Nigeria Increases Fuel Prices

The Nigerian government has decided to increase fuel prices early this year despite political opposition in the run-up to landmark elections, the International Monetary Fund said on Monday.

Unions have vowed to resist any increase at the pumps and say it could foment unrest ahead of the elections in April.

"Despite the political pressures associated with the upcoming elections, the government has decided to increase fuel prices in early 2007," the IMF said in a policy document released on Monday.

Nigerians have been suffering lengthy queues at filling stations for two months and unions suspect the government is using scarcity to prepare people for a hike in prices.