In a bid to ease crippling fuel shortages, Nigeria has decided to allow petrol prices to rise by two-thirds.
Petroleum Minister Ibe Kachikwu said a litre of petrol would now cost a maximum of 145 naira ($0.73), up from about 86.5 naira.
As retailers get more money, the government aims to further cut back on costly subsidies.
Fuel shortages have seen Nigerians paying up to 250 naira a litre on the black market.
However, the country’s trade union federation has said it will resist what it calls the “criminal” rise in the petrol price.
The Nigeria Labour Congress said the increase from 86 naira ($0.43; £0.30) a litre to 145 naira should be reversed.
Nigeria is one of Africa’s largest oil producers but it has had to import fuel to meet demand.
Fuel shortages have seen Nigerians paying up to 250 naira a litre on the black market.
“The main reason for the current problem is the inability of importers of petroleum products to source foreign exchange at the official rate due to the massive decline of foreign exchange earnings of the federal government,” Mr Kachikwu said.
“We expect that this new policy will lead to improved supply and competition and eventually drive down pump prices,” he added.
