By Tom Ashby
LAGOS, Nigeria (Reuters) - A Nigerian general strike over
rising domestic fuel costs entered a second day on Tuesday,
helping drive world oil prices to record highs, but supplies
from the world's seventh largest exporter flowed normally.
Most businesses, including public transport, were closed
across Africa's most populous nation, but essential services
such as electricity and oil production were not affected by the
four-day "warning" strike.
"Everything is OK at the terminals," said an oil shipping
source.
The white-collar oil union PENGASSAN said its members were
maintaining basic services at oil facilities across the
southern oil-producing Niger Delta which pumps almost all the
OPEC nation's 2.3 million barrels per day of oil.
"We are maintaining only essential services at flow
stations and export terminals, but all other people are
observing the strike," said deputy PENGASSAN president
Babatunde Ogun.
Fears over Nigerian supplies helped drive world oil prices
to new highs, with U.S. futures hitting a fresh record of
$54.28 per barrel on Tuesday.
Ogun said oil workers did not want to close down the
industry that provides 90 percent of the country's hard
currency earnings.
Unions are demanding the government reverse a recent 20
percent hike in pump prices to 53 naira (40 cents) per litre,
arguing that the liberalization policy is impoverishing most
Nigerians who live on less than a dollar a day.
The warning strike is due to last until Friday, when unions
will break for two weeks to allow for a deal to be reached with
government. If there is no deal, unions threaten a total,
indefinite strike which could pose greater risk to oil exports.
TENSIONS IN OIL DELTA
President Olusegun Obasanjo has set up a committee
including unions and government to discuss ways of cushioning
the effect of withdrawing state subsidies from fuel, which is a
key part of his government's economic reform program.
Talks on Monday were inconclusive, and they were adjourned
until Thursday.
"We haven't yet resolved the issue of price reversal," said
Adams Oshiomhole, head of the central union body, Nigeria
Labour Congress.
Despite the country's huge oil wealth, most Nigerians have
limited access to clean water, electricity, sanitation, health
care and schooling. They view cheap fuel as one of the few
benefits of the oil industry.
It is the second time in two months that Nigeria's oil
exports, whose low sulfur content is prized by refiners in the
United States and Asia, have been jeopardized.
Ethnic militia fighting troops in the delta threatened last
month to shut down oil facilities until the government agreed
to talks about political power and economic revival in the
impoverished region. (Additional reporting by Tume Ahemba)
