Fuel subsidies are not only enormously wasteful but they also greatly distort the efficient distribution of resources, the International Energy Agency (IEA) has observed.

In its latest Oil Market Report (OMR), a monthly IEA publication which provides a view of the state of the international oil market and projections for oil supply and demand 12-18 months ahead, the IEA said demand for oil products in Nigeria is likely to fall in the first quarter of 2012, following the removal of a gasoline subsidy.

Observations from the report on January 20, 2012 as it relates to recent developments in Nigeria under the title: The Removal of gasoline subsidy in Nigeria sparks protests and cut in demand, reads: http://www.iea.org/index_info.asp?id=2354