July 14 (Bloomberg) -- A Nigerian oil workers' union suspended its strike to force the government to lower the price of diesel, improve the country's poor roads and the welfare of union road-tanker drivers, the union said.

The strike by members of Nigeria's National Union of Petroleum and Gas Workers, or Nupeng, was called off temporarily after a government undertaking to address the demands, Peter Akpatason, president of the union, said by phone from Lagos today.

The strike, which began on July 11, caused shortages across the country with long queues forming at fuel stations. Nigeria loses about 8 billion naira ($67.9 million) in revenue each day as a result of regular attacks by militants on oil facilities in the Niger Delta region.

``We're suspending the strike for two weeks,'' Akpatason said.

The government has 14 days in which to bring down the spiraling cost of diesel, negotiate new salaries for the union's tanker drivers and announce a program for maintenance of major highways across the country, Akpatason said.

A meeting of union officials, the government and other ``stakeholders'' has been scheduled in the Nigerian capital, Abuja, tomorrow to work out details of the agreement, he said.

Diesel sold at the pumps costs about 150 naira a liter (0.26 gallons), more than double the wholesale price of 60 naira a liter. The union wants the government to stop speculators, who they claim are pushing up pump prices.

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To contact the reporter on this story: Dulue Mbachu via the Johannesburg bureau on abolleurs@bloomberg.net.

Last Updated: July 14, 2008 05:20 EDT