For the past week, the country has been suffering from a severe scarcity of petrol. This is incredulous considering that the Dangote refinery is not only the largest in Africa but fully capable to satisfy the country's fuel need and have a lot for export. Nigeria should have a steady abundance of petrol, diesel and kerosene.

There's plenty of diesel and kerosene in the market. Private oil marketers are purchasing these products from the refinery directly. One at this juncture one should ask: why isn't Dangote supplying petrol to marketers directly as it does kerosene and diesel? The demand for petrol far outweighs than that of the other 2 products combined. Petrol production should have been its prime priority.

Alas it is not! Why? Because the price of petrol is subsidized. Dangote has long since said that fuel products would be sold at a market reflective price from his refinery. The subsidized petrol price isn't market reflective. Dangote would be selling at a loss if he sold at the subsidized price. His wariness to sell to marketers directly is the biggest proof that petrol is subsidized.

Petrol subsidy lovers hate the truth. The only narrative they are interested in is very cheap petrol, any other thing can go to blazes.

My cousin last night informed me that Dàngote wants to crash the price of petrol and said that's why there's scarcity. That the greedy marketers are waiting to purchase Dangote's stock when he commences selling it.

He said Dangote would probably crash the factory price of petrol to 300-400 per ltre. He said he had informed me earlier that with local production comes with it the elimination of landing cost which would in turn make the product very cheap. I honestly did not know whether to laugh or cry.

He had once warned me that if I expressed my views outside, the public beat me up.

What he fails to understand is that as long as the subsidy persist, so also the economic regression it brings with it. The outsized cost of the subsidy forces the government to borrow to fund it, either throuh costly treasury bills or the outright printing of money. This in turn puts severe pressure on the Naira value, which leads to its assive depreciation of the currency. With it comes high inflation which further impoverishes the poor , who are the most vulnerable.

I dont understand

The only ugly truth here is that tinubu government has failed.


If tinubu and his daft technocrat ministers can't perform they should all shamefully resign.

Vagabonds in power

So much nothing.

When you come online to talk in this Information Age you should try and back your talk with data, make market comparisons and analysis before making your submissions.

grandstar:
For the past week, the country has been suffering from a severe scarcity of petrol. This is incredulous considering that the Dangote refinery is not only the largest in Africa but fully capable to satisfy the country's fuel need and have a lot for export. Nigeria should have a steady abundance of petrol, diesel and kerosene.

There's plenty of diesel and kerosene in the market. Private oil marketers are purchasing these products from the refinery directly. One at this juncture one should ask: why isn't Dangote supplying petrol to marketers directly as it does kerosene and diesel? The demand for petrol far outweighs than that of the other 2 products combined. Petrol production should have been its prime priority.

Alas it is not! Why? Because the price of petrol is subsidized. Dangote has long since said that fuel products would be sold at a market reflective price from his refinery. The subsidized petrol price isn't market reflective. Dangote would be selling at a loss if he sold at the subsidized price. His wariness to sell to marketers directly is the biggest proof that petrol is subsidized.

Petrol subsidy lovers hate the truth. The only narrative they are interested in is very cheap petrol, any other thing can go to blazes.

My cousin last night informed me that Dàngote wants to crash the price of petrol and said that's why there's scarcity. That the greedy marketers are waiting to purchase Dangote's stock when he commences selling it.

He said Dangote would probably crash the factory price of petrol to 300-400 per ltre. He said he had informed me earlier that with local production comes with it the elimination of landing cost which would in turn make the product very cheap. I honestly did not know whether to laugh or cry.

He had once warned me that if I expressed my views outside, the public beat me up.

What he fails to understand is that as long as the subsidy persist, so also the economic regression it brings with it. The outsized cost of the subsidy forces the government to borrow to fund it, either throuh costly treasury bills or the outright printing of money. This in turn puts severe pressure on the Naira value, which leads to its assive depreciation of the currency. With it comes high inflation which further impoverishes the poor , who are the most vulnerable.

jking001:
When you come online to talk in this Information Age you should try and back your talk with data, make market comparisons and analysis before making your submissions.

Probably the biggest proof that there is a subsidy is the huge price deferential between petrol and the other 2 commonly used fuels which are diesel and kerosene.

While diesel and kerosene going for around 1,000 per litre, petrol is sold at 600 per litre. Why such a huge gap?

Because the petrol is sold at asubsidized price.

grandstar:
For the past week, the country has been suffering from a severe scarcity of petrol. This is incredulous considering that the Dangote refinery is not only the largest in Africa but fully capable to satisfy the country's fuel need and have a lot for export. Nigeria should have a steady abundance of petrol, diesel and kerosene.

There's plenty of diesel and kerosene in the market. Private oil marketers are purchasing these products from the refinery directly. One at this juncture one should ask: why isn't Dangote supplying petrol to marketers directly as it does kerosene and diesel? The demand for petrol far outweighs than that of the other 2 products combined. Petrol production should have been its prime priority.

Alas it is not! Why? Because the price of petrol is subsidized. Dangote has long since said that fuel products would be sold at a market reflective price from his refinery. The subsidized petrol price isn't market reflective. Dangote would be selling at a loss if he sold at the subsidized price. His wariness to sell to marketers directly is the biggest proof that petrol is subsidized.

Petrol subsidy lovers hate the truth. The only narrative they are interested in is very cheap petrol, any other thing can go to blazes.

My cousin last night informed me that Dàngote wants to crash the price of petrol and said that's why there's scarcity. That the greedy marketers are waiting to purchase Dangote's stock when he commences selling it.

He said Dangote would probably crash the factory price of petrol to 300-400 per ltre. He said he had informed me earlier that with local production comes with it the elimination of landing cost which would in turn make the product very cheap. I honestly did not know whether to laugh or cry.

He had once warned me that if I expressed my views outside, the public beat me up.

What he fails to understand is that as long as the subsidy persist, so also the economic regression it brings with it. The outsized cost of the subsidy forces the government to borrow to fund it, either throuh costly treasury bills or the outright printing of money. This in turn puts severe pressure on the Naira value, which leads to its massive depreciation of the currency. With it comes high inflation which further impoverishes the poor , who are the most vulnerable.

As I've said before, in 2013 I had a near violent argument with a middle manager who worked in the fuel purchasing department of Oando. This guy was insisting that fuel subsidy didn't exist, despite my showing him his own company's annual report where they reported how much subsidy payments they got from government.

Thanks for this. Nigerians simply don't want to understand. That's my conclusion.

Good Luck to Nigeria.

Landing cost of 100 naira during Jonathan how it ends up at 1000 under tinubu?

When tinubu remove subsidy in totality NNPC said landing cost have move to 500 from 250. Tinubu remove it completely. Ok fine within 7-8 months they told us landing cost is 1200 again and Tinubu is still paying subsidy. Who is fooling who.

Reason there is no fuel is because tinubu is owning subsidy to NNPC. Hence no more supply. Filling station are only selling old stock.

The same thing with power generation. Tinubu is owning gas company reasons theu increase electricity for band a

Lol.

This is funny. Crash pms to N400 when diesel is N1,000? How?

Pms is more expensive to produce than diesel, so there is no way it can sell less than diesel.

ivandragon:
Lol.

This is funny. Crash pms to N400 when diesel is N1,000? How?

Pms is more expensive to produce than diesel, so there is no way it can sell less than diesel.

Don't mind this one na paid APC propaganda machine

Petrol is an international product with known price

The fact people expect fixed price of petrol
when the exchange rate is not fixed show they don't know how things work

Th least you can get petrol is $0.7 at today's rate that's just over #1000 .. There is no how dangote can sale below that and break even... It's mathematically impossible

Dangote would rather export us petrol while he sells diesel n kero that's not subsidized

grandstar:
That the greedy marketers are waiting to purchase Dangote's stock when he commences selling it.

^^^


There is no such thing as 'greed' in the dictionary of the free market. You know this.

Fujiyama:


^^^


There is no such thing as 'greed' in the dictionary of the free market. You know this.

That's what my cousin said, not me.

He is presently fuming over the high cost of food. He said was furious just yesterday when he learnt that locally produced beans was selling at the same price as imported rice.

He said government must impose price controls for sanity to reign. I did not bother correcting him as he won't change.

"Greedy" merchants would lose out eventually if they sold their products higher than what's obtainable in the market but he would never accept that.