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President Seeks To Cut Fuel Subsidies After Oil Decline - Politics (6) - Nairaland

Nairaland Forum / Nairaland / General / Politics / President Seeks To Cut Fuel Subsidies After Oil Decline (37678 Views)

The Economist On Naija Fuel Subsidies / Ghana Cuts Fuel Subsidies, Fuel Rises To N184 Per Litre / Okonjo-iweala Announces Fuel Subsidies Will Be Removed - GEJ Please Sack Her Now (2) (3) (4)

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Re: President Seeks To Cut Fuel Subsidies After Oil Decline by michaelbiz: 8:49am On Nov 21, 2014
SME1:
GEJ and his allies have obviously GONE MAD!!! And dat idiot could publicly open his smelling mouth to say d furl subsidy will create jobs for indigenes of other countries. Feeding dogs real meat while d citizen chew bones AGAIN!! Lord Pls let me get my visa ready soon. No hope for dis country anymore!!

I'm heading to Abuja as we speak. Already having chills all over me in the airport.
This is madness in democratic rule! Gone totally mad!

1 Like

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by IBROHIM: 8:49am On Nov 21, 2014
Whynotthetruth:



Don't you think you are the slowpoke? Why leave the substance of the message to crucify the messenger even when the messenger has good intents and seems far better than you;his critic...
good intentions? Hab my brother! Compare the amount paid on subsidy between the two years 2010 and 2011 and come back to tell me who is responsible! Imagine 400+ billion against 1.8 trillion the following year and you say Jonathan is no thief!

4 Likes

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Collynzo9: 8:50am On Nov 21, 2014
majekdom2:
the refined product sells in dollars not naira.
My guy let us sort this out once and for all.
The price of crude oil fell from about $110 in January to $79 precently, that is an almost 30% fall.
The exchange rate of Naira to dollar rose from about N162 in January to N176 presently that is a 9% percent fall in the value of naira.

So there is still a very huge difference, the cost of importing and subsidizing petroleum products is supposed to reduce by far.
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Nobody: 8:50am On Nov 21, 2014
WET FANTASY

I SAW A HOT DUDE I REALLY LIKE. I LOVE THEM HOT MEN NOT CUTE GUYS.
WHEN I SAW HIM AND STARTED FANTASIZING ABOUT GETTING LAID WITH HIM.
IN LESS THAN FOUR MINUTE, MY PANTIES BECAME WET.

LADIES, SHARE UR FANTASY. cool cool

NOBODY SHOULD SEND ME A PM. I AM NOT A WH.ORÈ
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by yaskarahyelhope(f): 8:51am On Nov 21, 2014
grin kiss cry cool grin cheesy
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by yaskarahyelhope(f): 8:52am On Nov 21, 2014
Wow! Biuriful. At least increase in salary. Diaries God O. At least building of oil plants everywhere Abi Na filling stations go reduce small. GI back to farming and better ya lives. Stop reducing d earth crust part if Naija to nofin
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Whynotthetruth(m): 8:53am On Nov 21, 2014
Gistdutch:
Bro,please am all hears tell me how micro and macro economic works and the fiscal and monetary policies you talk about. Thank you

First there's no free food even in Freetown...All country world over tax themselves more than us here eg Uk...Nigerians are use to free food hence they scream once they here taxation...infrastructure is money, how do government make money? taxation and co...our oil is just jara... have you taken time to study the austerity measures of government to cushion the effect of our income from crude oil export...where do you have issues? are you against taxation on luxury goods? or what?

5 Likes 1 Share

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by IBROHIM: 8:55am On Nov 21, 2014
slytubadth:
how ds man take bcome president b4?
na by mistake o! The way person go mistakenly give woman belle! Hahaha!

2 Likes

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by texazzpete(m): 8:55am On Nov 21, 2014
signz:


I suggest you Google mini modular refinery. It's being used in other countries. Technology has changed everything.

Please read this http://businessdayonline.com/2014/02/modular-refineries-test-the-idea/#.VG7pvvMo_Fo

Ah, Ok. I misread your post, assumed you were referring to the illegal refineries in the creeks.

I apologize.

With proper oversight, perhaps using imported modular refineries may help...but I can hazard a guess why they are currently illegal in Nigeria. If the ban is lifted, a whole lot of operators will be running with stolen crude.
We need to fix our oil bunkering problem first.
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by morningsta(m): 8:56am On Nov 21, 2014
bushdoc9919:
Was expected

Thing is, we are wasting money on a bottomless pit called Fuel subsidy. It has been subject to a lot of abuse and stealing.

I guess the money saved can now be used for Power, Railways, and education as well as health.

Well Nigerians.....looks like the era of cheap fuel is over. And this is one PDP policy that I won't be criticizing......because, unfortunately, it is the right thing to do.

Modified at 7.58: We must spend the saved money from the removal of fuel subsidy on improving power....so that we can no longer be dependent on oil....and instead...be doing industrial development, industrial development!

And no longer have a dutch diseased economy....the true problem of Nigeria..

Removal of the oil subsidy remains the only valid option for us without any doubt. My concern however is that whatever is saved from removal of oil subsidy is very likely to end up in some private pockets or accounts. I am in full support of the removal but only after our local refineries are fully operational at 100%. Many Nigerians can't afford oil at dollar rate especially with the naira loosing value on a daily basis.

1 Like

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by major466(m): 8:56am On Nov 21, 2014
It only takes two years to build a world class refinery. If the subsidy removal of 2012 was accepted by Nigerians, the country would be boasting of at least two refineries by now. To be honest, this subsidy thing is killing developments in the petroleum sector.

5 Likes 1 Share

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by nationwide24: 8:57am On Nov 21, 2014
APContherun:
People who ask what the govt is doing about fighting corruption needs to understand that the best and sure way to do so is block all avenues that lead to corruption. Cutting fuel subsidy is a sure way to reduce corruption in that sector, it may hurt in the short run but eventually everything will balance out.
But as has been said the President must have to carry the labour unions and civil society organisations along in the implementation of this policy but I doubt the unions will see reasons for it and it will be 1st Jan 2012 all over again.
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Nobody: 8:57am On Nov 21, 2014
AZeD1:

So what has that go to do with my post?
you really don't understand. Oil prices dropped in those countries because they don't import... That's so easy to comprehend. We produce about 2 million barrels/ day ...which sells at a lower price. You will be importing not at the price the company you importing from sells to their citizens but at a different price. Ok which has to go up.Brent crude oil was averaging just under $109 a barrel for the first six months of the year, and by September it was down to about $95 for the month.

It was at $85.23 a barrel in early Asian trade on Tuesday, meaning that refiners that bought cargoes as recently as September are sitting on losses of about $10 a barrel relative to current spot prices.

The price of refined products in Asia has mirrored the drop in crude, with Singapore gasoil dropping from $110.15 a barrel on Sept. 30 to $98.10 on Monday.

This means that a refiner who paid September prices for crude but is selling products at current prices is staring at substantial loss which has an effect on the export.
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by tzetzefly(m): 8:58am On Nov 21, 2014
Juicypunny:
WET FANTASY

I SAW A HOT DUDE I REALLY LIKE. I LOVE THEM HOT MEN NOT CUTE GUYS.
WHEN I SAW HIM AND STARTED FANTASIZING ABOUT GETTING LAID WITH HIM.
IN LESS THAN FOUR MINUTE, MY PANTIES BECAME WET.

LADIES, SHARE UR FANTASY. cool cool

NOBODY SHOULD SEND ME A PM. I AM NOT A WH.ORÈ
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by chemali: 8:58am On Nov 21, 2014
They are not only removing the subsidy, they also intend to increase VAT rate to at least 10%. Imagine the ripple effect on cost of every day goods. Yet income levels are not rising and the value of the naira is falling. We are effectively screwed.

1 Like

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Nobody: 8:59am On Nov 21, 2014
His down fall!
Who gives this man advice,
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by PStacks(m): 9:00am On Nov 21, 2014
"Like" if you believe "Jonathan must go"

5 Likes

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by bitterpenis(m): 9:01am On Nov 21, 2014
hizaya61:
Yeepa sp mogbe oooooooo, I go eat two sure today for golden chance lotto. Who fit give two sure make I play am with school fee
lol you no serious
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Toks2008(m): 9:02am On Nov 21, 2014
[size=30pt]AND SOME CLUELESS NIGERIANS WILL STILL VOTE THIS CLUELESS PDP ROGUES COME 2015.
[/size]

HOW CAN WE FORGET SO SOON THE WICKED,HEARTLESS AND NEVER HEARD OF IN THE HISTORY OF THE WORLD NEW YEAR GIFT FROM A PRESIDENT WHO WAS ELECTED BY SAME PEOPLE TO THESE SAME PEOPLE INCREASING PUMP PRICE FROM N65 TO OVER 100%.


I HATE THIS PDP CLUELESS GOVERNMENT.



THE BIG QUESTION HAD ALWAYS BEEN "WHY ARE THE REFINERIES NOT FUNCTIONING?"
[size=15pt]
AS I WRITE THIS VENEZUELA STILL SELLS 50LITRES BELOW N400[/size]. Please check and you will see how true this is

5 Likes

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by chronique(m): 9:04am On Nov 21, 2014
Long over due. Subsidy breeds corruption and it has to stop. 100% in support of it.

1 Like

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by AZeD1(m): 9:04am On Nov 21, 2014
majekdom2:
you really don't understand. Oil prices dropped in those countries because they don't import... That's so easy to comprehend. We produce about 2 million barrels/ day ...which sells at a lower price. You will be importing not at the price the company you importing from sells to their citizens but at a different price. Ok which has to go up.Brent crude oil was averaging just under $109 a barrel for the first six months of the year, and by September it was down to about $95 for the month.

It was at $85.23 a barrel in early Asian trade on Tuesday, meaning that refiners that bought cargoes as recently as September are sitting on losses of about $10 a barrel relative to current spot prices.

The price of refined products in Asia has mirrored the drop in crude, with Singapore gasoil dropping from $110.15 a barrel on Sept. 30 to $98.10 on Monday.

This means that a refiner who paid September prices for crude but is selling products at current prices is staring at substantial loss which has an effect on the export.
You are the one that doesn't understand. Oil prices have dropped and that has started a chain reaction along the value chain. unfortunately, the chain reaction did not get to Nigeria and that is were the problem is.

1 Like

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Nobody: 9:06am On Nov 21, 2014
Yes o remove the fuel subsidies and close the wide gap between the rich and the average nigerians.
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by deucelaw: 9:06am On Nov 21, 2014
What is the guarantee that the total removal would make any difference. No doubt, it is a good move if the priorities and structures are in place to ensure the savings are effectively used. But honestly i doubt that the government has the capacity to use it to Nigeria's benefit. They have failed in simpler things, why should it be different this time. So much mismanagement of public funds and in accountability by the government.




bushdoc9919:
Was expected

Thing is, we are wasting money on a bottomless pit called Fuel subsidy. It has been subject to a lot of abuse and stealing.

I guess the money saved can now be used for Power, Railways, and education as well as health.

Well Nigerians.....looks like the era of cheap fuel is over. And this is one PDP policy that I won't be criticizing......because, unfortunately, it is the right thing to do.

Modified at 7.58: We must spend the saved money from the removal of fuel subsidy on improving power....so that we can no longer be dependent on oil....and instead...be doing industrial development, industrial development!

And no longer have a dutch diseased economy....the true problem of Nigeria..

1 Like

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Whynotthetruth(m): 9:06am On Nov 21, 2014
IBROHIM:
good intentions? Hab my brother! Compare the amount paid on subsidy between the two years 2010 and 2011 and come back to tell me who is responsible! Imagine 400+ billion against 1.8 trillion the following year and you say Jonathan is no thief!

Bro, consider the quantity of petroleum products imported within same period? What magic took away our persistent queues at petrol stations? don't you think they licensed more people to import with increased quota abi quantity to import? what was the exchange rate between those years? if he stole those money, dont you think world bodies and even APC would have dug it up since especially with FOI now? Bro, seek out data and do the mathematics yourself...don't sit at home and abuse people unnecessarily...especially your leaders...imagine someone calling you a thief too as you just called another without any evidence just armchair gossip...

1 Like

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Nobody: 9:07am On Nov 21, 2014
Collynzo9:

My guy let us sort this out once and for all.
The price of crude oil fell from about $110 in January to $79 precently, that is an almost 30% fall.
The exchange rate of Naira to dollar rose from about N162 in January to N176 presently that is a 9% percent fall in the value of naira.

So there is still a very huge difference, the cost of importing and subsidizing petroleum products is supposed to reduce by far.
you really don't understand. Oil prices dropped in those countries because they don't import... That's so easy to comprehend. We produce about 2 million barrels/ day ...which sells at a lower price. You will be importing not at the price the company you importing from sells to their citizens but at a different price. Ok which has to go up.Brent crude oil was averaging just under $109 a barrel for the first six months of the year, and by September it was down to about $95 for the month.

It was at $85.23 a barrel in early Asian trade on Tuesday, meaning that refiners that bought cargoes as recently as September are sitting on losses of about $10 a barrel relative to current spot prices.

The price of refined products in Asia has mirrored the drop in crude, with Singapore gasoil dropping from $110.15 a barrel on Sept. 30 to $98.10 on Monday.

This means that a refiner who paid September prices for crude but is selling products at current prices is staring at substantial loss which has an effect on the export, hence we be paying more for import subsidy. The percentage change has only to effect in the internal operations in the country. Dunno if I am right to use the word " internal economies of scale " in economics.
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Ventura1: 9:10am On Nov 21, 2014
The excuse that without subsidy removal private refineries cannot be estalished is a farce
Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Toks2008(m): 9:10am On Nov 21, 2014
morningsta:


Removal of the oil subsidy remains the only valid option for us without any doubt. My concern however is that whatever is saved from removal of oil subsidy is very likely to end up in some private pockets or accounts. I am in full support of the removal but only after our local refineries are fully operational at 100%. Many Nigerians can't afford oil at dollar rate especially with the naira loosing value on a daily basis.


You guys still don't get it.

The big question is why have we not put the refineries into work all these years?

Imagine the ijebus bringing cassava to Lagos to process to ijebu garri and now take it back to ijebu land to sell at increase prices with the excuse that the facilities to process cassava to garri in ijebu land is faulty.

Cant you see that we have been taken for fools all these years?

these guys steal our crude oil through exporting and this is why they refused to repair as well as create more refineries yet they still suffer the citizens to pay for their own greed,lapses and mediocrity.

Is this fair?

7 Likes

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by Collynzo9: 9:11am On Nov 21, 2014
majekdom2:
you really don't understand. Oil prices dropped in those countries because they don't import... That's so easy to comprehend. We produce about 2 million barrels/ day ...which sells at a lower price. You will be importing not at the price the company you importing from sells to their citizens but at a different price. Ok which has to go up.Brent crude oil was averaging just under $109 a barrel for the first six months of the year, and by September it was down to about $95 for the month.

It was at $85.23 a barrel in early Asian trade on Tuesday, meaning that refiners that bought cargoes as recently as September are sitting on losses of about $10 a barrel relative to current spot prices.

The price of refined products in Asia has mirrored the drop in crude, with Singapore gasoil dropping from $110.15 a barrel on Sept. 30 to $98.10 on Monday.

This means that a refiner who paid September prices for crude but is selling products at current prices is staring at substantial loss which has an effect on the export, hence we be paying more for import subsidy. The percentage change has only to effect in the internal operations in the country. Dunno if I am right to use the word " internal economies of scale " in economics.
No need for unnecessarily long posts.
Are you are telling me that those we import petroleum products from will be selling to us at an even higher price despite the drop in the price of crude oil?
It doesn't sound one bit sensible to be honest.

4 Likes

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by chupcake(m): 9:12am On Nov 21, 2014
Okay... GEJ is just clueless. There are so many ways to make budget cuts, let them start from their own backyard. You can't tell me there isn't an atom of truth when Sanusi gave us that absurd numbers. Now he wants to remove the subsidy on PMS without a viable refinery in the works. The ones we have, there is no talk of it been fixed and some fool will tell me its okay to just yank the subsidy just like that. He could check the corruption in the subsidy payments buh he isn't.. So many things that could be done buh nah, its the option that will make the life of the masses hard is what he's doing. I hope he even dies before the election sef.

3 Likes

Re: President Seeks To Cut Fuel Subsidies After Oil Decline by jadajada: 9:12am On Nov 21, 2014
By next year d price of a liter of pms will be > d price of a bottle of star.

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