poseidon12:


Of course there are benefits. In addition to the points by @tonybarcanista, removal of the subsidy would ensure more transparency(less corruption in the fuel importation business) and would also reduce the incessant fuel scarcity. Government should have no business subsidizing fuel purchase for the rich who happen to be the main beneficiaries (with their fleet of luxury cars and suv's).
By the way, Saudi Arabia just slashed their own subsidy and increased price of petrol by 50% for its citizens.
Nigeria should have removed the subsidy long time ago. Those who opposed the earlier attempt to remove it under Jonathan were misinformed obviously.

Saudi u used as case sturdy have working and functioning refinaries Infact they export petrol not only that the subsidy they pay is in subsidising cost of production not cost of importation.this is what Nigeria should do even if they sell to us minus VAT we will be happy.Libya use to subsidise electricity for its citizens as domestic house holds pay next to nothing and comeracial pay just %50.Another good example is the UK govt normal diesel cost £1.15 but they subsidise it up to %60 to sell @£0.40 to farmers to be used in farm mechinaries their way of checkmating this not to be abused by other diesel rd users was to colour it RED.

asuustrike2009:

we can carry out what we economist call import substitution

That's negative economy. right there 1 step 4 ward 10 step back

erico2k2:

U guys will wake up and type from where the sun don't shine.did you end up telling the OP what he stands to gain and where the hell did you see KD refinary working?in your dreams?how did the crude get there bearing in mind we need heavy crude like the ones from venuzuella? Sometimes I think cheap weed is on the lose.

With so many grammatical blunders, It has shown that you don't understand the message I'm trying to put across.
So, instead of exchanging words with you which won't be beneficial to me, I will rather stay clear
Peace bro/sis/whoever

[quote author=don4real18 post=41668617]
With so many grammatical blunders, It has shown that you don't understand the message I'm trying to put across.
So, instead of exchanging words with you which won't be beneficial to me, I will rather stay clear
Peace bro/sis/whoever [/quote
Plz point out my grammatical errors teacher.I have a good xcuse for making such errors I'm an Engineer what's yours? In the absence of nothing insightful to say the likes of you result into tongue in cheek lamentation. Stop taking that cheap weed.and stop embarassing us Nigerians.we have friends abroad who read what we write.they are meant to hold us in high esteem. When you say Kaduna refinary is working either you are deliberately lying or high on cheap weed.

captain247:


If you have better explanation why not explain to the person who ask the question? Moreover I see that you are unable to understand what is being subsidized here.

I gave an example, you were loss and tag it nonsense simply becos you couldn't understand.

Do you think if there weren't subsidy petrol would be sold at #97 when global price was $100? Go and find out the subsidise amount govt was paying on every liter and ADD it to the #97 then you will understand better the actual cost of Petro without subsidy.

Secondly, go and find out why wasn't subsidy removed when global oil price was high at $100 But now that its low.
Government understand that if subsidy is removed now that oil price is low the country will save more money than if they waited till its high by then people will begin to complain but if subsidy is removed now people will understand it also when global price goes up and local price increase with it. Though gov't hope with our refineries working the cost will not be too high since subsidy has been removed.

sorry blind and gullible APC bat. U are seriously dumb with little or no sense. When gej reduced fuel frm 97to 87 when crude was $70 wat was fashola's comment? Ans before u open ur caused mouth or use ur stupid fingers

[quote author=erico2k2 post=41673273][/quote]
I am also an engineer and it's not a reasonable excuse not to make use of English properly

asuustrike2009:

It will fall. it's a matter of time before we begin to see the effect. As I earlier said, excess supply over demand forces producers to reduce their price. If we have some many persons refining petroleum products in Nigeria, they would want to secure large market shares as we see happening in the telecommunications industry. Giving license one one or two operators will make the price high at the initial stage ,gradually licenses are issued to more operators of which they wouldn't sell at same price with their competitor.

The competition in the telecommunication sector is what is called, non price competition. Even when the competition was about price; the regulators came in and stopped it. They gave one preposterous excuse then the telecom companies should improve their services rather than give price promotions.
Why did you think they stopped some promotions?.
Note this though, perfectly competitive situation in Economics is just a term of reference. Real economists don't believe in its existence.

emeeco:

The competition in the telecommunication sector is what is called, non price competition. Even when the competition was about price; the regulators came in and stopped it. They gave one preposterous excuse then the telecom companies should improve their services rather than give price promotions.
Why did you think they stopped some promotions?.
Note this though, perfectly competitive situation in Economics is just a term of reference. Real economists don't believe in its existence.

that's is them but they exist. Yes the market is monopolistic not perfectly competition because we have one form of regulation or the other..Perfect market doesn't exist The problem with competition on price is that quality is affected at the expense of the consumer

erico2k2:

U guys will wake up and type from where the sun don't shine.did you end up telling the OP what he stands to gain and where the hell did you see KD refinary working?in your dreams?how did the crude get there bearing in mind we need heavy crude like the ones from venuzuella? Sometimes I think cheap weed is on the lose.

Kaduna has been modified to crack light crude.

erico2k2:

Even at low Oil prices we will never buy petrol at below N180 cos at the moment it's $1/lyre in the US due to cheap oil prices. If we use that rate we are talking N200. vat at %20 N220.so to answer the OP there is No gains for you.

US does not buy petrol in liters.