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Nairaland Forum / Nairaland / General / Politics / Petrol Price’ll Go Down In Six Months – Kachikwu (44135 Views)
Dogara Releases Pay Slips For Six Months / Kachikwu Disagrees With Amaechi At FG Town Hall / Petrol Price Will Down Within Six Months – Kachikwu (2) (3) (4)
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Re: Petrol Price’ll Go Down In Six Months – Kachikwu by Ndolarr: 7:12pm On May 12, 2016 |
As long as the wickedly greedy marketers continue to source forex at the black market rate to import Petrol, this prediction by Kachukwu can never come to pass! Nigerians should ask him to publicly show the indices adopted to arrive at the new price of N145 per liter. Honestly, government needs to rethink this policy and balance things up. Putting a cap of N145 per liter suggests that it will be close to N200 per liter in states close to the borders. We are yet to see the end of fuel scarcity contrary to Kachukwu's optimism!! |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by precious1967(m): 7:26pm On May 12, 2016 |
this minister must ve filling stations and refinery. how on earth all d filling stations dt refused to sell fuel yesterday got d fuel they are selling at d new rate TODAY? |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by upuphim(m): 7:32pm On May 12, 2016 |
With subsidy removal, no functional refineries and continued destruction of illegal refineries, which way Nigeria? I think the illegal refineries should be legalized to encourage local production of PMS. This is what developing countries do. Kachikwu should explore this area so that his prophecy of pump price of PMS can come down. We shouldn't depend on importation in this regard. |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by Nobody: 7:39pm On May 12, 2016 |
silvoice: SO WHO YOUR CURSE HELP |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by Nobody: 7:41pm On May 12, 2016 |
If this APC dnt get anyfin right in this their 4yrs, aswear b4 dem go smell power again ehn...even in state level |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by yunabdul: 7:43pm On May 12, 2016 |
Let the subsidy go and problem be solve once and for all. PMB has the political will to do it. Patient is all we need. God bless Nigeria. |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by being(m): 8:03pm On May 12, 2016 |
d remote cause of this bismal bismal is d fx rigidity of d govt. If fx had been released to d market forces, it won't b difficult to source for fx. and fx won't b this high. Now marketers hav been abandoned to d fx black market and d end result is a price as high as N 145 BTW y can't petro export dollars b used to cater for fuel imports? I guess its cos som marketers would want to take advantage of it inflating their fx figures which goes on to show DT corruption is d fundamental problem of this country. Infact it's our only problem 1 Like |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by Tarzaa(m): 8:20pm On May 12, 2016 |
Never wanted to call you guys liars but there is nothing I'll do now than to call you! |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by Nobody: 8:21pm On May 12, 2016 |
TheNonce: Leave the silly one, I jst hate it when those idiots keep calling the mumu name, pls ban me,i'm getting off this shit forum. |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by daryoor03(m): 8:28pm On May 12, 2016 |
Mr Minister, tell Nigerians the gospel truth. |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by melvin0004(m): 8:50pm On May 12, 2016 |
greatgod2012:kachukwu another lie Mohammed..... Fuel scarcity wud end by April 7,2016......by may 11th fuel was hike to #145 ......useless minister defending ur illiterate pay master.....go on.God is watching u....2019 is ard d corner..... |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by franklingud(m): 9:08pm On May 12, 2016 |
Thunder fire that ya mouth kachikwu. |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by BrainnewsNg(f): 9:41pm On May 12, 2016 |
hob: We will wait |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by Agimor(m): 9:49pm On May 12, 2016 |
greatgod2012:It's being a while Ma,seem you went on sabbatical . |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by 2odd(m): 10:55pm On May 12, 2016 |
if anybody can tell me a policy that has been beneficial to the masses under Buhari , I swear I go happy |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by attegambo: 12:31am On May 13, 2016 |
labour union is a toothless dog, pls keep quit |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by naija247: 1:00am On May 13, 2016 |
#000000 |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by 3sha4lyf: 1:48am On May 13, 2016 |
Ndolarr: I think a cap is a cap regardless of near border or not. Anyone selling above 145 does so illegally according to the new regulations. I think I agree with him that fuel prices will go down due to competition but I think it may not fall below a threshold. If the market forces align with the idea behind this subsidy removal and fuel hike, it's possible dollars on the parallel market may fall, thereby causing the price at which marketers procure forex and buy PMS products to fall as well, then they may decide to lead the market and drop their prices. Again, the market is now open. What it means is that you and I can now source for and sell PMS. So as we get the forex and product, we can now see with a reasonable profit margin. So if dollar drops to 160 (I pray o), we can on our own drop our prices to 80+profit per litre of PMS so we make more turnover and outshine the market, that's if we don't see the likes of Ifeanyi Uba selling fuel for 40 cos whichever way, he can't lose (Example is Dangote selling cement for 1,100 when other cement companies feel their production cost is even more than 1,100 so they cannot sell at a loss to compete with him, yet Dangote isn't losing anything by selling at the cheapest price) However, even if dollar increases to 500 (I pray it never does), PMS will still not sell for more than 145 according to the new rules. I see this as an opportunity wise investors are already consulting their financial advisers on. The only k-leg is that many intending youths investors may not have the bulk monies to risk entering this business, and it's dangerous taking a loan from bank or elsewhere to venture into this if you don't understand how the market works. I think this is just what I can make of the new policy. Perhaps the 145 price may be tooooooo high a benchmark, but if you personally know any importer or someone close to them, ask them frankly and they'll tell you anything lower than that for now would have still led to the same "artificial scarcity" and hoarding that we have been experiencing. Haven't you noticed that now the queues are beginning to fearless out? All of a sudden, there's fuel. Ha hahahahaha. So what went wrong since Politics by the Cabals in that industry. Lol I can only hope for better days ahead. I just have to be positive cos while I will be complaining without actions, other smart ones will be taking advantage of the situations on ground to their benefit |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by bashydemy(m): 7:15am On May 13, 2016 |
Keneking:You reason like a true Nigerian who understand what is going on and how to get things right. The decision of FG is best as that will be a lot of marketers and some will be selling at more lower price. 1 Like |
Re: Petrol Price’ll Go Down In Six Months – Kachikwu by gbengaadeleye12: 10:18am On May 13, 2016 |
1. What are the benefits of the new price regime to Nigerians? This government is elected to serve the people and provide benefits to all. The new pricing regime brings the following benefits: • End fuel scarcity by ensuring availability of products at all locations of the country • Reduce hoarding, smuggling and diversion substantially and stabilise price at the actual product price • Ensures market stability and improves fuel supply situation through private sector participation • Creates Labour market stability (will potentially create additional 200,000 jobs through new investments in Refineries and Retails and prevent potential loss of nearly 400,000 jobs in existing investments) 2. Why the new price regime? The rise in crude oil price and high cost of importation has brought back subsidy regime (at the price of N86.50). Due to decline in government income related to crude oil and output caused by vandalism in the Niger Delta, there is neither funding nor appropriation to cover this in the 2016 Budget. 3. What is the difference between this new price regime and previous price reviews? All stakeholders including marketing companies and independent experts were consulted in arriving at the appropriate cost reflective regime. This is in furtherance of the Price modulation on framework rolled out in January 2016 which entails modulating prices down or up on a periodic basis to reflect actual prevailing costs. 4. Is this new price regime a deregulation? While the Federal Government is not deregulating, this new price regime will ensure that the price of products are monitored to ensure that citizen get a fair value for products they purchase. 5. What is the real cost of PMS to the Nigerian consumer? The estimated “true” cost of PMS was valued to be 243.05NGN per litre. This is factoring the estimated average mean spent to obtain PMS at the official price (86.50NGN), the estimated hourly wage of the average Nigerian, the average price of PMS on the black market and the estimated average volume bought per visit to the filling stations. 6. Why do we have scarcity? There is no foreign currency and ways to open a new line of credit to bring in more products. This has imposed over 90% supply on NNPC since October 2015 in contrast to the past where NNPC supplies ~48% of the national requirement. NNPC does not have the resources for and is not designed to meet this increase in supply, this has resulted in the current fuel situa on across the country. 7. Will the new price regime ensure availability of petroleum products? The new price regime will allow Marketers source their foreign exchange independently of CBN and ensure product supply in all locations of the country. 8. Will the new price regime positively impact the economy? Clearly the continuation of subsidies in any form for PMS limits the ability of Government to deliver its statutory functions such as power generation, security, education, health etc. The new price regime will enable government focus on these critical sectors and free up our scarce foreign exchange to be used in other sectors 9. What happens to the subsidy provision in the 2016 budget? There is no provision for subsidy in the 2016 budget 10. Why should Nigerians not enjoy low petroleum prices as the nation is a Major Oil Producer? Crude oil price is an internationally traded commodity, the prices are not set by the countries that produce it. Neither do oil producing countries get a discount in the international market for producing this product. Furthermore, crude oil price accounts for about 80% of the final cost of fuel. Other costs include depot charges, transportation costs, chemicals, spare parts, raw materials etc are related to host of economic factors. Therefore, at the current crude oil price of $40 per barrel, the finished domestic refined fuel sold to Nigerians cannot be priced lower than the cost of the crude. 11.How would the Government ensure that Petroleum Marketers sell within the price range? The relevant regulatory institutions (DPR, PPPRA) will be further empowered to ensure level playing ground, strict compliance with market rules by all stakeholders and consumer protection. 12. How does petrol price in Nigeria compare with those of other countries? Even with the new price regime, Nigeria would remain one of the cheapest fuel markets in Africa and this could even be lower once competition takes effect. Likelihood of smuggling to neighbouring countries will also be significantly reduced with the new price regime 13. When do we stop petroleum products importation? Nigeria will only stop product importation when it attains local production sufficiency. The present administration is working assiduously on key initiatives towards boosting our local refining capacity.
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