Gandollar:
The man buhari doesn't understand anything, whatever you hear him say is only a rehearsed theory expounded by his clueless aides.

Pple don't knw buhari is a puppet
Pple are just controlling the old man

eeby1983:
you should tell them to build more refineries before jettison fuel subsidy

NNPC can't because they are spending revenue that they would have used for refinery on subsidy.

Neither can any independent marketer build new refineries...except people like Danogte...because subsidy would force them to sell below the production cost meaning they cannot make a profit.

tactius:


Well, the problem is, government does not have funds to build new refineries.

If they did, GEJ would have built 3 new ones by 2015. He won't have even disturbed Dangote at all.(Buhari cannot build new refineries because oil prices have been too low to make much of anything).

If subsidy goes, the marketers benefit. They get sky high profits from selling fuel above the imported price. They also eventually would be inspired to create new jobs, and invest in things...like refineries.

Foreign investment would come in because they can now make profits from selling fuel above production price.(Dangote, by the way, won't reduce prices. Upon all the loans he took to build his refinery...)

NNPC is not building new refineries because they are spending the money they could have used for that on....you guessed it...subsidy. Subsidy means that you sell below the production or import price, and government pays you the difference. That's why marketers engage in sharp practices like lying about what they import, or selling fuel in Benin or Niger...where it costs N290 or more...because it is the only way to make a healthy profit...of sorts.

On the contrary all they have to do is carry out strict supervision and implementation of the construction of smaller/ modular refineries in all the states of the federation aided by the private sector, this will support whatever comes out of the current refineries.. It's not about Buhari or GEJ but about a fast thinking and pro active leader who doesn't care less about whose ox is gored.. That is what we don't have now..

Joromi12:
Crude production cost is 5 dolls This man is mad. The current subsidy being done my nnpc sucks because it doesnt allow private coys import fuel meaning lesser jobs. NNPC has over at least 51% of all oil blocks in nigeria. So the nnpc is selling its oil to refenieries abroad at a reduced rate so that they can sell for us at 145. Let them continue abeg. because if dem remove am we wont see wat the money is being used for

The man is truly mad. Imagine selling calculating the price of crude with a blind attitude to global pricing. Totally ridiculous.
My own issue is we should have refining capacity above our needs to allow for market forces to bring it down.

Apt and direct. Thanks for the analysis.

tactius:


In 2015..it cost N132 to import one liter of fuel into the country. Nigeria was importing most of the fuel it consumed, and still does.

We were selling the fuel at N87 per liter.

At the same time, oil prices ...crude oil was at $30 per barrel and dropping. (Note...we need oil to be at $140 to run a balanced budget. It's our break-even price. Russia is $99, Saudi $78, Kuwait $45)

No money to subsidize fuel, our treasury was running on empty, our reserves were dropping...and there were fuel queues because most makreters were running at a loss.

Based on advice, the government raised prices to N145....above the landing price of N132. That ended the need for subsidy, and ended the queues.

When landing price rose above N150.(in part thanks to a rebound in oil prices, but not enough to get dollars to rebuffer the naira)..that's when government made NNPC the sole importer of fuel, and forced them to use their money to pay 'underrecovery' (though govt too is paying)...ie subsidy by another name.

NB: I am not defending Buhari or APC. I believe that if GEJ had been allowed to remove fuel subsidy, we would have seen benefits as early as 2014....with increased investment, etc.)

Therein lies the reason why they do not want functional refineries.

Every government including this benefits from the scam called subsidy.

Subsidy based on faulty statistics and even faultier pricing templates.

Why are we not talking about repairing the refineries or building new ones.

What we pay in "subsidy" would have built new refineries many times over

What do i know anyway...

blackpanda:


nnpc is under the control of Govt and it audits nnpc periodically. Thats sure better than a fraudulent criminal sitting somewhere, doing nothing and just packing home Billions

i was an ex auditor. Audif of nnpc is like looking for pin inside well water.

tactius:
The argument does not make sense because we import over 80 percent of fuel into this country

And because our refining capacity is low


And why is it low? Because low prices due to.fuel subsidy.

The OP is assuming we have refining capacity enough to supply 60% of our need, when we have enough to supply ten percent. We import the rest.

And we are throwing away trillions of naira on a corruption ridden subsidy regime that he complains about yet expects the government to maintain?

Look guys, I hate saying this. God knows I wish fuel was 50 naira per liter. But thanks to subsidy, investment is not flowing into the country to build new refineries because no one is going to sell at a price below production costs.

And look, we are running out of money to even pay for the subsidy. With oil below the 140 USD we need it to be for a budget without borrowing, and with reports that we are cutting prices to sell our oil, where will we get the money.

Subsidizing fuel is wasting money. I will prefer to pay 200 per liter than pay the subsidy cabals for nothing

really? does it mean you just acquired sense or you are just being a zombie? I doubt you said same when GEJ tries to remove subsidy. It will never be well with Nigerians and her citizens. God ( if at all he exists ) must hate nonsense

Joromi12:
i was an ex auditor. Audif of nnpc is like looking for pin inside well water.

AKUKO

searchlight:
really? does it mean you just acquired sense or you are just being a zombie? I doubt you said same when GEJ tries to remove subsidy. It will never be well with Nigerians and her citizens. God ( if at all he exists ) must hate nonsense

Have supported subsidy removal since 2012....

Yes , I don't like PDP or APC...but I know a good deal when I see one.

Have been following the subsidy argument for longer than 2012.

SluttanSlayer:
Civil servants should get ready for mass retrenchment

Nigerians should get ready for double inflation , high fuel price at least 350 naira

Your suffering jus dey start

All these just because Dangote is building refinery and wants to recover his investments in 1 year!

NIGERIANS SHINE YOUR EYES O


It's probably time to riot like Algeria and Sudan...

tactius:
The argument does not make sense because we import over 80 percent of fuel into this country

And because our refining capacity is low


And why is it low? Because low prices due to.fuel subsidy.

The OP is assuming we have refining capacity enough to supply 60% of our need, when we have enough to supply ten percent. We import the rest.

And we are throwing away trillions of naira on a corruption ridden subsidy regime that he complains about yet expects the government to maintain?

Look guys, I hate saying this. God knows I wish fuel was 50 naira per liter. But thanks to subsidy, investment is not flowing into the country to build new refineries because no one is going to sell at a price below production costs.

And look, we are running out of money to even pay for the subsidy. With oil below the 140 USD we need it to be for a budget without borrowing, and with reports that we are cutting prices to sell our oil, where will we get the money.

Subsidizing fuel is wasting money. I will prefer to pay 200 per liter than pay the subsidy cabals for nothing

You prefer to pay N200/ liter than pay subsidy cabals for nothing

Sorry, you sound like someone being fed or has no responsibilities.

If Buhari has 10% of his acclaimed integrity, he would fish out the cabals and let us have peace.

Fuel hike + increased VAT = inflation in a country with more than 50% below poverty line.

Electricity is epileptic and we run gen almost 14hrs daily when we are at home. Imagine the amount incurred on a weekly basis.

Why?

blackpanda:
[s][/s]

first of all this has nothing to do with the topic

secondly converting naira to dollar is very silly cos we dont spend US dollars in nigeria

Stick to the topic pls

Another one is here.

How does it not tie into the equation?

You get sense so?

We don't spend dollars in Nigeria like we don't incur cost in dollars.

ClearFlair:
Davido supports those criminals called yahoo boys. No wonder he supported PDP...thank God we rejected them

Most yahoo boys campaigned for the next level.

tactius:
The argument does not make sense because we import over 80 percent of fuel into this country

And because our refining capacity is low


And why is it low? Because low prices due to.fuel subsidy.

The OP is assuming we have refining capacity enough to supply 60% of our need, when we have enough to supply ten percent. We import the rest.

And we are throwing away trillions of naira on a corruption ridden subsidy regime that he complains about yet expects the government to maintain?

Look guys, I hate saying this. God knows I wish fuel was 50 naira per liter. But thanks to subsidy, investment is not flowing into the country to build new refineries because no one is going to sell at a price below production costs.

And look, we are running out of money to even pay for the subsidy. With oil below the 140 USD we need it to be for a budget without borrowing, and with reports that we are cutting prices to sell our oil, where will we get the money.

Subsidizing fuel is wasting money. I will prefer to pay 200 per liter than pay the subsidy cabals for nothing

. You don't have conscience.

bukatyne:


You prefer to pay N200/ liter than pay subsidy cabals for nothing

Sorry, you sound like someone being fed or has no responsibilities.

If Buhari has 10% of his acclaimed integrity, he would fish out the cabals and let us have peace.

Fuel hike + increased VAT = inflation in a country with more than 50% below poverty line.

Electricity is epileptic and we run gen almost 14hrs daily when we are at home. Imagine the amount incurred on a weekly basis.

Why?

1.I have a job, thank you very much.

2.And yes, you are right.

3.At the same time, we are spending trillions on subsidy regime that is full of corruption....and trillions that could have been used to, you know build refinereis, etc....

4.If subsidy goes, YES...fuel will rise to N200 per liter....BUT

A) Foreign investors will come and build refineries as would local investors attracted by the profit.

b) As a result of the resultant improved supply, prices will come down

c) Then there is the fact that more JOBS would be created

d) Niger and Benin are poorer than us...YET...they pay above N290 per liter. (I asked google).


We were here before....in 2001...Obasanjo brought in GSM. One sim cost above N20000 and above. Service was bad. Poeple were angry, and were shouting at government to cut prices. Obj did not hear.

And the GSM companies took our money, invested in better facilities, and expansion...and thanks to that....I can type this stuff from my home., instead of the internet cafe I was using in 2004 , for 100 per hour, with slow speed.


And you complain about power. Well, when PHCN became discos, the government then brought in subsidy where we pay discos 30 percent of the cost of power, while they were to pay the remaining 70%

As a result, DISCOS are running at a loss, have had to be balied out several times, and cannot meet demand for new equipment. Plus. they cannot earn enough to pay GENCOS for power....which is why GENCOS cannot pay gas companies for gas...which is why discos reject power from the gencos...which is why government cannot raise the money needed for fixing transmission,....because everyithing is running at a loss....and as a result, we have BAD POWER.


But if you were a businesswoman, or man and you were selling minerals at N100 per bottle, and government intervened and forced you to sell your minerals at N30 so that people can afford it...while they give you a subsidy of N40/.....meaning you lose N30 per bottle...would you be happy?

Yet you want the same for your PMS and your power sector. And you complain when marketers smuggle and do scarcity...because if they did not do that they would be BROKE ...and they would sack workers...leading to more joblessness.

But no, you guys want a socialist government...while you want to be capitalist,.like...how is that possible

Honestly, Obasanjo is not my favoriite person, but if he had listened to you people on GSM....we would have still been struggling with VSAT while our neighbours would have been moving on to 5G.bUT HE DID NOT...and the price of sim came down to N500 after 5 years.

The same can happen if we pay high prices for fuel and POWER.....yes, prices would be high...but the resulting increased investment, and so on would eventually bring prices down, and we would even HAVE improved supply more refienries, and 50000mw OF POWER.

And what annoys me is that you would call be a bubu zombie. Six years ago, when I was making the same argument under GEJ...you would have called me a wailer.

When I don't even LIKE any of those bigot ridden, tribal, parties called PDP or APC.

Anyway...continue sabotaging your economy in the name of cheap fuel, and cheap power....and call me an oppressor for telling the truth.

Good evening.

GrammarNazi1:

...Buhari...

Lol

martins21:
. You don't have conscience.

Okay. Good evening to you too.

I so don't like writing what I have written...but it is the truth...and whether you like it or not, whether you insult me or curse me...it is the truth.

This article was written by an economic illiterate.

How can you base value of a barrel on the cost of production?

I'm an estate agent and we are the ones that value old machinery that is to be disposed. Why are we called rather than a mechanical engineer. Because the value if a product is determined by market forces, that is the forces of demand and supply. It is not determined by cost of production.

If the value of oil was determined by production cost, no company will invest billions in drilling oil.

There are times when the market value is less than the production cost! The Saudis crashed the price of oil around 2015 in order to run American shale oil producers out of business. Many were forced to stop producing as the cost of production was higher than the market price

Buhari,the friend of the poor

Mrpojj:


Pple don't knw buhari is a puppet
Pple are just controlling the old man

An old fool with early signs of dementia for that matter.

Another Version of Deludness

Jadax:
Summary please

Fuel Subsidy is a scam that Buhari knows...

Joromi12:
Crude production cost is 5 dolls This man is mad. The current subsidy being done my nnpc sucks because it doesnt allow private coys import fuel meaning lesser jobs. NNPC has over at least 51% of all oil blocks in nigeria. So the nnpc is selling its oil to refenieries abroad at a reduced rate so that they can sell for us at 145. Let them continue abeg. because if dem remove am we wont see wat the money is being used for

you know what's up nwanne


nnpc scamming the country clean and cleae

bukatyne:


You prefer to pay N200/ liter than pay subsidy cabals for nothing

Sorry, you sound like someone being fed or has no responsibilities.

If Buhari has 10% of his acclaimed integrity, he would fish out the cabals and let us have peace.

Fuel hike + increased VAT = inflation in a country with more than 50% below poverty line.

Electricity is epileptic and we run gen almost 14hrs daily when we are at home. Imagine the amount incurred on a weekly basis.

Why?

bukatyne, the current petrol subsidy is the BIGGESR SCAM in Africa

Subsidy needs to go, for tangible devt

BUT

This fuel subsidy seems to br the oNLY major thing that the masses enjoy from the govt?, and the argument is that IF we save from subsidy, the money will still be stolen by politicians


So it's a catch 22 situation

ideally subsidy should go

BUT

the peculiarities of Nigeria is another PALAVA

tactius:


1.I have a job, thank you very much.

2.And yes, you are right.

3.At the same time, we are spending trillions on subsidy regime that is full of corruption....and trillions that could have been used to, you know build refinereis, etc....

4.If subsidy goes, YES...fuel will rise to N200 per liter....BUT

A) Foreign investors will come and build refineries as would local investors attracted by the profit.

b) As a result of the resultant improved supply, prices will come down

c) Then there is the fact that more JOBS would be created

d) Niger and Benin are poorer than us...YET...they pay above N290 per liter. (I asked google).


We were here before....in 2001...Obasanjo brought in GSM. One sim cost above N20000 and above. Service was bad. Poeple were angry, and were shouting at government to cut prices. Obj did not hear.

And the GSM companies took our money, invested in better facilities, and expansion...and thanks to that....I can type this stuff from my home., instead of the internet cafe I was using in 2004 , for 100 per hour, with slow speed.


And you complain about power. Well, when PHCN became discos, the government then brought in subsidy where we pay discos 30 percent of the cost of power, while they were to pay the remaining 70%

As a result, DISCOS are running at a loss, have had to be balied out several times, and cannot meet demand for new equipment. Plus. they cannot earn enough to pay GENCOS for power....which is why GENCOS cannot pay gas companies for gas...which is why discos reject power from the gencos...which is why government cannot raise the money needed for fixing transmission,....because everyithing is running at a loss....and as a result, we have BAD POWER.


But if you were a businesswoman, or man and you were selling minerals at N100 per bottle, and government intervened and forced you to sell your minerals at N30 so that people can afford it...while they give you a subsidy of N40/.....meaning you lose N30 per bottle...would you be happy?

Yet you want the same for your PMS and your power sector. And you complain when marketers smuggle and do scarcity...because if they did not do that they would be BROKE ...and they would sack workers...leading to more joblessness.

But no, you guys want a socialist government...while you want to be capitalist,.like...how is that possible

Honestly, Obasanjo is not my favoriite person, but if he had listened to you people on GSM....we would have still been struggling with VSAT while our neighbours would have been moving on to 5G.bUT HE DID NOT...and the price of sim came down to N500 after 5 years.

The same can happen if we pay high prices for fuel and POWER.....yes, prices would be high...but the resulting increased investment, and so on would eventually bring prices down, and we would even HAVE improved supply more refienries, and 50000mw OF POWER.

And what annoys me is that you would call be a bubu zombie. Six years ago, when I was making the same argument under GEJ...you would have called me a wailer.

When I don't even LIKE any of those bigot ridden, tribal, parties called PDP or APC.

Anyway...continue sabotaging your economy in the name of cheap fuel, and cheap power....and call me an oppressor for telling the truth.

Good evening.

You have made points, but disagree with the below

But if you were a businesswoman, or man and you were
selling minerals at N100 per bottle, and government
intervened and forced you to sell your minerals at N30 so
that people can afford it...while they give you a subsidy of
N40/.....meaning you lose N30 per bottle...would you be
happy?


if the govt force a you to sell at 30, the govt will subsidise at 70.

Buhari isn't right about anything

PMB has already spent trillions on subsidy! Through increment since 5years ago


Now paying another cash for subsidy is total abuse and uselessness of the useless Nigerian economy

Very true
The dumb youths still believe there is anything like APC/PDP.
Politicians are ALL puppets of the highest bidders
In the next couple of years another idiot would come to power and claim he needs to remove subsidy and the docile peeps would argue online.

1StopRudeness:


Thank you...Same format they used in 2015 to lie to us and increased fuel price from 86 to 145.....Now they are claiming they ddnt remove what they actually said they removed because they want to tell us it's time to remove it again...

Wow...Yahoo boys are rulling us

I believe he meant fuel consumed domestically, hence his reference to PH refinery.

Anything produced and consumed locally is 100% determined by the cost of production. Especially when the market is not only guaranteed it is growing daily.

Just like real estate, just provide the houses and even before you paint the building, people are already offering you money.

grandstar:
This article was written by an economic illiterate.

How can you base value of a barrel on the cost of production?

I'm an estate agent and we are the ones that value old machinery that is to be disposed. Why are we called rather than a mechanical engineer. Because the value if a product is determined by market forces, that is the forces of demand and supply. It is not determined by cost of production.

If the value of oil was determined by production cost, no company will invest billions in drilling oil.

There are times when the market value is less than the production cost! The Saudis crashed the price of oil around 2015 in order to run American shale oil producers out of business. Many were forced to stop producing as the cost of production was higher than the market price

Islie:







https://www.vanguardngr.com/2019/04/buhari-is-right-fuel-subsidy-is-a-fraud/

Yesssssss! And Good luck was wrong fuel subsidy wasn't a fraud. Wow!!! What a nation with reasonable citizens!