chrisxxx:

Other countries like Benin and Ghana do not subsidize at all. If it is increased here in Nigeria but kept below the going international market rate it will still be attractive to smugglers.

Why then did PPPRA/FG say that increases in pump price is what actually makes d product unattractive in neighboring countries?

If u can identify nigerias fuel, will it stop d product from finding it's way to neighboring countries?

Why have d increases in pump price according to PPPRA/FG over d years not discouraged snuggling in anyway?

Lazycapitalist2:


Im not the guy, but the thing is, a total removal of subsidy, not a partial removal of subsidy, will make the price of fuel as high as it is in Benin, Ghana, Niger, and Cameroon
However, since subsidy has gone, there would be an increase in more investment in refinereis, which increases production, and brings down the price here via competition...meaning that at the end of the day, there would be many countries lining up to buy our now cheap fuel



So long as subsidy keeps the price of fuel below the price in neighbouring countries, yes.




Very easy...because no matter how much we increase the price here, it is increased higher in our neighbouring countries...eg when fuel was officially costing N87 here, it was costing as high as N150 in Niger republic. Today, fuel costs N162-5 HERE, in Niger it is now N377..ALL because the increases in prices here means that government has reduced the amount it spends on subsidsing fuel...not removing subsidy eniteirly (roughly speaking)

The gentleman u are speaking for said:

"If the price is increased in Nigeria it makes it more attractive to be smuggled".

chrisxxx:

Other countries like Benin and Ghana do not subsidize at all. If it is increased here in Nigeria but kept below the going international market rate it will still be attractive to smugglers.

Which means, u and him aren't even on d same page. Kindly see d article below.

https://www.google.com/amp/s/m.timesofindia.com/business/india-business/high-gas-diesel-prices-in-india-prompt-smuggling-of-fuel/amp_articleshow/81152309.cms

Nigeria has been increasing price of fuel since 1973 till date. What was d amount of subsidy removed& what is d amount left?

According to u:

"However, since subsidy has gone, there would be an increase in more investment in refinereis, which increases production, and brings down the price here..."

What investment has accrued so far?

lexy2014:


The gentleman u are speaking for said:

"If the price is increased in Nigeria it makes it more attractive to be smuggled".



Which means, u and him aren't even on d same page. Kindly see d article below.

https://www.google.com/amp/s/m.timesofindia.com/business/india-business/high-gas-diesel-prices-in-india-prompt-smuggling-of-fuel/amp_articleshow/81152309.cms

Nigeria has been increasing price of fuel since 1973 till date. What was d amount of subsidy removed& what is d amount left?

According to u:

"However, since subsidy has gone, there would be an increase in more investment in refinereis, which increases production, and brings down the price here..."

What investment has accrued so far?

1..If.subsidy is removed completely to the point that the NNPC no longer sets the price but the market, there will be a price increase initially

At the same time there would be more investment since crucially speaking there is no price control again

Meaning there is increased production

And thus reduced prices

And thus increased potential for exporting fuel

There has been no proper subsidy removal in the past because government still controls the price of fuel every time

As things stand landing cost of fuel is over 200 naira . Fuel is sold at 162 naira per liter. Subsidy is the amount paid to cover the difference. Plus the amount paid to prevent price differentials due to transport costs.



2. Finally you cannot expect things to coat the same as they did in 1973.

3. The gentleman was mistaken to beleive that increased prices makes smuggling attractive.

post=101539710:

E go shock u if u know how many cars dey Naija!

As at 3 years ago.
We have 12 million registered cars in Nigeria!
REGISTERED oooo!!


Na Confirm be dat o.

So it justifies the figure right? You are nothing but a hypocrite.

Lazycapitalist2:


1..If.subsidy is removed completely to the point that the NNPC no longer sets the price but the market, there will be a price increase initially

At the same time there would be more investment since crucially speaking there is no price control again

Meaning there is increased production

And thus reduced prices

And thus increased potential for exporting fuel

There has been no proper subsidy removal in the past because government still controls the price of fuel every time

As things stand landing cost of fuel is over 200 naira . Fuel is sold at 162 naira per liter. Subsidy is the amount paid to cover the difference. Plus the amount paid to prevent price differentials due to transport costs.



2. Finally you cannot expect things to coat the same as they did in 1973.

3. The gentleman was mistaken to beleive that increased prices makes smuggling attractive.

If d gentleman was mistaken, then what were u defending in his comment? But again, d link I shared with u also showed d PM of India corroborating his viewpoint.

Even if 1973 isn't 2021, it doesn't change d fact that fuel subsidy has been removed continuously since 1973 till date. So d question is what has been removed of d subsidy and what is left of d subsidy?

According to u:

"However, since subsidy has gone, there would be an increase in more investment in refinereis, which increases production, and brings down the price here..."

What investment has accrued so far?

I doubt. There's just more smuggling