georgeakins:


At least, he should have waited for Dangote refinery to come on stream. Why the rush?
I doubt if Nigerians will embrace another increase.

Wait ?
He knows the date and it's not this year or even 1st half 2024.
Scam refinery

Holla911:


How could he have repaired the refineries while paying subsidy ?
One had to go for the other. We have no choice but to endure the difficult time while hoping and praying our leaders get it right.
The current hardship is a global pandemic.

Were you told that there was no money to repair the refinery when subsidy was being paid?

helinues:
Oil marketers are one of the problems we have in Nigeria. They are just too selfish with everything

You can't support deregulation/subsidy removal and still be blaming fuel marketers now, unless you don't understand how economy works.
Naira is losing value everyday, you should expect the price of imported fuels to go up accordingly. More problems if the price of barrel of crude should go up too. It was 78 dollars last time, imagine if it goes up to 100 dollars.

nairalanda1:


Because for many years, under the guise of subsidy, we were selling fuel at a loss, and paying a subsidy to cover the loss...which it could never do adequately. That led to the refineries running down, and then we became an importer.

We're oil producing nation for crying out loud! We deserve subsidy on the fuels we use as citizens, not just petrol but diesel and kerosine too. Kerosine is so expensive that it is no more avaliable in 99% of Nigeria's households, our kids don't even know how it looks like or what it is used for.
Keep it up, you're doing well. May be by the time the price of petrol reach 1200 naira, you will finally understand that this is wrong

Ofunaofu:

“Well, the President himself said in his speech that if they find petrol prices moving too high, they would intervene. We don’t want prices to move too high, nobody wants that."

How would they intervene if not through subsidies

Back to where we all began

I said it then that the "Subsidy is gone" pronouncement was the most thoughtless pronouncement ever made by a president

How can you remove subsidy on petrol without a single local refining capacity.
Where on earth is that done.

I don't see how subsidy is not going to be reinstated with the way price is climbing up every month. It is either he subsidises and makes life bearable for the masses or he eventually faces some kind of unrest across the country

helinues:
Oil marketers are one of the problems we have in Nigeria. They are just too selfish with everything

Abeg just hold that your mouth if you have nothing good to say chai

maasoap:

Were you told that there was no money to repair the refinery when subsidy was being paid?

Don't mind the mumu

helinues:


Importation of some products must be reduced to start with, what's the meaning of importing fish, Turkey, books, toothpicks, the annoying part we make our native wear here and also sew it, same as shoes, why are we still Importing second hand clothes and shoes?

We waste our forex reserves importing unnecessary things

All those itmes had been banned by Buhari since his first tenure in office. Why are you still mentioning them as if they were still parts of what is consuming forex

jullary:
Haaa egba mi?
Is dangote refinery not coming up again?!
Abi why refining what we have freely abroad.
Truthfully Nigeria na scam.

dangote ko, ben bruce ni, I'm even surprised you thought that refinary will start working soon

delkuf:
but they said dangote refinery will start refining fuel. Why has it not start working. didn't tinubu know that dangote refinery wsant working before he removed subsidy. He must have known but the citizen are the one to be use as sacrifice

Don't be deceived.
Dangote's fuel will be as expensive as imported one.

porka:


Alagba, they are not even talking about subsidy here in the report. What the report is about is forex. Did you read it at all?

You are still talking about subsidy that has been removed? They have removed it for you as you have advocated.

Your 10-20 years projected suffering is foolish. You don't even have any idea what suffering entails. You don't even know what destabilization that would occur before next year or two and you are making foolish 10 - 20 year projections.

Try and reason like a human being who has higher capacity than lower animals. What exactly are the projections based on? Nothing but wishful thinking.

Have you factored in sudden international or even national occurrences that might happen along the line? War in the Balkan; Tension or possible war between US and China? NATO-Russo war? Massive global economic and financial turmoil? Another pandemic?

Did you know if there would be coup in Niger by this time last year, for instance? Have you considered that Nigeria might be spending so much money out of the so called subsidy savings in prosecuting a needless war in the coming months?

The fuel subsidy had to go. The unification of the rates was also non-negotiable.

If there's any problem on ground, there needs to be improvement. The price of petrol needs to be fully deregulated. Having to inform the public there is going to be a rise means a subsidy removal isn't enough.

As for forex unification, the CBN has done a half baked job. That is why a disparity still exist (though considerable smaller) and worse, the Naira is experiencing a free fall in value. This will affect the eventual selling price of petrol.

Holla911:


How could he have repaired the refineries while paying subsidy ?
One had to go for the other. We have no choice but to endure the difficult time while hoping and praying our leaders get it right.
The current hardship is a global pandemic.

Which kind lie be this?

You must be a very big fool if you believe that it's not possible to to repair the refinery while paying subsidy.

grandstar:


The fuel subsidy had to go. The unification of the rates was also non-negotiable.

If there's any problem on ground, there needs to be improvement. The price of petrol needs to be fully deregulated. Having to inform the public there is going to be a rise means a subsidy removal isn't enough.

As for forex unification, the CBN has done a half baked job. That is why a disparity still exist (though considerable smaller) and worse, the Naira is experiencing a free fall in value. This will affect the eventual selling price of petrol.

Nigeria is not the only country that pays subsidy.
The problem with subsidy was that our govt is too weak for fight the oil marketers, and there's no accurate data of Nigeria fuel consumption per day.

We are simply suffering from the failure of the govt.

Countries all over the world pay subsidy, especially for energy.
In Nigeria, pms seems to be our major source of energy due to nepa failure.
There's absolutely nothing wrong with paying for subsidy.

nairalanda1:


Fixing the refineries won't have caused a reduction in price by much. (Some say N70).

The refineries still have to be maintained, and repaired and kept in good working order, and they still have to pay workers at competitive rates. Guess what, we still have to import components for the refineries from abroad, then they have to pay taxes, and pay for community projects.

And all that costs money.

Fuel isn't cheap. Niger, Ghana refine fuel from domestic crude, and fuel costs above N800 in both countries.

do u know how much fuel cost in oil producing contries Do u know??

nairalanda1:


Fixing the refineries won't have caused a reduction in price by much. (Some say N70).

The refineries still have to be maintained, and repaired and kept in good working order, and they still have to pay workers at competitive rates. Guess what, we still have to import components for the refineries from abroad, then they have to pay taxes, and pay for community y

Fuel isn't cheap. Niger, Ghana refine fuel from domestic crude, and fuel costs above N800 in both countries.

You are so blinded by ethnic bigotry. You should know dat humanity supersede ethnicity.

nairalanda1:


Fixing the refineries won't have caused a reduction in price by much. (Some say N70).

The refineries still have to be maintained, and repaired and kept in good working order, and they still have to pay workers at competitive rates. Guess what, we still have to import components for the refineries from abroad, then they have to pay taxes, and pay for community projects.

And all that costs money.

Fuel isn't cheap. Niger, Ghana refine fuel from domestic crude, and fuel costs above N800 in both countries.

That's false! Niger and Ghana still import refined petroleum from Europe and Asia, their local production is not enough just like here in Nigeria. There is only one major functioning refinery in Ghana at Tema. Ghana oftentimes import crude oil from Nigeria at international rate.

Then the question is why not privatize the refineries if govt can't run it efficiently?

Truth is, Tinubu is a failure. Is it not idi.otic for politicians in Nigeria to says that corruption in oil subsidy is the main reason they want to end subsidy and the mu.mu masses in Nigeria accepted it. Why not tackle the corruption there first?

All over the world, govts subsidize essential products and commodities for it's citizens. Oil producing nations like Algeria, Angola, Libya and Egypt all sell cheaper subsidized fuel in Africa and why are there no corruption in these countries subsidy?

In fact, subsidized oil should be a RIGHT in Nigeria owning to the fact that petro and diesel are tied to electricity generation in Nigeria. Millions of businesses in Nigeria rely largely on it for power generation and survival. A Nation that has stable electricity can't remove subsidy and Nigeria will follow suit.

Even if Tinubu resolve to remove it, is it not common sense to first fix the refineries either by borrowing to fix them or by handing them over to private ownership? Why the rush in removing the subsidy by Tinubu? ...That is if the plight of the masses even crosses the man mind before taking decisions.

Holla911:


How could he have repaired the refineries while paying subsidy ?
One had to go for the other. We have no choice but to endure the difficult time while hoping and praying our leaders get it right.
The current hardship is a global pandemic.

Dollar is scarce because it's being stolen from the National Purse. . .

No subsidy = more $ for Nigeria

Where is the $ going to?

Dollar scarcity is why Naira keeps falling. . .

Hence petrol becomes more costly. . .

helinues:
Oil marketers are one of the problems we have in Nigeria. They are just too selfish with everything

why not go do the business

nedekid:
Only on naija does nothing make sense.
They said subsidy was killing the economy, we were using scarce income ie dollar income from crude sales to subsidize. Subsidy was causing devaluation of the naira and other tales. They removed subsidy and floated the naira, yet naira keeps crashing to the dollar. As I said some time back, make price of petrol ₦1500 per liter and in few months, they will make it 2000, it is an upward spiral.
The acting cbn governor the other day was prectically saying he did not know what to do again.

Their is no CBN governor!
He is practically receiving instructions from Aso Rock.
If their is a rerun, Nigerians may still pretend not to care about price of fuel.
What gave Tinubu the boldness to cause this hardship is that Nigerians didn't
push back when all of them were promising to crash the economy by removing fuel subsidy.
If at all subsidy is to be removed, it must be done in small increments.
You don't throw millions of people into poverty because you want to be seen as bold.

nairalanda1:


You won't want the kind of petrol they produce in Tamuno's backyard refinery in your engine....sure way of wrecking it overtime.

Also, Libya produces just as much fuel as we do, and has 7-8 million people...thus far more money to spend on refineries than we do with 200 million and growing people.

This is where the expertise of the nnpc is needed or why is the nnpc so focused on crude export and so lackadaisical when it comes to local production...... that private citizens can refine crude and arrive at an end result is an indictment on the nnpc and it shows that there is nothing special about having a refinery be it regular or modular and the fact is that sharp practices all because of forex are the inhibiting factors in us not having common refineries

Indifferent12:

Nigeria is not the only country that pays subsidy.
The problem with subsidy was that our govt is too weak for fight the oil marketers, and there's no accurate data of Nigeria fuel consumption per day.

We are simply suffering from the failure of the govt.

Countries all over the world pay subsidy, especially for energy.
In Nigeria, pms seems to be our major source of energy due to nepa failure.
There's absolutely nothing wrong with paying for subsidy.

The subsidy was consuming over 2% of the GDP. It simply had to go. Government had been borrowing to provide this subsidy. The govt was completely broke as 96% of this year's budget would be spent on debt servicing.

At the time May 28 this year when the subsidy existed, the international price of a litre of crude oil was 47cents. Multiply that with even the unrealistic N440 rate to a dollar at that time and you get N207 per litre. That means it was cheaper to buy petrol in Nigeria than crude oil which was used to refine it. What now if refining costs and other variables were added?

Economist frown at subsidies as they are wasteful, encourage over-consumption, discourage investment and are prone to corruption.

Many countries subsidize nothing. They instead place high taxes on them.

The subsidy removal has improved the government's bank balance and that is why a rating agency improved the country's rating. Many countries and international organization have praised the subsidy removal after almost 40 years of trying.

nairalanda1:


Yes, because we labour under the idea things must be cheap.

The sad thing is, people want to make money. People have families to bring up, and have to pay employees, have to pay for equipment upgrades and have to pay for a lot of stuff.

Prices are going up everywhere.

But still, at the end, it is partly the fault of the APC you support, and the PDP some of your oppositie numbers support. Nigeria is the way it is because the leadership has not gotten our economy out of its dependence on oil, nor has it gotten our economy to a economy that utilizes its raw materials to make goods the world needs.

Until your tinubu takes those hard decisions, nothing is going to change. But at the end, it is counterproductive to spend money pretending that fuel is cheap. We are in massive debt because of forty to fifty years of pretending. Time it stopped.

Story .. hard decision to end subsidy without an alternative to alleviate the suffering of masses and businesses. Oil is the earner, mover and driver of Naija economy. Recession is already on the way.. cos spending has contracted.

Hard decision, yet he nominated about 50ministers to balloon already bloated recurrent expenditure.

Una neva dey serious

ivolt:

Their is no CBN governor!
He is practically receiving instructions from Aso Rock.
If their is a rerun, Nigerians may still pretend not to care about price of fuel.
What gave Tinubu the boldness to cause this hardship is that Nigerians didn't
push back when all of them were promising to crash the economy by removing fuel subsidy.
If at all subsidy is to be removed, it must be done in small increments.
You don't throw millions of people into poverty because you want to be seen as bold.

Well said.
Unfortunately, the poverty is likely to increase. If possible, go and fill your tank with fuel. Few minutes ago, I bought 10k to top up, but my guy, the manager told me to fill up as by this evening or latest tomorrow morning, they are ajusting their pump for a higher price. Had to buy 30k extra, total 40k and tank still not full.

Let it sell for N1000.

Bebigiby1:
There is no international regulatory price for refined fuel as it depends on cost of production (Cost of refining)..... Unlike oil price that is regulated by OPEC

What is cost of Refining?
Same labor(ours would be cheaper p but we no get refinery) , same machines same fuel

Holla911:


How could he have repaired the refineries while paying subsidy ?
One had to go for the other. We have no choice but to endure the difficult time while hoping and praying our leaders get it right.
The current hardship is a global pandemic.

HOW MUCH IS APC PAYING YOU, THE 500 BILLION LOAN TINUBU WANT TO BORROW FOR PALLIATIVE AND PURCHASE OF BULLET PROVE CARS FOR THE EXECUTIVES AND THE LEGISLATORS THIS IS THE FIRST TIME HOUSE MEMBERS WILL BE BUYING BULLET PROVE CARS AT A TIME OF SO CALL SACRIFICE, YOU MUST BE A VERY STUPID PERSON TO THINK WE ARE AS STUPID AS YOU, BOYS WITHOUT FORMAL EDUCATION ARE OPERATING LOCAL REFINERY IN NIGER DELTA THE STUPID GOVERNMENT OF NIGERIA CAN'T

HumbleWunmi:
. The solution to all this problem is simple if our government is honest and factual..Make all the refineries in Nigeria works,make dollar as a currency illegal in anyone's pocket or hand. All dollars should be in Nigerian banks and make dollar account accessible to people doing business and those who needs FX,never give anyone dollars for whatsoever reason,let them fill forms and transfer the exact amount from there dollar account to the foreign account or any account they needed to..make dollar bill illegal like emefiele and his crooks did to naira the other time,you will realise influx of dollars will be moped up in our society and make our security agencies arrest and prosecute any aboki exchanging dollars in the black market..Black market should be banned and every transaction should be made official. Solution will be created immediately..but our corrupt government,can they enforce thispolicy or even make it as laws?no because they are corrupt.

God bless you
You're a rational person

villagereporter:
You are so blinded by ethnic bigotry. You should know dat humanity supersede ethnicity.

Oga, where did tribe come in in my comment?

I don't like abusing people here, it is crude, but this your comment makes no sense.

I have backed subsidy removal since 2012. I never voted for APC in my life. Party of old men regardless of tribe.

WildChild00:
Hardship looms, Tinubu ought to have fixed the refineries before removing subsidiaries, now hardship knows no party affiliation, both Apc, pdp, labour party supporters feels the pains.

Hmmm... You are right.


However, what's wrong with Dangote Refinery ?



Has it not started operating already?












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grandstar:


The subsidy was consuming over 2% of the GDP. It simply had to go. Government had been borrowing to provide this subsidy. The govt was completely broke as 96% of this year's budget would be spent on debt servicing.

At the time May 28 this year when the subsidy existed, the international price of a litre of crude oil was 47cents. Multiply that with even the unrealistic N440 rate to a dollar at that time and you get N207 per litre. That means it was cheaper to buy petrol in Nigeria than crude oil which was used to refine it. What now if refining costs and other variables were added?

Economist frown at subsidies as they are wasteful, encourage over-consumption, discourage investment and are prone to corruption.

Many countries subsidize nothing. They instead place high taxes on them.

The subsidy removal has improved the government's bank balance and that is why a rating agency improved the country's rating. Many countries and international organization have praised the subsidy removal after almost 40 years of trying.

What is your opinion on Seyi Tinubu skating on the streets of Abuja? Does it have any effect directly or indirectly on the local price of fuel?

Tianamen1:


What is your opinion on Seyi Tinubu skating on the streets of Abuja? Does it have any effect directly or indirectly on the local price of fuel?

I really really don't care. It won't.

Tinubu isn't perfect. That's why one should never put faith in man.

Yes, the nepotism in Lagos may soon invade Abuja. This won't surprise me. The only other government where nepotism was blatant was Abacha's.

grandstar:


I really really don't care. It won't.

Tinubu isn't perfect. That's why one should never put faith in man.

Yes, the nepotism in Lagos may soon invade Abuja. This won't surprise me. The only other government where nepotism was blatant was Abacha's.

I am not an Economist by training. I am an Information systems practitioner. My understanding of economics is that it deals with human behaviour with respect to our wants and desires, and the means, with which we obtain our desires, have alternative uses.

People tend to act in a herd mentality following the behaviours of people they admire. This is we companies pay influencers money. Seyi Tinubu, the first son of Nigeria, is roller skating in Abuja on imported roller skates at a time when the naira is under immersed pressure. He is just one individual, but his actions would influence a whole lot of other people.

The logo for APC is a broom. a broom consists of individual sticks which have little to no use until they are combined together. Can you now see any effect Seyi's behaviour can have on fuel prices?