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Nairaland Forum / Nairaland / General / Politics / Actual Cost Of Petrol Is N39.50 Per Litre – Coalition (9693 Views)
PDP Chieftain Criticizes Buhari Over Allocation Of N39.4bn For Oil Exploration / Petrol Price Is Now 74 Naira Per Litre? / FG Reduces Price Of Petrol To 87 Naira Per Litre (2) (3) (4)
Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by chiomen: 9:51am On Dec 30, 2011 |
AGAINST claims by the Federal Government that it was subsidizing fuel with over N1.3 trillion, it has been revealed that Nigerians were already over-paying for fuel, as the actual cost of a litre of petrol ought to be N39.50k. This was disclosed in Benin, Edo State, yesterday, in a communiqué at the end of a Town Hall Meeting organised by a Coalition to Save Nigeria, CSN, made up of Nigeria Labour Congress, NLC; Nigerian Bar Association, NBA; Nigerian Medical Association, NMA, civil society organisations, professional bodies, students, market women and artisans. According to the communiqué, “Nigerians are prepared to resist the decimation of their lives by mobilising professional organisations, labour and the great people to resist fuel price increase that has been tagged subsidy removal.” The communiqué further said if the government could not check corruption in various ministries, departments and agencies, it should admit it and quit for those who have the capacity to do so. While saying the government could no longer be trusted, participants at the Town Hall meeting called for downward review of pump price of fuel to N39.50k per litre, just as it called on government to account for the excess money for fuel price increase since June 1999. “Ngozi Okonjo-Iweala, having demonstrated lack of adequate knowledge of the working of the Nigerian economy, and being the eye of the World Bank ‘policy trinity’ of the elimination of the public sphere, total liberation for corporations and skeletal social spending, therefore should be removed as minister,” the communiqué said. Former Academic Staff Union of Universities, ASUU, President, Prof. Festus Iyayi, in his speech on the occasion advanced reasons why Nigerians should not accept fuel price increase, insisting that the petroleum products market has since been fully deregulated. http://www.vanguardngr.com/2011/12/actual-cost-of-petrol-is-n39-50-per-litre-coalition/ http://thejuristlaws..com/2011/12/actual-cost-of-petrol-is-n3950-per.html |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by seunlayi(m): 11:27am On Dec 30, 2011 |
How do they arrive at the cost of 39.50 1 Like |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by talktrue1(m): 11:28am On Dec 30, 2011 |
They should organise their own Town Hall meeting in Lagos and enlighten us |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by Ishanorun: 11:33am On Dec 30, 2011 |
To know how the price was arrived at, please read this article http://saharareporters.com/article/real-cost-nigeria-petrol-dr-izielen-agbon |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by unphilaz(m): 11:35am On Dec 30, 2011 |
interesting how come 39? |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by free2ryhme: 11:48am On Dec 30, 2011 |
Can we have the breakdown as to how the actual cost of petrol is 39.50? There resides in the piece elements of truth. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 11:48am On Dec 30, 2011 |
Ishanorun: Immediately I saw the Sahara reporters link, I lost interest! Next, |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by slap1(m): 11:50am On Dec 30, 2011 |
It should be cheaper than that. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 11:59am On Dec 30, 2011 |
The Internet makes it simple. http://www.nationmaster.com/graph/ene_gas_pri-energy-gasoline-prices http://www.kiplinger.com/features/archives/gas-prices-around-the-world.html Below are prices for 2005 so you can also compare: http://money.cnn.com/pf/features/lists/global_gasprices/ free2ryhme: So if I just cook up something now that Nigeria has invaded Cameroun, you will say there must be an element of truth in it? We live in an evil world. People lie and deceive when they want to. It is not rocket science. If you really think guys in Saharareporters cars about you or Nigeria, you must be deluding yourself. Nigerian politicians are very bad but what really irks me is that the people that should provide the checks and balance are even the most corrupt. Including, the judiciary, press and civil society groups. I have worked with many civil society groups and they are nothing but Ghana must go groups. Its sickening. Saharareporters are a soft sell and gossip online magazine. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by Kobojunkie: 12:03pm On Dec 30, 2011 |
^^^ The March 2005 link has gas price listed for Nigeria, Lagos at $0.38. In 2005, the exchange rate was at about Naira 100/$1. So, the Naira 39.50 amount reported does seem to work, to an extent, when you consider the 2005 figures then, and also assume the number was for cost/litre. http://money.cnn.com/pf/features/lists/global_gasprices/ The NationMaster link has the price at $0.44, which happens to be about Naira 60 http://www.nationmaster.com/graph/ene_gas_pri-energy-gasoline-prices 1 Like |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 12:04pm On Dec 30, 2011 |
free2ryhme: So if I just cook up something now that Nigeria has invaded Cameroun, you will say there must be an element of truth in it? We live in an evil world. People lie and deceive when they want to. It is not rocket science. If you really think guys in Saharareporters cares about you or Nigeria, you must be deluding yourself. Nigerian politicians are very bad but what really irks me is that the people that should provide the checks and balance are even the most corrupt. Including, the judiciary, press and civil society groups. I have worked with many civil society groups and they are nothing but Ghana must go groups. Its sickening. Saharareporters are a soft sell and gossip online magazine. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 12:13pm On Dec 30, 2011 |
Kobojunkie: The exchange rate was between 132 to 136 in 2005. In 2005, petrol sold at N51 per litre. OBJ increased the price at the end of that year. You do the maths. The countries that sell fuel very cheap are countries like Saudi, Lybia and Venezuela. The advantage those have are low population, full working refineries. You can check out the facts on wikipedia: http://en.wikipedia.org/wiki/Nigerian_naira If you multiply $0.38 by 136, you get 51.68 which was the price of petrol as at 2005 before OBJ increased it at the end of the year. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by emmatok(m): 12:31pm On Dec 30, 2011 |
Leave Saharareporters alone and face the topic. On December 10, 2011, if you stopped at the Mobil filling station on Old Aba Road in Port Harcourt , you would be able to buy a litre of petrol for 65 naira or $1.66 per gallon at an exchange rate of $1/N157 and 4 litres per gallon. This is the official price. The government claims that this price would have been subsidized at N73/litre and that the true price of a litre of petrol in Port Harcourt is N138/litre or $3.52 per gallon. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by paragonpro: 12:35pm On Dec 30, 2011 |
The actual cost of petrol would depend on how much NNPC decides to sell the crude used for local consumption, either refined locally or by foreign refineries. If it is sold at the current $105 - $108, then the price should be about N160. But if it is sold at about $50 then the price should be around the N65 mark. So we need NNPC to tell us how much they produce one barrel of oil and how much we Nigerians should buy it. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by Johnpaul2k2(m): 12:38pm On Dec 30, 2011 |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dustydee: 12:39pm On Dec 30, 2011 |
Petrol should not sell for more than what it sells for now in Nigeria. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by goggs(m): 12:41pm On Dec 30, 2011 |
I just pray that Nigerians are TRUTFUL and don't play politics with this fuel issue. The proponents and opponents all LIE about issues that making up ones mind is so difficult. Check this out; http://kshitij.com/research/petrol.shtml - a comparison of fuel prices in 50 Countries of the world - only Qatar, Saudi Arabia, Afganistan are petrol cheaper http://www.punchng.com/index.php/news/item/9245-ghana-cuts-fuel-subsidies-fuel-rises-to-n184-per-litre Ghana has cut fuel subsidies following an increase in crude oil prices and the depreciation of the Ghana cedi currency, the Chief Executive Officer of Ghana's National Petroleum Authority, Alex Mould, said in a statement on Thursday. Reuters reports that Ghana, which joined the club of oil producers in West Africa last year, has come under increased pressure from the International Monetary Fund to remove the fuel subsidies. The IMF has urged countries across West and Central Africa to cut fuel subsidies, which they say are not effective in directly aiding the poor, but do promote corruption and smuggling. The past months have seen governments in Nigeria, Guinea, Cameroon and Chad moving to cut state subsidies on fuel. Mould said the cumulative effect of the rise in crude oil prices this year and the about 5.7 per cent depreciation of the cedi meant a 25 per cent increase in cedi terms in the cost of procuring crude oil and petroleum products since January. Mould said Ghana had spent about 450 million cedis (N 44,725,608,210.76) on fuel subsidies in 2011. The price change effective from December 29, will see the cost of Liquefied Petroleum Gas increase by 30 per cent while petrol and diesel will go up 15 per cent at pump. Ghana's Minister for Finance Kwabena Duffour said the removal of subsidies would have a positive impact on Ghana's economy. By this increase, according to the NPA, the price of petrol to GNp175.48 (N184.972) per litre; diesel is now GHp 177.09 per litre ((N186.668); while LPG will go up by 30 per cent at GHp 136.19 per kilo (N143.765). |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by Kobojunkie: 12:41pm On Dec 30, 2011 |
dmainboss: Before Obasanjo's deregulation in 2005, the price of petrol was less than Naira 40 per litre. http://www.socialistworld.net/doc/1913 I still think the 0.38 cents per gallon figure is not far-fetched. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by goggs(m): 12:51pm On Dec 30, 2011 |
For Izielen Agbon Izielen Agbon to be correct, NNPC would have to buy its 445,000 barrels a day for N0 (Zero Naira). However that is not the case NNPC pays prevailing international prices for its allocation of 445,000 barrels. If NNPC didn't there will be serious cash flow problems for the nation as 445,000 barrels a day represents about 25% of out total output. The argument has always been whether NNPC is being judicious with its allocation ( with its crude for fuel deals in ivory coast etc), and pays the correct amount to the Federation Account in view that others import what is covered in its allocation |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by otokx(m): 1:08pm On Dec 30, 2011 |
So how come Ghana's price went up? |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by sleek29(m): 1:11pm On Dec 30, 2011 |
I really don't understand what the subsidy is really for, if our refineries are working @ 32% capacity as we know, it means nigerians only pay for cost of crude + refining cost which is not up to N40, now the remaining crude is now refined abroad, is it that we pay for the cost of refining abroad? That should be the only logical way to do things as that would only add a little extra cost to it, do we sell to countries that refine & buy back @ international price?, that should just be a straight swap. I really need a full explanation on how NNPC arrived at their N138 per litre cuz it looks as though they sell the crude @ N0 & buy @ international prices |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by goggs(m): 1:11pm On Dec 30, 2011 |
Here is a post from one "Freedom" posting the Vanguard today. I agree with him. http://www.vanguardngr.com/2011/12/actual-cost-of-petrol-is-n39-50-per-litre-coalition/ Scientific Knowledge and Analytical skill will help solve most of the problems facing Nigerians - not politics, miracle or even religion! A barrel (159litres) of Nigerian BL crude oil now costs ca US$100=(N15,700=) ex Bonny loading terminal. Even if a refinery converts the whole 1 barrel to petrol- impossible- the ex refinery cost will be some N95=/liter. If you get 65% products out a barrel the price will become N145/liter ex refinery gate. So without much politics the cost/price of petrol from Nigeria crude should technically hover around N95= to N 145= per liter excluding transport and profit margin. So fuel subsidy is real in Nigeria. BOKO HARAM problem can be easily solved with more people going into farming and less politics, trading, banking or miracle religion activities. The author is a graduate petroleum engineer with 35 yrs experience. He presently powers his diesel gen set with part heated/40 deg C coco nut oil which he grows in abundance - the cake goes to cat fish. No kidnappers/armed robbers/boko haram has ever noticed/visited him. Another from "Ndulue" we should stop playing politics with Nigerian economy, I have been following this issue for sometime now and found out that a lot of information being passed on to the people are all lies including the above write up that the actual cost of fuel is N39.50. Just yesterday we woke up in Accra with news that the fuel price is now GHC1.75 (N175) from GHC1.52 (N152) per liter and that is it, no strike and life goes on. The gave the same reason that they are removing the subsidy, if at N152 there is subsidy I wonder why we are talking that the cost of fuel is N39.50 which is a big lie. I am pretty much sure that the cost of refining a liter of petrol in Nigeria refineries is more than N200 by the time you put together all their inefficiencies and I bet you that the person that put up the above write up is among those that kicked against the sale of those refineries during OBJ time. One thing about human beings is that they will not vote you of you tell me the truth, they will only vote you when you tell them what they want to hear. I bet you that GEJ would have lost the election if he had told Nigerians that he will remove the subsidy. Let's all look at issue critically and not based on sentiments. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 1:38pm On Dec 30, 2011 |
How some of you can choose to believe a social critic or party official over actual facts is funny. The facts are there as I have posted above. So it doesnt matter what someone here in Nigeria says, they are just trying to score cheap political points and get cheap recognition. World prices for commodities aint going down, they are going up for all products including fuel. Nigeria even stands a far greater risk because our population is expanding astronomically, we have a lot of redundant population and we have no other major source of income. @Kobojunkie Kobojunkie: I posted the link before. Please check it out. As at January 2005, it was N51 per litre. OBJ increased it at end of that year. So do the maths again. I still think the 0.38 cents per gallon figure is not far-fetched. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by ortopazz(m): 1:41pm On Dec 30, 2011 |
Sahara mattaz arising! |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by paragonpro: 1:41pm On Dec 30, 2011 |
As you said everybody is in involved with the art of lying including the vanguard write up you quoted. There is no way coconut oil would be cheaper than fossil fuel as an alternative oil. The cost of land acquisition, growing of coconut, harvesting, processing and extraction of the coconut oil would be huge. If our petroleum engineer is so good at extracting coconut oil, he should sell it at international price. I can imagine what a litre of coconut oil will cost. Besides you would need external energy to process the coconut and extract the oil. Although I do not subscribe to nigerians having crude at N0, I also do not subscribe to it being sold at international prices. At international prices no private refinery located in Nigeria would be able to compete with those located abroad, because of gross inefficiencies in the nigerian environment and the all mighty Nigerian factor. Marketers would still be forced to import, with serious consequences on our exchange rate and inflation. I would recommend government sell crude for domestic consumption at the same price we use for our benchmark in the budget which is about $70. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by samstradam: 1:53pm On Dec 30, 2011 |
otokx: I don't know why nigerians are so unbelievably intellectually lazy, why do you keep comparing yourself with a country that JUST STARTED PUMPING OIL LAST YEAR- WHAT ABOUT OUR 40 YEAR HEADSTART ON THEM? Does common sense not indicate to you that having just started pumping oil they should not have as much infrastructural capacity as one who has been doing it for 40 years+? Or did your own history books indicate to you that Nigeria started pumping 2 million barrels per day immediately we found oil in the 60s??!! What is wrong with us gan sef. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 1:56pm On Dec 30, 2011 |
^^^My broda, we all know Naija is having serious problems but it is sad that people politicize the issues for their own personal interest and then tell us they are doing it for the good of Nigeria. Imagine Akande saying that BOKO ARAM is silent revolution. There is fuel subsidy all right and Nigeria does not produce fuel at N39. The key issues are: 1. All our refineries were built during the Gowon regime. So they are all over 30 years old. The turn around maintainance over the years has been terrible. Now we have reached a very very sorry state. Going forward, we must build new refineries. But that requires private participation as government is surely going to be able to do it. 2. To allow for private participation, subsidy has to go and market forces must dictate what happens. Truth is we will suffer from it for a while but it is still the best thing to do else the future will be worse than Greece |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 1:59pm On Dec 30, 2011 |
samstradam: You are a funny guy, really! What 40 head start? Have you been living in Ukraine? We are on minus headstart! With refineries nearing 40 years and no proper turn around for same period, you say we have a headstart? You must be in dreamland. The truth is, it might be cheaper to actually start from scrath right now than to rely on the stupid infrastructure we have! Haba!! |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by Kx: 2:06pm On Dec 30, 2011 |
To all those quoting Ghana. (1) Does Ghana produce or import fuel? (2) Does Ghana provide her citizens with 24hrs electricity supply for her manufacturing sectors and domestic use unlike Nigeria or not? (3) Does Ghana have sound education system unlike Nigeria or not? (4) Does Ghana have sound,truthful,trusting and working leadership unlike Nigeria or not? Kindly clarify b4 u ask Nigeria do jump because Ghana has jumped. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 2:09pm On Dec 30, 2011 |
Kx: All these stuff you quoted actually supports the argument why fuel subsidy must go, because Ghana actually stands in a better position to subsidize fuel since they have all these facilities in place. If they refuse to subsidize with all these facilities they have, how do you want Nigeria, in her sorry state, to subsidize. They do not need major funding for infrastructural development since they have developed considerably. |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by Kx: 2:12pm On Dec 30, 2011 |
dmainboss:Did they remove subsidy b4 they did all that as your govt has preached to high heavens that the proceeds from subsidy removal will be used to provide some of those basic needs? |
Re: Actual Cost Of Petrol Is N39.50 Per Litre – Coalition by dmainboss: 2:18pm On Dec 30, 2011 |
Kx: Did the current government put Nigeria in this predicament? We got where we are under military rule. Just like Ghana found themselves before democracy took over. So whats your point? The present government inherited the mess. Do you think if Ghana had been producing oil during their military era and subsidizing fuel, they would not have removed it after the civilians took over? Just to correct that it is not only about building infrastructure. The subsidy right now is actually being funded from borrowed funds. that is living dangerously. Nigeria is spending money it doesnt have. |
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