|
GNature (m)
|
when will these stop being a ready excuse?
1. If we had enough refining capability in Nigeria for local consumption, then I think it'll help a whole lot pricewise. Unfortunately, we have to import refined oil and the price of this refined oil is out of the hands of the Nigerian government. 2. When someone is giving you something for free (i.e. subsidizing), you can't dictate to the person the terms at which you want to receive the gift. This is really the big picture in a nutshell. |
|
|
|
|
|
davidylan (m)
|
But GNature, the US govt subidises farm produce yet food prices are not hitting the roof. Why is this happening to us?
|
|
|
|
|
|
GNature (m)
|
Because the food issue is all internal (within the US.), there is no external pressure.
The US. produces oil too, lots of it (Texas, Alaska etc), but it does not have enough for the whole country, so it must import. The importation (external pressure) is what makes the oil price sky high.
If we could produce and refine all our oil for local consumption, then the price can be reasonable. Unfortunately, we must import refined oil and we have no control over the refiners' prices.
|
|
|
|
|
|
davidylan (m)
|
we've been doing turn around maintenance (TAM) for the refineries ever since i was in primary school! them never finish?  |
|
|
|
|
|
GNature (m)
|
My brother, even if the refineries were all producing at full capacity, we'll still fall short of national demand.
Our country is run as if the population is going to remain stagnant forever.
|
|
|
|
|
|
Donzman (m)
|
But GNature, the US govt subidises farm produce yet food prices are not hitting the roof. Why is this happening to us?
Answer is simple, Government is incompetent. The Nigerian Government is incompetent, it cannot maintain its refineries so it is not able to carry out effective subsidization since the refineries are producing well, NOT MUCH. The deal is supoposed to work like this, the Government announces a fixed price of fuel (often lower than the market price), and whatever the difference is, the Government will pay the suppliers (foreign or local). This subsidization is supposed to be financed using fuel export revenues but unfortunately we're Nigerians where the Government cannot implement simple ideas. There are many subsidization programs around the world, the US. Agricultural plicy or the EU's CAP. You have to ensure that you produce enough domestically AND restrict imports, so you can then be able to implement your domestic program with little external pressure. Nigerian Government is not able to do this or maybe they're able to, but they just want the masses to pay more while the Government pays less (flabergasting). @GNature Your theory beats common sense, importation pressure should drive prices down. Importation means there are more goods coming in (supply has increased), so prices should go down. Isn't this common sense?. . .Think about it, if fuel is more expensive abroad, why should you buy it abroad i.e. import?. . .No reason! Imports always drive market prices down, yo go outside to buy because it is cheaper. If there's scarcity of fuel, it means domestic prices will be high, you have to import in order to counter demand pressures. This means that the Government has to pay less on subsidization. |
|
|
|
|
|
GNature (m)
|
Donzman, the cost of production goes up when the oil marketers have to import refined oil. There is the cost of refining, then there is the shipping cost. Above all, the oil marketers have to make their own profit.
This rise in additional cost of production is what is transferred to the consumers in the form of oil price increase. When the govt fixes prices arbitrarily, the oil marketers sell the oil in the black market until the govt gets around to bringing up the prices to a level that can sustain them.
|
|
|
|
|
|
GNature (m)
|
The deal is supoposed to work like this, the Government announces a fixed price of fuel (often lower than the market price), and whatever the difference is, the Government will pay the suppliers (foreign or local). This subsidization is supposed to be financed using fuel export revenues but unfortunately we're Nigerians where the Government cannot implement simple ideas.
I agree with you 100% on this ! This is exactly how it's supposed to work.
the Government announces a fixed price of fuel (often lower than the market price), and whatever the difference is, the Government will pay the suppliers (foreign or local).
What happens when the suppliers' cost of production goes sky high (e.g. as a result of importing refined oil) and the govt doesn't want to increase the fixed price because it doesn't want to burden the masses ? ANSWER > fuel scarcity !! The suppliers just sell it on the black market so they can sustain themselves.
This subsidization is supposed to be financed using fuel export revenues
Good point Donzman. But where does the government draw the line ? If the subsidization is $3 billion, $10 billion or $25 billion per year, do we just continue to pay ? Should we just be using money that could be used for other purposes to subsidize oil ? No school, No roads, No electricity, but really cheap oil. You get my point ? |
|
|
|
|
|
Donzman (m)
|
Well, what sort of Government starts up a program it cannot sustain?. . .Increasing fixed prices is one of the ways the Government gets rid of responsibilities since it implies it has to pay less to make up for the price discrepancy. If the Government does not want to subsidize anymore, it should tell us. What happens when the suppliers' cost of production goes sky high (e.g. as a result of importing refined oil) and the govt doesn't want to increase the fixed price because it doesn't want to burden the masses ?
ANSWER > fuel scarcity !!
You're acting like fuel purchased domestically does not need to be transported too. Even though, we do not import crude oil, we import refined fuel so there are no extra refining costs atleast as far as I know. This leaves us with only transportation costs, if transportation costs are too high, the suppliers might as well buy domestically but they're importing which implies that even with transportation costs, foreign fuel still ends up cheaper. You are arguing that they'll import the more expensive foreign fuel because they can sell it in the black market. This result is due to poor planning on the part of the Government. If there is scarcity and fuel needs to be imported, the Government should stand ready to cover the extra costs in order to maintain prices at the same level. I do not know alot abot the Nigerian oil industry but it is common sense how subsidizations work, they're expensive and often unpredictable. I suggest that the whole process be reformed for our own good because the whole plan broke down with our refineries. If we were exporting enough fuel, the Government can use the extra funds to subsidize local consumption of gasoline but how can we export when refineries are dead? |
|
|
|
|
|
don bomb (m)
|
i cry for my country nigeria because there is nothing like sincerity there.
just few days ago some billionaire business men(nigerians) bought the refineries,
today government without the consent of anybody rushed to hike price to N75/litre.
parting gift/ welcome gift or thanks for allowing buy your refineries, only God knows.
nigerian economy is too poor for nigerians to even pay the same bills with south africa
not talk of america. south africa generates more than 20,000 meagwatts of electricity,
in nigeria they are still promising us 6000 megawatts.nigerian president is highly
incensitive and highly undemocratic in hiking of fuel prices.
The only way common men like us enjoy national cake is when government subsidize
such things as fuel using excess crude funds. check out the latest on some governors and
their foreign accounts and asserts, u will agree with me that excess crude funds sent to
states goes into pockets leaving millions of nigerian graduates on the street searching
forever for even N5000 job. God help us
The present government in nigeria met fuel at N20 per litre , and leaving, pegs it at N75 per litre.
My question is why must the incumbent president do this? is this of national intrest or because
of his intrest in the sold refineries? Why didnt he allow the incoming president decide on this issue?
I trust my man Alhaji Musa Yar' dua, a man of few words and many actions, may he lead us to the
promise land. our moses is out of the scene.
|
|
|
|
|
|
otokx (m)
|
In the past 8 days Petrol in Port Harcourt has hit an abnormal N150 per litre from retail point. Femi Kuti sang in one of his songs that "Obasanjo will kill Nigerians finish". Personally, I think our lackadaisical attitude toward many things has got us to the point. A well deserved parting gift.
|
|
|
|
|
|
|
|
Wilfem (m)
|
I even learnt that it'll be further increased to N85 per litre when Yar'adua takes over.
|
|
|
|
|
|
celemel (m)
|
These are political tricks PDP is playing. It is a strategy to change the legitimacy crises hanging around Yar'adua's neck. Let me tell you guys how this would play out. We shall cry a lot, and ask that something starts to happen. Then, Yar'adua would come on air soon to say, ", fellow Nigerians, I have listened to the hues and cries of the suffering masses and as a listening government elected by the people, bla, bla , bla, I have directed the reversal of the price of petrol to N70 naira/litre. I promise to run a people oriented govt, bla, bla, bla, May Allah bless Nigeria, ", and we'll all jump up and say "halleluyah!, the Messiah is here!". Its the petty politics people play with us. By their calculation the act of reversal or 'reduction' of fuel price would portray Yar'adua as a good man and would then earn him the 'Ngige' effect (where he didnt win an election but was loved by the people).
Nothing is impossible in Naija! Watch out!
|
|
|
|
|
|
GNature (m)
|
Celemel, I think your analysis could be right. I guess we just have to wait and see.
|
|
|
|
|
|
lafile (m)
|
N75 per liter? is that new? The only place where we've ever bought fuel at the regulated N65 per liter price is Lagos. It is economically impossible to buy fuel at N65 per liter anywhere else. Why? Because we import and it lands at Lagos. Most Oil marketers get fuel into their tanks at N63.5 or N64 per liter. It costs N1 to transport it within Lagos. N12 to take it to P/Harcourt N15 to Kano.
We have muddled up and politicised the fuel issue for so long that the only solution requires us to suffer for a while. The Govt. has to take its hands completely out of the fuel situation for any sanity to prevail.
|
|
|
|
|
|
ehi4life (m)
|
This is a preview to what to expect, but i assure you it would have been worse, if there was also a change of philosophy
|
|
|
|
|
|
GNature (m)
|
.
It is economically impossible to buy fuel at N65 per liter anywhere else. Why? Because we import and it lands at Lagos. Most Oil marketers get fuel into their tanks at N63.5 or N64 per liter. It costs N1 to transport it within Lagos. N12 to take it to P/Harcourt N15 to Kano.
Thank you oo, this is the point I was making earlier. You have reiterated my point. |
|
|
|
|
|
celemel (m)
|
@ lafileN75 per liter? is that new? The only place where we've ever bought fuel at the regulated N65 per liter price is Lagos. It is economically impossible to buy fuel at N65 per liter anywhere else. Why? Because we import and it lands at Lagos. Most Oil marketers get fuel into their tanks at N63.5 or N64 per liter. It costs N1 to transport it within Lagos. N12 to take it to P/Harcourt N15 to Kano. This post is not true. I live in Calabar and I have never bought fuel higher than N65 before, and I've been mobile in the last 3 years. All major marketers sold fuel at N65, NNPC, N64 and others N75. I buy from the majors and they never increased their prices until now. The last time I drove to Lagos from here, I bought Fuel at Asaba at N65, in march. I think you are committing a fallacy of generalisation. Big grammar, huh!?!? 
|
|
|
|
|
|
Ifeniyi22 (m)
|
the most annoying aspect of this devilish scheme is that the govt sneaked like a thief in the night.One day i buy fuel for 65 naira, the very next money BOOM 75 naira!!!!!!!!!!!!
This is absolute madness.the very height of insensitivity.lets leave all that nonsense of leaving the market forces to determine the prices according to demand and supply.WHAT IS THE MINIMUM WAGE IN THE COUNTRY!!!!
The govt truly and surely does not expect workers earning the minimum wage to drive a car even if they are given one as a :'(gift.
The is obj's parting gift, actually symbolizes what he stood for during the horrible 8years that he spent
|
|
|
|
|
|
sartorius (m)
|
It is totally unacceptable for the goverment to hike fuel prices, deregulation was to allow "market forces" come into play, so why dictate prices, this action will surely cause inflation and weaken the purchasing power of an ordinary nigerian, Imagine 6k to fill up ones tank, e dey pain me o, he obviously is enriching the marketers and importers, i am sure he has business interest
|
|
|
|
|
|
vikiviko (m)
|
We can only that the new administration of Yar'adua and Goodluck will normalise and stabilise the injustices and inhumanity of the outgoing administration.
|
|
|
|
|
|
Christino (m)
|
It's as simple as this, the cash budgetted for oil subsidy should be used to revive the refineries, but instead, these baboons built their personal refineries outside the country, send our raw petroleum there and get their pay in crude oil, then send the stupid remainder back to us to purchase at a higher price.
They say we do not have enough power to support industries in Nigeria, Are there more industries there than we have in the US/China/Germany or Even Taiwan? All the major companies are gradually shifting their HQs to Ghana all because of cost of diesel and the baboons here are busy importing Generators and distributing diesel at breakneck prices.
They say our refineries cannot cater for our needs, does that mean we are hopeless? will other developed countries say the same?
They always let us know the only solution is to SUFFER and Nigerians have learnt to drill a hole in the wall when pushed to it, they'll never retaliate, thank God i'm a lagosian and not a Nigerian
STUPID BABOONS, pack your bags and go so your new boys can come in and SUCK MORE out of us. God Punish una.
|
|
|
|
|
|
Backslider (m)
|
One simple question Will you set a Refinery In Nigeria and sell at EVEN N75 when in other places Like Ghana they buy at N500.
The Refineries will come to Ghana because your price is not Good.
The cost of Production and mantainance of the Refinery has a lot loopholes for stealing only Private companies can handle this and make a profit.
If I gave you a 1billion you think you like to create a refinery ?
I will not want to create a refinery.
|
|
|
|
|
|
lakeside4love (m)
|
God will save us
|
|
|
|
|
|
lobinoxebe (m)
|
i am tired of this country, i will rather die in iraq tan to die in this country,
|
|
|
|
|
|
mimiko (f)
|
Am getting frustrated, it is now that my car chops fuel like no tomorrow that the fuel price has been increased. Who do i lay my frustration on? the gov? or myself for not been able to replace my old car,Did someone say Demand and supply? there has always been high level of Demand out there.Anyway maybe when we all use BRT buses we wont feel the increase in fuel price
|
|
|
|
|
|
moondust (m)
|
Baba dey use that one do himself send off. did u ever think that goat had your interests in mind?
|
|
|
|
|
|
|
|
Soundmind (m)
|
It is a shocking gift. Though in the East, the price have been between N75 to N90. Yesterday it was N85 in Enugu.
All this economic reforms have not come with human face. The common man have not benefitted from it at all.
At last, Obasanjo have just increased our hardship. He is leaving Nigeria worse than he met it. May we never get a president like him again
May God help us in Jesus Name.
|
|
|
|
|
|
Ajuwon (m)
|
Amen to your prayers ooooooooo. i just wish Yaa'Adua will not imitate baba . infact i just wish he will not still increase the fuel price to #100 per liter by tomorrow morning as his final bye bye
|
|
|
|
|
|
Aneef (m)
|
This sudden increment na die o because i don't know what justification the govt will attribute to this.I jus pray and wish that this will not be the end result of the whole issue because things are already tense in the country so why aggravating it with fuel increment now? GOD WILL DELIVER US OOOOOOOOOOOOOOOOOOOOOOOOOOOOO.
|
|
|
|
|
|
![Nairaland [Nigerian Forum] Home](http://www.nairaland.com/Themes/default/images/english/home.gif)
Author
what a saddening way of saying bye bye to Nigerian's, I expected something better than increment in fuel price. Above all my joy is that Baba Iyabo will not exceed tomorrow may 29 and to God be the glory because on amazing thing about we Nigerians in that we are hard survivors, we will definitely survive anyway, anyhow. i just pray that Yaa'Adua will hearken to God's instruction and work according to his directives so that Nigerian citizens will be affected by his regime in a positive way
