OAUTemitayo:
Did you know that ghana that also imports refined crude reduced their own pump price

Do Ghana subsidize her fuel

BlackTechnology:



This below is what Fashola missed.

at cost N100 and with a N30 intervention, the buyer is to pay N70.
At cost N80 and with the same N30 intervention, there is no justification for the buyer to still pay N70, he is to pay N50. Let's put the devalued naira into consideration with 8% change in value of the dollar to naira, the buyer will pay between N53-55. That is Fashola's point!!!

If the Government want the N97 price to remain constant, then it must reduce the money appropriated for the subsidy without change in the subsidy itself. In your own scenaro, the interventionists will have to pay N10 naira to the merchant and no more N30

barcanista:
at cost N100 and with a N30 intervention, the buyer is to pay N70.
At cost N80 and with the same N30 intervention, there is no justification for the buyer to still pay N70, he is to pay N50. Let's put the devalued naira into consideration with 8% change in value of the dollar to naira, the buyer will pay between N53-55. That is Fashola's point!!!

If the Government want the N165 price to remain constant, then it must reduce the money appropriated for the subsidy without change in the subsidy itself. In your own scenaro, the interventionists will have to pay N10 naira to the merchant and no more N30

Gbam.

Obiagelli:

They are yet to return it since October, can you tell me what is going on.


And i ask again, the previous subsidy cuts, how has it helped industry and agriculture?

Haba who told you they have not kept it well.

Why GEJ is saying it now is because if he doesn't it means legally that money will be spent on subsidy therefore we will see a reduction in pump price which is not the best option


Instead of reducing pump price with subsidy money, invest it into other productive sectors like agriculture and industries

OAUTemitayo:
Did you know that ghana that also imports refined crude reduced their own pump price

. Plz tell them.

Goodluck Jonathan should be asking questions of Ngozi, Diezani and Aganga over this matter.

barcanista:
at cost N100 and with a N30 intervention, the buyer is to pay N70.
At cost N80 and with the same N30 intervention, there is no justification for the buyer to still pay N70, he is to pay N50. Let's put the devalued naira into consideration with 8% change in value of the dollar to naira, the buyer will pay between N53-55. That is Fashola's point!!!

If the Government want the N165 price to remain constant, then it must reduce the money appropriated for the subsidy without change in the subsidy itself. In your own scenaro, the interventionists will have to pay N10 naira to the merchant and no more N30

Guy see this economic angle below.

BlackTechnology:


If subsidy is still paid, it means we will see a reduction in pump price which is not the best option

Instead of reducing pump price with subsidy money, invest it into other productive sectors like agriculture and industries

That #800b oil subsidy should be invested into other productive sectors like agriculture and industries

BlackTechnology:



Haba who told you they have not kept it well.

Why GEJ is saying it now is because if he doesn't it means legally that money will be spent on subsidy therefore we will see a reduction in pump price which is not the best option


Instead of reducing pump price with subsidy money, invest it into other productive sectors like agriculture and industries

You can spend outside the budget, let gej remove the subsidy now and return how much they have saved or reduce pump price and still return the amount they have saved in the past few weeks.

Still u haven't answered my question on previous cuts and positives for other sectors.

Obiagelli and barcanista

Which will you choose

1) leave the subsidy and use it to reduce pump price

Or


2) Remove the subsidy and Reinvest it into other productive sectors like agriculture and industries.

Obiagelli:

You can spend outside the budget, let gej remove the subsidy now and return how much they have saved or reduce pump price and still return the amount they have saved in the past few weeks.
Still u haven't answered my question on previous cuts and positives for other sectors.

BlackTechnology:
Obiagelli and barcanista

Which will you choose

1) leave the subsidy and use it to reduce pump price

Or


2) Remove the subsidy and Reinvest it into other productive sectors like agriculture and industries.

I guess we are not going anywhere with this argument.

1. You are yet to answer how the previous subsidy cuts has affected agriculture and industries

2. You have refuse to address how subsidy removal affects inflation and interest rates for the said agric and industry to thrive.

OAUTemitayo:
Did you know that ghana that also imports refined crude reduced their own pump price

I believe their petroleum sector to be fully deregulated

barcanista:
With the present situation, the subsidy is not a bad idea, the problem is sincerity of government. The corruption, fiscal indiscipline, executive rascality and poor fiscal policies of the government are the problems of this country. If the aforementioned can be put away with, there will be no need for the subsidy as the people will be benefiting a lot from the system, the masses will then see the subsidy as unnecessary. As for now, the subsidy is going nowhere

BlackTechnology:
Obiagelli and barcanista
Which will you choose
1) leave the subsidy and use it to reduce pump price
Or
2) Remove the subsidy and Reinvest it into other productive sectors like agriculture and industries.

the above quote is my position on subsidy regime and it should answer ur question.

Bayswater:


Are you kidding me? What lowest pump/price reduction in Europe and usa are you talking about? FYI, taking Britain as an example petrol was sold at around 120p (£1.20/ N330 approx) per litre, it now cost around 118p per litre! That's a reduction of 2 effin pence per litre. What difference does that make? Is that what you called reduction? C'mon let's be reasonable here.

Coming to the cost of oil production from shale formations, small scale producers based in the shale sweet spots of the usa can even produce a barrel of oil for as low as $35 per barrel ( how cheap can it get) and in other areas it is produced at about $67 - $70 per barrel which us still cheaper than the break-even price of producing crude oil in most places in the usa.

In the summer months it was sold at 131p and its now 118p even though more than 50% of that cost is in duties to the government. Did you consider prices in USA too?

I do not disagree with your analysis on shale. What I disagree with is your statement that some people consider shale cheaper. The breakeven price for more than 50% of shale production is above $50pb
http://www.bloomberg.com/image/iXaVTKmyvJfo

nonen:
Yea. Fashola has the local logic correct. However there's an expected increase in fuel pump price due to the dollar-naira exchange rate disparity. Since the naira is losing weight against the dollars, the importers will have to pay more to import the product. Fashola logic would have worked only if we refine the crude here.

But goods are cheaper in international markets due to fall of oil prices.
Don't support putting hardship on poor Nigerians. With your local logic

Though this is coming from unconfirmed source ,
pdp wants te schemishly use it for 2015 election.
It sure definitely gonna cut down.

The price would ve been reduce if Yaradua was still alive.

Obiagelli:

The lazy way out is subsidy most go. Sensible countries will refine and export finished products.

oga ur govt cannot operate simple courier services, talkless of a refinery. You don't realise quota systems and federal xter (if u knw what that is)will nvr let any sector handled by govt work. Meritocracy is the only way systems thrive.

revolt:
oga ur govt cannot operate simple courier services, talkless of a refinery. You don't realise quota systems and federal xter (if u knw what that is)will nvr let any sector handled by govt work. Meritocracy is the only way systems thrive.

Worked in the past, lazy way out never pays on the long run.

nonen:
Yea. Fashola has the local logic correct. However there's an expected increase in fuel pump price due to the dollar-naira exchange rate disparity. Since the naira is losing weight against the dollars, the importers will have to pay more to import the product. Fashola logic would have worked only if we refine the crude here.

why is d Naira always falling against d dollar? Why has it fallen drastically at a time when we should benefit from the price of oil which has dropped globally?

Prices are sticky downwards in nigeria. Once they move up, they never come down. But I think the reaction of our people can make the price of fuel come down.

Saying Jonathan do the needful always makes me Lol.
Jonathan do the needful,you want worms to grow legs.
Guy is there and clueless.

barcanista:
Who determines the price of the subsidy bill? Is it the marketer or the price of production in the market? What constitute production price? Who determines what is to be paid by consumers after what is due for subsidy has been paid? Definitely, you like most people on this thread(especially jonathanians) have no idea of the subjject. You just post because you have mb

this is how u clowns talk rubbish and whine away feeling brilliant. Now lemme break it down in lame mans illustration.

Otedola obtains licence to import fuel for nigeria, he goes to UK refinery and buys at a competitive price, as a biz man he must make profit. Federal govt has agreed to buy his stocks and subsidize for nigerians( his price). U r asking tht they keep buying from him while they increase the amount subsidized ie make it cheaper for us because oil price has reduced, not takin into consideration tht the UK refinery can decide not to reduce its price. What's ur solution in this scenario?

The average Nigerian is a fool.

This same Fashola alongside his co governors wanted a total removal of fuel subsidy.

… ITS DIVERSIONARY AND UNACCEPTABLE – NLC 

The stage seems set for a major clash between the Nigeria Governors Forum and the various workers Unions in the country over the ability or otherwise of State governments to implement the Act approved by the National Assembly.

This followed the resolution of the governors after their meeting in Abuja to call on the Federal Government to as a matter of necessity carry out total removal of petroleum subsidy.

The governors equally called for a critical review of the Revenue Allocation Formula to enable the States implement the N18,000 minimum wage approved by the Federal Government for Nigerian workers through an Act of the National Assembly that was signed into law by President Goodluck Jonathan.

Rising from its meeting in Abuja on Tuesday night, the Governors Forum stated that while it recognised the amended Minimum Wage Act as a valid law, its implementation would however pose considerable challenge to a number of States.

Accordingly; the Governors Forum resolved to among other things engage Labour in a holistic manner with a view to jointly agree to a common implementation framework.
 

A communiqué issued at the end of the meeting which was signed by oits chairman and Rivers state Governor, Rotimi Amaechi stated in part; "On the issue of the new minimum wage, members Review the Revenue Allocation Formula; immediate removal of the petroleum subsidy; the constitution of a committee to determine the financial implications and work out the implementations details; examine the realities this law imposes on the states and its implications for the workers."
In a swift reaction, the Nigeria Labour Congress (NLC) described as diversionary and totally unacceptable the new conditions being introduced by the governors stressing that security votes of the governors are far higher that what s required to meet the approved salaries.

Acting National Secretary of the NLC who spoke on behalf of Labour noted that there is no state in the country that cannot afford to pay the N18,000 as minimum wage.

According to Lekanfa; "The minimum wage isn't dependent on anything. It has been signed into law and they swore on oath to obey the constitution and laws of Nigeria.

“The other issues, such as review of Revenue Allocation Formular and removal of petroleum subsidy are diversionary. There is no state government that can't pay minimum wage.

“How can they be talking about removal of petroleum subsidy, when the price of kerosine has been deregulated and Nigerians can't get it at the retail outlets. We will not accept it, we will not allow them to add to the burden of the already over improverished Nigerians. 

“Let them look inward. We want to advise them that no group, in the name of Nigeria Governors should gang up to heat up the polity. To remove petroleum subsidy is to ignite the system."

Obiagelli:

Worked in the past, lazy way out never pays on the long run.

if the lazy way out is what is still helping our telecoms sector then the Lazy way out is what we need. In the long run I dnt see our telecoms sectors plummeting in a 1000yrs.

Fashola, please reduce the price of toll-gates.

This is a waste of time argument. You cannot reap where you never sowed. Yaradua made the same mistake, reducing pump prices, because the price of crude fell to the $40s. Only to draw down the excess crude account, to make up the difference in revenue shortfall, when crude oil did what it has always done. Which is go up and down.

atlwireles:
This is a waste of time argument. You cannot reap where you never sowed. Yaradua made the same mistake, reducing pump prices, because the price of crude fell to the $40s. Only to draw down the excess crude account, to make up the difference in revenue shortfall, when crude oil did what it has always done. Which is go up and down.

Billyonaire:
Fashola, please reduce the price of toll-gates.

BackDatAssUp:
The average Nigerian is a fool.
This same Fashola alongside his co governors wanted a total removal of fuel subsidy.

revolt:
if the lazy way out is what is still helping our telecoms sector then the Lazy way out is what we need. In the long run I dnt see our telecoms sectors plummeting in a 1000yrs.

Gbam


Subsidy must go and reinvested into other productive sectors

Now that our export market has reduced with the US not buying from us, I think it is high time we not only removed subsidy completely but also go a step further by ensuring that retail prices be a source of both revenue and profit earner for govt.

The oil will not be there forever. One day it will dry up. How is the govt of the future without oil reserves then pay for subsidies then?

This generation clamouring for cheap fuel to power their fuel guzzling inefficient tokunbo cars will go down as the baby boomer generation in the US who are being blamed of monumental waste at the detriment of the future generation.

BackDatAssUp:
Now that our export market has reduced with the US not buying from us, I think it is high time we not only removed subsidy completely but also go a step further by ensuring that retail prices be a source of both revenue and profit earner for govt.

The oil will not be there forever. One day it will dry up. How is the govt of the future without oil reserves then pay for subsidies then?

This generation clamouring for cheap fuel to power their fuel guzzling inefficient tokunbo cars will go down as the baby boomer generation in the US who are being blamed of monumental waste at the detriment of the future generation.

That's the question most of them never contemplate. Some people will even propose selling crude oil at cost to local refiners, because WE ARE AN OIL NATION.

atlwireles:


That's the question most of them never contemplate. Some people will even propose selling crude oil at cost to local refiners, because WE ARE AN OIL NATION.

That's why I aptly describe them as yeasts cultures.

revolt:
if the lazy way out is what is still helping our telecoms sector then the Lazy way out is what we need. In the long run I dnt see our telecoms sectors plummeting in a 1000yrs.

Telecoms, gas? Smh.

barcanista:
What iis the %Change in the Price of the Dollar and what is the %Change in the price of crude oil? My friend this is a very simple economics.

At price $100 per barrel, government spends 1trillion on subsidy bills. Naira/Dollar was N165.

At price $70 per barrel, government cannot justify spending the same 1 trillion on subsidy bills, despite the devalue of the naira to 178 per dollar. The %Change can never justify it.

We have 30% reduction in the price of the crude oil, with a 8% increament in the price of the dollar. The disparity is just glaring. The price of petrol must go down or the appropriation on subsidy must go down should the price of petrol remain constant.

the simple solution is for govt to stop paying the importers in essence stop the subzidy program. Is this logic so rocket science for the typical negro..... Na wa o . You complain they're spending trillions on subsidyie they re corrupt the same corrupt govt decides they wanna stop the subsidy payment, then u clowns go and occupy ojota unknowingly sponsored by the marketers..