HNosegbe:


Ok... listening.



If the point you're trying to make here is that diesel prices don't affect Nigerians then you're wrong. This is because the industries that use diesel factor in the cost of diesel into their cost of production and pass it on to final consumers i.e. you and me.

So we're told - which should imply that the retail price be subject to market forces as well as cost of production.

How can this be ascertained when we can see prices fluctuate in advanced countries due to market forces and yet remain constant in Nigeria?

But earlier in the thread this was what you said:

But we can see other countries taking steps to rein in cartels and curtail their activities (US China, India and Japan to mention but four examples). What is our government doing?

http://en.wikipedia.org/wiki/Competition_law

Difficult to believe, given the questions raised in this thread.

buggaboo:


It's similar to the deisel situation isn't it.
The gov has created an open market for deisel but you are still heaping the blame for the high cost of deisel on them.
Why not blame the greedy Nigerians who are involved in price fixing.

Sunnybobo3:


Diesel has been fully deregulated. So, govt no get hand for there again.

HNosegbe:


And again my argument is that a deregulated market responds to market forces. Why has the price of diesel remained unchanged throughout the recent period of falling crude prices?

And when you say "government no get hand for there again" what you mean is that the government no longer sets prices. It doesn't (or rather shouldn't) give diesel marketers free rein to set prices of their own choosing, exploiting the final consumer in the process.

HNosegbe:


Greed is human nature. Virtually every human being (yourself included, most likely) will take advantage of any situation to maximize profits at others' expense if presented with the opportunity. It is the responsibility of governments (acting on behalf of the people) to make sure that doesn't happen.

Seun:
Good question. I think the drastic fall in the value of the naira is a factor. Let's allow unbiased industry insiders to answer the question. Besides, in some places the rice of diesel has fallen to 137/l.

Sunnybobo3:


It boils down to greed on the part of Nigerians.

Seun:
Good question. I think the drastic fall in the value of the naira is a factor. Let's allow unbiased industry insiders to answer the question. Besides, in some places the rice of diesel has fallen to 137/l.

buggaboo:


Well, you do have a valid point.
Government should monitor the market to ensure that there is no price fixing, but that is different from insinuating that they are the ones running the cartels.

Demdem:


The cartels are running the govt by proxy and that explains why it seems as if govt is powerless regarding them.
The more reason why I will continue to be against doing the same for petrol sector. Deregulation in itself is a good thing but can be a curse if allowed to be ran by cartels and that explains why a govt agency should be tasked in curtailing their excesses.
In telecoms, we have NCC. They seems to be working.
Deregulation of diesel isn't working as envisaged as regards competition between players, why do u think it will work for petrol, a far bigger fish?

Demdem:


Specifically, people like chief Ayeni who singlehandedly gave Jonathan 2 billion naira as campaign gift and has substantial interest in the industry. These are the kind of gluttons Jonathan can not sanction for the betterment of his country men. These are the kind of greedy men u should refer to and not the average consumer out there.

Sunnybobo3:


How about Tinubu of Oando?

Demdem:


All of them combined together involved in the greed.
Jonathan in his daft state has refused to restore order to the system thereby allowing them to feast fat on the populace.

buggaboo:


NCC is trying but the telecoms companies are still getting away with murder.

I agree, it's an ongoing stuff. Now imagine when there is no NCC and it's free for all.

It is very easy for the cartel to corner the petrol market through filling stations but I still don't understand why there is market inefficiency for diesel.
It just looks like a glorious opportunity for new players to import diesel and undercut the so called cartel with their high prices, after all diesel distribution is less dependent on filling stations.

Do u think it's that easy to become a major importer and break in? Do u know the conditions set by the NNPC? Do u think u will even succeed without being in the good books of these people? U won't even receive any certificate or authority to commence business especially if ur motive is known.

Sunnybobo3:


Do you want him to send soldiers with koboko into the mark to flog people to sell their commodities even below cost price?

Demdem:


Stop being childish with ur thought. He is the president and appoints a minister who is also in charge of the regulating agencies like dpr, pprra etc or whatever u have. What stops him from tasking them to bring order to the system? Has he even given the instruction?

Sunnybobo3:


It's a free market economy bro. Let competition bring down the price.

Unlesd you are telling me that the govt is deliberately not giving enough people licence to import diesel.

Sunnybobo3:


It's a free market economy bro. Let competition bring down the price.

There is no competition between the parties instead what we have is cooperation to fix prices for their betterment and detriment of the people.

Unlesd you are telling me that the govt is deliberately not giving enough people licence to import diesel.

The issue isn't even enough licence but monitoring the activities of those u Av given licences. NCC monitors activities of telecoms players and to an extent they are succeeding. Who is doing the same for diesel theives?

HNosegbe:


Please can you tell us some of these places? I haven't seen any.

tenry:

Diesel is now 99naira from the depot, with the cost of transportation (2naira or 2.5naira) that ll be around 82k. The one I bought for my boss on monday was 102.5 landed cost. Presently, we are seling at the rate of 125 naira. Come to Ipaja axis. You ll get it at that rate. Diesel has come down too. I am not doubting d fact that some ar still selling 140 to160, perhaps they wanna finish their old stock whc they bought at a very high price.

HNosegbe:


Interesting. If you don't mind I'd like to know what particular oil marketer you work for. Or alternatively you could just mention the specific area/street so that I can check for myself. Thanks.

tenry:

Virtually all d station around Ikola axis. If you buy in bulk, let's talk to strike a deal. The cost of supplying to you ll not even be up to 120. But if you ar buying little just to run your gen at home, pls check independent filling stations in ikola, ipaja.

tenry:

Diesel is now 99naira from the depot, with the cost of transportation (2naira or 2.5naira) that ll be around 82k. The one I bought for my boss on monday was 102.5 landed cost. Presently, we are seling at the rate of 125 naira. Come to Ipaja axis. You ll get it at that rate. Diesel has come down too. I am not doubting d fact that some ar still selling 140 to160, perhaps they wanna finish their old stock whc they bought at a very high price.

Demdem:


All of them combined together involved in the greed.
Jonathan in his daft state has refused to restore order to the system thereby allowing them to feast fat on the populace.

tenry:

Diesel is now 99naira from the depot, with the cost of transportation (2naira or 2.5naira) that ll be around 82k. The one I bought for my boss on monday was 102.5 landed cost. Presently, we are seling at the rate of 125 naira. Come to Ipaja axis. You ll get it at that rate. Diesel has come down too. I am not doubting d fact that some ar still selling 140 to160, perhaps they wanna finish their old stock whc they bought at a very high price.

eaglechild:

In other words Buhari and his cronies are even more corrupt.
Since Tinubu the forerunner has done nothing with Oando.

eaglechild:

Now the "witches" can shut up.

HNosegbe:


Yeah sure... everyone who asks questions of your messiah's administration is a "witch". It is only "witches" that dare to ask questions of your lord and savior, the perfect GEJ and his excellent transformational administration.

eaglechild:

FOI bill was approved under GEJ.

All forms of free press was stifled by Buhari.

So go figure who doesn't like questions being asked.