₦airaland Forum

He is just articulate. A less articulate guy would just begin to run and get hit by the groundnut.

Show us the interior

zeenaman:
Personal opinion:

The relationship between cars and Petrol is complementary in nature. Complementary in the sense that, one is needed to augment the other, just like garri and kulikuli.

Going by basic economics principle, there is an inverse price relationship between complementary goods i.e an increase in the price of one results in decrease in the demand for the other. With this, it is conceivable that with increase in the price of petroleum, there will be less demand for cars, hence result in price crash occasioned by excess supply over demand.

Also, from the angle of the Federal government, the rich benefit more from the subsidy. People with ten cars will now find it unfunny fueling the convoy, and this may result in selling off some of the vehicles. This should further increase the supply of cars and drive down the price.

Let's talk about this, do you see the price of cars crashing? Let's leave out the Nigerian factor, corruption, and base our argument on fact.

in my opinion, the number of cars to be sold off by the rich will be insignificant to the number of average persons to by them.

That is to say the if 100,000 cars are to be sold, there will be up to ten million people ready to buy. So it will have not impact on the prices of vehicles.

Dennisbulkan:
Of course they do. The cost of imported fuel would be way above N1,000/Liter without government subsidy. Now federal government said they cannot pay subsidy again, now the price of imported fuel will start rising gradually. The price of commodity is determined by supply & demand.. When Dangote starts supplying the market & the imported petrol keeps coming into our market then we may have excess supply & the price will consequently fall but if the supply of imported fuel drop & it's only Dangote that supply the market, he can control at whatever price he wishes to sell his petrol. It's an open market economy. Nobody can dictate to Dangote at what price to sell his petrol. If Dangote's petrol is too expensive you can keep importing foreign petrol. Dangote's refinery will provide more employment for Nigerians & greatly reduce unemployment directly & indirectly, boost our GDP, reduce our export deficit, reduce foreign exchange & dollar scarcity, that's the benefits Nigerians should expect to get from local production of petrol. Don't expect sudden drop in price, look into the bigger picture.

Thanks for taking time to explain.

Dennisbulkan:
Dangote refinery is a profit making organization; it borrowed tens of billions of dollars which accrue interest overtime, someone has to payback all the money right? The refinery employed thousands of Nigerians that dangote pays their salary, right? & dangote built the refinery to make profit, put all of these into perspective including the cost of crude oil per barrel, cost of production, taxes, logistics & come with your own calculation & let's see.

Benefits: Dangote refinery is not a government or a non profit organization. It will boost our GDP & many more. You can do more research on this subject to educate yourself. Google is there for you if you can afford to ask this question on nairaland forum, you can equally channel the same energy to ask Google for elaborate answer

are you saying the cost will remain same even when the cost of importation is removed. Because it's not imported. Are the foreign refiners not paying salaries and making profits too?

Op,

It's just a pity

richmond500:
with subsidy gone, there will be investors which will lead to competition and the local market will then decide the price.

but where will the investors invest? In Dangote refinery or where?

richmond500:
the market will regulate the price when competition sets in.
For now there is no competition and it is a Monopoly

the market? Probably by independent importers abi?

If yes, then you are still talking of importation.

nairalanda1:
Poor analogy, I'm sorry to say.

A better analogy would be your boss pretending that it cost N1million naira to maintain the generator every month, meanwhile it really costs N3 million naira, but because they do not want to cut staff salaries and welfare, they spend the N2 million they would have spent on the generator....to pay staff salaries....which overall means that the company loses money. Meanwhile they are taking loans to pay for the balance of the generator maintenance.

At some point , they realise they cannot continue doing that, so they announce a 30% cut in staff salaries, or there won't be electric power.

That is how subsidy works....to keep fuel prices down, we take money from other sectors of the economy to compensate the industry for resultant losses from keeping prices of fuel too low....while taking loans to cover up the resulting deficit in the budget. After some time, the debt gets too big to sustain. We reached that point years ago, but kept pretending, now it has reached crisis point.

I understood you but my analogy is not based on the subsidy itself but on their reluctance in keeping local refineries functional which resulted in the subsidy, now they want us to suffer their inefficiencies by just removing the subsidy.

I have to an extent understood the whole thing.

But the crux of the matter is , let them bear the burden of fixing local refineries before removing the subsidy. After that, from what I learnt in this article, if the economy improves and exchange rate comes down, pump price of petrol goes down automatically, that is if Dangote refinery insists on accepting dollar payments.

NSNO:
Think of subsidy removal as the incentive they need to fast track those things.

if you are a salary earner, will you allow your boss to start cutting your salary because he wants to use the money to repair the company's faulty generator set. Meanwhile, the gen set was making money for him but he was squandering the money and refused to service the gen when due. Now he wants to cut more than half of your salary to fix the generator.

Go to court. I don't think CBN will listen to you as an individual.

So what's the difference between local production and importation?

He did not say why the price will remain same. He only said that the refineries will add cost of refining the product, why will the pump price remain same if the cost of importation is removed?

NSNO:
5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean I competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

let those things you mentioned start working first before the subsidy is removed. That's all we are saying. We cannot just be suffering their cluelessness always.

Ok

My point.

Buy a bicycle and manoeuvre with it within your city

Not always car

No be only 4mil.

emmysmith13:
Wow first to comment on this. This life isn't balance. Vanity on vanity all id vanity.

first to comment on a thread that has not reached the promised land.

Location?

fineboynl:
For three days now I haven’t drive to go out due to been too busy and current fuel price.

So i result in warming my car every evening for like 3 days now and I noticed my fuel gauge drop significantly about 3 bars. I only waited for the thermostat to kicked which normally takes a lot of time to reach. The lost 3 bars can get me to somewhere not too far 3 times for like 2 days.

But today own was a thick plenty stem that started coming out from exhaust moment after thermostat kicked in. It was rain and everywhere cold. So it took longer for the thermostat to kicked. Today own drain my fuel chai

to the best of my knowledge, warming a vehicle on idle is a waste of petrol. It's better to drive around to let the engine oil circulate before packing again.

So I learnt.

Successonpoint:
I hope my story will motivate someone to take charge of their life. I lost my job last year July, and so a friend of mine introduce me to a poultry farm where I am earning 22k per month. A man with wife and two kids o, my wife was not happy with the job even though she has been supportive in her own little way. And then, she suggested that I should learn handwork, and so I decided to learn welder. On getting to the man, he told me I will spend 2 years o, I will pay 70k to learn from him. Me way I no get even 20k, I begged him to collect 50k and he agreed. Then he asked me to make part payment of 30k. I went home and told my wife, and then she gave me 20k to give to the man. I gave the man 20k and he collected it, to my greatest surprise within 2 months I started doing the welding job perfectly. On my own, I have paid up the remaining 30k with small small repairs job he allowed me to be doing for people. And by God's grace, I have started saving up for my tools. I really thank my wife for the advice and the welder too. The man has been a tremendous blessing to me in many way. He even told me yesterday that with the look of things I may be free from him in 2 months time except I decided to still remain with him for a while. Please take charge of your life and stop depending on people for survival.

thank God you have a supportive wife. you never know how lucky you are.

EbereFavour:
Online guru is someone who has an advance level of knowledge and can provide guidance to other

the bold is vague and bogus. Nobody can have an advanced level of knowledge in all spheres of life.

i am not a Roman Catholic but this Responsoral Psalm is cool. very cool.

wizi4tyn:
I know the automatic is less reliable, but from all I’ve gotten to know so far, which proper maintenance, I shouldn’t experience heartbreaks with the automatic. Just that the manual will require less care from me

no matter how careful you are, the automatic will fail you when you least expect it.

Jollos:
A 3 bedroom bungalow around mowe.
With family recept plan and deed of assignment.
Come with your offer.

08030842912

you'll be writing as if Nigeria is one village where everyone knows everywhere. Where the F. Is that address up there?

Nigeria my country

Let's start from there👆

EbereFavour:
Drop you questions here

Question 1.

Who is an "online guru?"

Entire convoy of Soludo and his deputy are made up of Innoson vehicle.