This is simple enough. If your child is collecting #5, because transportation fair is high due to high cost of fuel, then why should he still insist on collecting same amount when fuel price has reduced, and drivers have reduced their price?

If Nigeria government claims to be paying x amount as subsidy when crude oil is sold for $100, they still claim same amount when it went up to $107. Why should d subsidy price still be at constant x, when d price is now $70?

You see How corruption disables human brain? If there is a change on crude oil price, common sense dictates that the subsidy price also should reduce this time around.

Crude oil price is falling, fuel price is constant, subsidy money is constant, therefore corruption is still constant. Corrupt leaders and their cabinets can not think smart and straight. Nigerians, stop corrupt leaders, before they stop d future!

G

dmighty:
This is simple enough. If your child is collecting #5, because transportation fair is high due to high cost of fuel, then why should he still insist on collecting same amount when fuel price has reduced, and drivers have reduced their price?

If Nigeria government claims to be paying x amount as subsidy when crude oil is sold for $100, they still claim same amount when it went up to $107. Why should d subsidy price still be at constant x, when d price is now $70?

You see How corruption disables human brain? If there is a change on crude oil price, common sense dictates that the subsidy price also should reduce this time around.

Crude oil price is falling, fuel price is constant, subsidy money is constant, therefore corruption is still constant. Corrupt leaders and their cabinets can not think smart and straight. Nigerians, stop corrupt leaders, before they stop d future!

Your assumptions are erroneous.
that crude oil prices have fallen doesn't mean the cost of refining the crude oil to combustible fuels have reduced.

That the demand for crude oil have reduced leading to reduction in prices doesn't mean that the demand for fuels have reduced

If the demand for fuels is high the prices will remain high

we sale crude oil and import fuels.
Subsidies are paid on imported fuels not crude oil



And when you talk of corruption, first on all, do a self check, are you corrupt free

In Nigeria, we see thieves calling others thieves

ideology:


Your assumptions are erroneous.
that crude oil prices have fallen doesn't mean the cost of refining the crude oil to combustible fuels have reduced.

That the demand for crude oil have reduced leading to reduction in prices doesn't mean that the demand for fuels have reduced

If the demand for fuels is high the prices will remain high

we sale crude oil and import fuels.
Subsidies are paid on imported fuels not crude oil



And when you talk of corruption, first on all, do a self check, are you corrupt free

In Nigeria, we see thieves calling others thieves

Hi,
Thanks for trying to explain things. If it's not too big for your mind to hear it, I am free of corruption! That majority is doing something does not automatically mean, every one is infected sir.
Could you please cross check online (it costs nothing to do that), the price of fuel in other OPEC Nations and tell us the price?
The point is simple: Every man's ignorance is their mountain. You have already accepted a fraudulent leadership style of government as the norm that should not be questioned. Don't even think that I am talking of the Executive arm of government alone. How can you hav e a constant price for subsidy at all moment, and you feel that is cool!!

LAGOS — Following the continuous decline in
the prices of crude oil in the international
market, the amount the Federal Government is
paying on subsidy for Premium Motor Spirit,
PMS, has dropped to N4.48 per litre.
This came as the Nigerian National Petroleum
Corporation, NNPC, assured Nigerians that the
ongoing strike embarked upon by members of
the Petroleum and Natural Gas Senior Staff
Association of Nigeria, PENGASSAN, and the
National Union of Petroleum and Natural Gas
Workers, NUPENG, will not disrupt the supply
of petroleum products to members of the
public.
The Petroleum Products Pricing Regulatory
Agency (PPPRA), in a document obtained
from its website, yesterday, puts the
market price of PMS at N101.48 per litre, as
at December 12, 2014, compared to N108.38
per litre as at December 9, 2014.
According to the PPPRA, the Expected Open
Market (EOMP) of fuel is N101.48; Landing
Cost -N98.15; Ex-Depot price is N81.51 per
litre, while the regulated price is N97 per
litre.
The assurance by the NNPC is against the
backdrop of long queue of vehicles that
resurfaced at most filling stations in the
Federal Capital Territory, FCT, and its environs
yesterday on account of the strike announced
by the unions.
http://www.vanguardngr.com/2014/12/crude-
price-decline-fuel-subsidy-payment-drops-
n4-48litre/

Teacher: When crude oil was $119 per barrel,
we
buy petrol for N97 per litre
& kerosene N100+, we also pay 'subsidy'Now
that crude oil is $49 per barrel with all
other
things being equal, what is the expected price
of
petrol & kerosene per litre?
Also, are we still paying subsidy & how much?
Jonathan: N87. kerosene, no reduction, &
subsidy constant.
Teacher: Pls who awarded PhD to this man who
doesn't know simple arithmetic?
Teacher: buhari what is the answer?
Buhari: sir, the only items that change is price,
so
our change formular is;
If $119 changed to $49
Then N97 will CHANGE to N27, kerosene price
will also drop, while subsidies are out of d
equation or reduced to it's bearest minimum.
Teacher: But they said you don't have
certificate?
Buhari: it's a simple arithmetic, even market
woman can solve it.
Teacher: Chai chai..... we need CHANGE

How much is subsidy now that crude oil is
$45? What is d landing cost of oil now, because we were told d landing cost when they took it to 145 naira. how did 60% drop in crude price affect only
petrol and left deisel and kerosene constant?
wht kind of dull govt is this...

ideology:


Your assumptions are erroneous.
that crude oil prices have fallen doesn't mean the cost of refining the crude oil to combustible fuels have reduced.

That the demand for crude oil have reduced leading to reduction in prices doesn't mean that the demand for fuels have reduced

If the demand for fuels is high the prices will remain high

we sale crude oil and import fuels.
Subsidies are paid on imported fuels not crude oil



And when you talk of corruption, first on all, do a self check, are you corrupt free

In Nigeria, we see thieves calling others thieves

Say what you know, stop claiming JADON on something u don't know.
Why is it that the price of diesel which govt pays no subsidy has dropped from N137 to N 95?

dmighty:
LAGOS — Following the continuous decline in
the prices of crude oil in the international
market, the amount the Federal Government is
paying on subsidy for Premium Motor Spirit,
PMS, has dropped to N4.48 per litre.
This came as the Nigerian National Petroleum
Corporation, NNPC, assured Nigerians that the
ongoing strike embarked upon by members of
the Petroleum and Natural Gas Senior Staff
Association of Nigeria, PENGASSAN, and the
National Union of Petroleum and Natural Gas
Workers, NUPENG, will not disrupt the supply
of petroleum products to members of the
public.
The Petroleum Products Pricing Regulatory
Agency (PPPRA), in a document obtained
from its website, yesterday, puts the
market price of PMS at N101.48 per litre, as
at December 12, 2014, compared to N108.38
per litre as at December 9, 2014.
According to the PPPRA, the Expected Open
Market (EOMP) of fuel is N101.48; Landing
Cost -N98.15; Ex-Depot price is N81.51 per
litre, while the regulated price is N97 per
litre.
The assurance by the NNPC is against the
backdrop of long queue of vehicles that
resurfaced at most filling stations in the
Federal Capital Territory, FCT, and its environs
yesterday on account of the strike announced
by the unions.
http://www.vanguardngr.com/2014/12/crude-
price-decline-fuel-subsidy-payment-drops-
n4-48litre/

And I was almost right in my analysis. N9 subsidy to N4.48k. Nice one by GEJ

Let me do some calculations

Average crude oil price in the last one month
Dec 2014 = $60.70 (www.ycharts.com/indicators/average_crude_oil_spot_price)
This is -21.16% from previous month ($76.99)

Average crude oil price in the last one year = $105.48

Old PMS price with partial subsidy = N97
Old PMS price without subsidy - N138/N140, but let's assume it's = N138

Actual oil price at $105.48 = N138 PMS (without subsidy)
New oil price at $60.70 = (60.70/105.48)^138 = N79.41 ~ N80.

Without subsidy, PMS price should be about N80.

However, let's assume because of the fluctuations in price, we can allow for 20% fluctuation.

This implies,
Fluctuation allowance = 0.2*N80 = N16

Actual PMS price without subsidy = N80 + N16 = N96

To allow for some partial subsidy of say N9 per liter,

This implies,
Current PMS Price = N96 - N9 = N87.

*This doesn't put into consideration the recent devaluation of our naira.

My assumptions sha.

GEJ
Okonjo-Iweala
Dieziani

We need answers........

GuyFawkes:

GEJ
Okonjo-Iweala
Dieziani

We need answers........

Your arithmetic is flawed my friend. There are always variables to consider. It's not 1+1=2, you people should stop displaying ignorance and make Nigerians look like empty brains o.,.

Let me do some calculations

Average crude oil price in the last one month
Dec 2014 = $60.70 (www.ycharts.com/indicators/average_crude_oil_spot_price)
This is -21.16% from previous month ($76.99)

Average crude oil price in the last one year = $105.48

Old PMS price with partial subsidy = N97
Old PMS price without subsidy - N138/N140, but let's assume it's = N138

Actual oil price at $105.48 = N138 PMS (without subsidy)
New oil price at $60.70 = (60.70/105.48)^138 = N79.41 ~ N80.

Without subsidy, PMS price should be about N80.

However, let's assume because of the fluctuations in price, we can allow for 20% fluctuation.

This implies,
Fluctuation allowance = 0.2*N80 = N16

Actual PMS price without subsidy = N80 + N16 = N96

To allow for some partial subsidy of say N9 per liter,

This implies,
Current PMS Price = N96 - N9 = N87.

*This doesn't put into consideration the recent devaluation of our naira.

My assumptions sha.

dmighty:
How much is subsidy now that crude oil is
$45? What is d landing cost of oil now, because we were told d landing cost when they took it to 145 naira. how did 60% drop in crude price affect only
petrol and left deisel and kerosene constant?
wht kind of dull govt is this...

Read your post again and you will find out that you are the dull one here.

Read ds by Onyebuchi Ememanka. It is not too long, stop being ignorant of what God has made available for the Nation. Be a responsible Nigerian for once...Ds Subsidy nonsense:
NIGERIA'S FUEL CRISIS - WHY I BLAME GEJ
In discussing this very volatile issue, let me make one point very clear. I speak from a very informed perspective. This is not just one of those social commentaries.
I worked in the downstream petroleum sector for about 36 months as legal counsel and this was at the peak of the subsidy crisis. I handled and prepared critical documents, advised on transactions and participated in the subsidy scheme as a staff of the one of biggest indigenous players in the sector. I have a perfect understanding of the system from the point where these products are negotiated and bought from refineries abroad to the contract for their shipping....from arrival at the Port in Nigeria to the inspections and the final destination at designated tank farms, so I speak with authority. When the subsidy probe started, I also made several submissions to the National Assembly Committees and also was at the EFCC during the investigations.
Weak and reactive leadership is a disaster to any organization that has it. The hallmark of great leadership is the ability to identify risks and institute effective risk management systems. No organization in this world can survive uncontrolled hemorrhage of scarce resources.
The subsidy scheme became an issue under President Obansanjo. It was under him that the concept of petroleum importation became full blown. For reasons best known to the wily Owu Chief, our four refineries were left to rot while our country relied on fuel importation. That policy remained the biggest disservice former President Obasanjo did to this country.
However, as bad as that policy was under OBJ, there was still some level of sanity and control. At no time under OBJ did subsidy payments exceed 190 billion Naira annually. There were stringent measures that controlled the participation of companies under the subsidy scheme.
Just before OBJ left office, he sold two of our refineries to Dangote and Otedola, a measure that would have worked if fully implemented. It is beyond doubt that the private sector remains the best economic and commercial managers. Government is a cesspool of waste and corruption.
When late President Yar'adua took over, he rode on a staccato of uninformed voices to reverse the sale of the refineries. He reversed the sale but did nothing to bring the refineries back to work. He continued to run the subsidy scheme and kept the restive sanity in the system. As at the time Yar'adua died, Nigeria's subsidy burden was about 230 billion Naira per annum.
Now for the uninformed, the petroleum subsidy scheme is a system where the federal government, on a bid to reduce the cost of fuel paid by Nigerians chooses to pay the difference between the landing cost of petrol imports, the prevailing price of the commodity at the international market and what is actually sold in Nigeria.
For instance, if the landing cost of petrol in Nigeria is, say, N 115, and after adding lightering charges and other logistics costs, the price of petrol should be N147, the federal government asks the marketers to sell at N97 and decides to pay the marketers the difference per litre.
Now enter President Goodluck Ebelechukwu Azikiwe Mainasara Jehoshaphat Effiong Jonathan!
Under him, subsidy costs jumped from 200 billion Naira to over 1.2 trillion in the first two years of his government.
Why? What happened?
Did the population of Nigerian triple within that period or did the number of cars quadruple? Was there an industrial revolution?
The answer is simple. Again, I speak from an informed position.
Due to weak regulatory regimes, the downstream sector became an all comers affair. Every Tom, Dick and Harry entered the business. Companies with no verifiable addresses, no tank farms, no vessels, no financial structures, no bank guarantees all became fuel importers. It was a bazaar. It is only in Nigeria that such bizzare things can happen. Emergency millionaires were made in days. Time and space won't allow me to give you details of the unbelievable things that happened. Every top official of the federal government became an emergency fuel importer or middle man. Importation licenses were hawked openly. All you needed was for the PPPRA to give you a license to import. You could sell it for millions just outside the door.
Now there is a complex web that links the Petroleum Ministry, the DPR, thE Navy, the NPA, NIMASA,PPPRA, DMO, CBN and Commercial Banks in this fraud. Documents like the sovereign debt statements and the sovereign debt notes flew about and our money kept disappearing. From about 30 companies in the scheme, the number shot up to 300. Monthly, billions of Naira were paid out to people who have never had any contact with a Jerry can of fuel in their lives. No verification, no authentication, nothing. Money was being paid with reckless abandon. Dr Okonjo Iweala and Mrs Alison Madueke were all there watching!
It got so bad that some people will arrange with ship owners......take a two day hire of an empty ship, move it to Lagos Port, berth it there. Officials of the PPPRA, Petroleum Ministry, DPR will come there to inspect an empty vessel and certify that the empty vessel carried 10,000 metric tons of petrol, collect their money and walk away. The vessel simply sails away and three weeks later, close to 6 billion Naira will be paid as subsidy when not even a single drop of petrol was brought in.
It was when the government saw that it could no longer sustain that level of waste that GEJ made that attempt at removing subsidy which was stoutly and rightly rejected by Nigerians.
If you recall, the call for the probe of the Subsidy fraud didn't even come from the Presidency. GEJ never called for any probe. Neither did Alison Madueke nor Okonjo Iweala. The call for probe was triggered off by the submissions of Senator Bukola Saraki on the floor of the Senate when he took time to tell the sad story of the biggest fraud in modern Nigeria called FUEL SUBSIDY.
Nigerians should ask GEJ to tell us how our subsidy burden jumped from 200 billion to 1.4 trillion in two years.
Between 2008 and 2013, the PPPRA was about the most corrupt government office in Nigeria. People who worked there lived like Emperors. They spent dollars like there was no tomorrow. Only the privileged found their way there. Each time I went to their office in Abuja then, I left with a heavy heart. This country is in serious trouble.
The only time sanity came to that sector was when GEJ brought Reginald Stanley, former Group General Manager of PPMC who also headed the London Branch of the NNPC into the picture. Reginald Stanley cleaned up the PPPRA, redeployed close to 80% of the workers and rejigged the subsidy program. It was then discovered that more than 60% of the funds paid as subsidy in the last three years were paid wrongly and fraudulently.
That was when the subsidy probe started. Out of the over 300 companies that were collecting subsidy, it was found that not up,to 30 were really importing fuel. Close to 700 billion Naira were stolen in the subsidy scheme. Till date, not a single person has been convicted.
Again, throughout the five years that GEJ ran this country, not one single attempt was made to even find out what is the problem with our refineries.
And yet, people say I shouldn't blame GEJ!
Who should I blame?
My father.....in his grave?

why is topic like this not making fp