I NEVER WANTED TO BE ANGRY BC TODAY IS MY BIRTHDAY. BUT WHEN WILL THIS PEOPLE STOP TO ANNOY NIGERIANS?
THIS WAS NOT THE CHANGE WE BARGAIN FOR NA?

Its 135 a litre at AP located at UNIPORT main gate.

olatade:
PMB is a phenomenon. He is loved by Nigerians for trustworthiness and untainted integrity. It can only take an extraodinary man to govern a complex country like Nigeria. He systmatically scrap fuel subsidy, reduce pump price without protest and gradually eradicating oil theft mafians, checkmating the wicked oil marketers in the oil business. God we thank you for bringing Buhari to power..Who d cap fits let him wear it...

Excellent synopsis!

Whose leadership and integrity status could be compared to that of Buhari?

Hmm,may be that of Murtala,who else?

Make dem announce first before I comment. Afterall, nearly cannot kill a bird.

#igetambeforenobeproperty

Frostty:
readn some comments make me sick,hw did u guyz expect d price of pms to crash locally wen we keep on importn refined products at dis exhorbitant exchange rate.we can nrva feel d impact of dis global fall in oil price if we keep on bringn in refined crude outside Nigeria.
may God save dis country

Pls educate those still in the dark.

jusRadical:




I doubt this news.


But if it is true, it will look absurd because you cannot remove susidy thereby deregulating the petroleum sector and at the same time, fixing or pegging the price of pms.

Subsidy removal is not deregulation, please stop misinforming the public. Deregulation is also known as privatization - removal of government interference. There is still government interference via the DPR and PPPRA.

We have previously done a rough calculation on price of refined oil. However, labor cost, other direct cost and logistics were not included. N85/liter is a fair price, which will be driven down in the future when the refineries begin to operate in full capacity.

repogirl:
New ke? girl, you need to update that list.... I don dey wail siiiiince.

Ok, kontinu. btw you missed the (m) afta my moniker.

Amberon:
if our government is a sane one, then petrol shouldn't even sell above 30 naira. because crude oil is at its lowest price in the international presently. So naturally, a fall in the global oil price should also mean a fall in petrol for consumption. but our useless government with their corrupt ways won't adjust the price to this effect.

about last year, the U.S govt slashed the price of gas by a third the normal price because gas got cheaper. Our useless government should learn.

Can you please give a breakdown of how you arrived at N30?

OLADD:


Jona reduced the PMS price from N97 to N87 but Lai Mohammed and APC cried blue murder. Today, while in govt, all APC-led administration can do was a N2 reduction! What a scam!

wailers are funny.... was it not Jona that increase the PMS price from N67 to N97?....because he dropped it back to N87 now means that he dropped the price?? if u don't understand mathematics Jona has indirectly increased the PMS price. all this happened within 5 years.

#babagoslow has not even spent a year and the PMS price is going to be reduced by N2.

Think before you wail bro

Agimor:
How much was patrol under Jona? And how much it's been purported under Buhari in between lies the answer.

Jonah paid heavily for subsidy, Buhari is doing otherwisie and the price of crude has dropped really low.

So 2 naira is the change that some persons died for.

When I still bought fuel at N130/L yesterday.

ImpactWorld:
Petrol is #200 per liter in my location.

APC please stop the scam,Nigerians are tired

i hate dat party with passion...i just hate APC.

maybe they mean the fuel refined at Kaduna refinery will sell at 85, if they intend to import then i doubt it with the current exchange rate.
I haven't bought at 87 in several months now so i hope the stations outside Lagos and Abuja will comply.

worlexy:
When I still bought fuel at N130/L yesterday.

#150 here in Onitsha yesterday. I don't want to believe anything till I buy it at #100 first.

Our governments are so unintelligent. What difference does #85 makes from #87? Anyway,thanks.

otokx:
Its 135 a litre at AP located at UNIPORT main gate.

So whose fault?

You cannot blame the greediness and wickedness of some demonic marketers,on the FG.

If you decide to buy at N135 and thereafter refuse to report such marketers to the NNPC as requested,whose fault?

Governance is not all about leadership,follower-ship is also key,play your own part by reporting demonic marketers to the appropriate authority.

The official price remains N87,for now.

I see confusion everywhere. D govt says subsidy must go next year. That means deregulation and d govt can no longer control d price. Now d govt is cutting d pump price. Is it trying to implement d two simultaneously?

OLADD:


Jona reduced the PMS price from N97 to N87 but Lai Mohammed and APC cried blue murder. Today, while in govt, all APC-led administration can do was a N2 reduction! What a scam!

It seems you have forgotten the new year gift oga jona gave us on 1st of January 2012..... He took the Petrol price from #62-#97..

Occupy Nigeria...

jusRadical:
This is no good news.

Gej (the supposedly corrupt president and the cause of all problems in Nigeria) made it N87 when the price of crude oil came down to around $67 per barrel. Now crude oil is around $35 per barrel and and pmb (the apc's messiah, saint, saviour, 'god', etc) is talking of N85 per lit of pms (if the info is true) and some people are rejoicing.


I am sorry for this company. oh sorry, country.

Mr Man, ur partisan politics no go let u undstand simple fact na. Fuel will be sold at 85 just because subsidy will be totally removed. If it was left, then fuel Wud be sold at around 40 or less. Get the fact and stop being partisan cos development of this country can never be achieved by blindly opposing a govt just because u dnt like him and his party

Amberon:
if our government is a sane one, then petrol shouldn't even sell above 30 naira. because crude oil is at its lowest price in the international presently. So naturally, a fall in the global oil price should also mean a fall in petrol for consumption. but our useless government with their corrupt ways won't adjust the price to this effect.

about last year, the U.S govt slashed the price of gas by a third the normal price because gas got cheaper. Our useless government should learn.

I live in US. Stop all these misinformation. The government of US does not determine the price of petrol. Their petroleum products have been deregulated many years back so many market factors detertime cost of petroleum products. That is why here in US dif ferret gas stations sell at different prices, so it depends on you to search for where you will get cheaper gas. As for reducing cost of fuel price. I thought it was 97 when I visited Nigeria last year so it must have been reduced by this government by 12naira. You hardly see a government in Nigerian history that reduced price of petrol by such margin so stop wailing

shizzy7:
It seems you have forgotten the new year gift oga jona gave us on 1st of January 2012..... He took the Petrol price from #62-#97..

Occupy Nigeria...

no mind am.
Jona used subsidy and sold fuel at 87 while PMB removed it and is gonna sell at 85. Only the wise knows the which is of the both leader is more satisfactory.

If PMB had not removed it, don't u know fuel will be sold at around 35 or 40? But do u think the corrupt oil marketers will make it advantageous to we the Masses? So the removal is better

Saurab:


Let begin from the scratch, how much is the global average price of PMS as of this morning?

$35

fckmn24seg:


The N87 GEJ was a political because of the election, he has promised to increase the pump prise to 130 in Jan 2015, seeing the opposition wave of strength, he shifted the price increment till April, the fact is that the GEJ government was so broke that they have no means of running the govt than to increase pump price like he did in 2012

Really? When? Where?

Olalekanbanky1:
no mind am.
Jona used subsidy and sold fuel at 87 while PMB removed it and is gonna sell at 85. Only the wise knows the which is of the both leader is more satisfactory.

If PMB had not removed it, don't u know fuel will be sold at around 35 or 40? But do u think the corrupt oil marketers will make it advantageous to we the Masses? So the removal is better

I just dey look the boy, when they were shouting that they will use the subsidy to build and restructure refineries.

* where are the refineries?
*They still owed importers till the end of jona's tenure..
*The global oil price was twice what it is now.

What exactly did they use the #30 difference for?


They were able to reduce the price to #10 two weeks before election...


Those people don chop money and turn everything upside down but some buffoons are still saying that they are the best...

sameer1212:
Good. Wailers will not like this news.

what is good about this news? Even the blind can see that this is only but a subtle gimmick geared towards subsidy removal. I am watching it in 3D...

swezenberg:


I live in US. Stop all these misinformation. The government of US does not determine the price of petrol. Their petroleum products have been deregulated many years back so many market factors detertime cost of petroleum products. That is why here in US dif ferret gas stations sell at different prices, so it depends on you to search for where you will get cheaper gas. As for reducing cost of fuel price. I thought it was 97 when I visited Nigeria last year so it must have been reduced by this government by 12naira. You hardly see a government in Nigerian history that reduced price of petrol by such margin so stop wailing

It was reduced by Jonathan's government two weeks before the election...

Na Campaign strategy..

Seyi1986:
thats not the change i voted for

If Sai Booboo catch you ehm, my hand no dey o.



www.nairaland.com/attachments/3017836_cdatausersdefappsappdatainternetexplorertempsavedimages2904740untitledjpegf00b416e41190686e1165a3b44a1bf51_jpegc38bc011a1512d785d67ab0131801252

Jarus:


Jonathan met petrol price at N65 and left it at N87. Does that tell the story now?

Yes Jona met it at N65 when the global price was fairly stable but he had to effect a reduction when the price slid substantially, hence the reduction from N97 to N87. Now that the price is dangling between $38 and $40, how justifiable is this meagre N2 reduction?

God Bless you COMPAQ...To add a little..I will compare the pricing template in USA and Nigeria with reference links if anyone need details

US Methodology For Gasoline and Diesel Fuel Pump Components
The components for the gasoline and diesel fuel pumps are calculated in the following manner in cents per gallon and then converted into a percentage:

Crude Oil - the monthly average of the composite refiner acquisition cost, which is the average price of crude oil purchased by refiners.

Refining Costs & Profits - the difference between the monthly average of the spot price of gasoline or diesel fuel (used as a proxy for the value of gasoline or diesel fuel as it exits the refinery) and the average price of crude oil purchased by refiners (the crude oil component).

Distribution & Marketing Costs & Profits - the difference between the average retail price of gasoline or diesel fuel as computed from EIA's weekly survey and the sum of the other 3 components.

Taxes - a monthly national average of federal and state taxes applied to gasoline or diesel fuel.

It should be noted that the second and third components can vary widely, depending on the time when the components are being calculated. Since there is typically a lag between when the spot price changes to when the retail price changes, the refining costs & profits component and the distribution & marketing costs & profits component can vary from month to month. For example, as prices increase on the spot market, often the retail prices take time to adjust. Thus, at this point in the cycle, the refining costs & profits component (assuming no corresponding increase in crude oil prices) would be relatively large while the distribution & marketing costs & profits component would be relatively small. However, later on, as retail prices "catch-up" with the previous spot price increases, the distribution & marketing costs & profits component would increase while the refining costs & profits component would decrease.
http://www.eia.gov/petroleum/gasdiesel/pump_methodology.cfm#1


NIGERIA METHODOLOGY -
DESCRIPTION OF COMPONENTS ON THE PRICING TEMPLATE

1. PRODUCT COST ($/MT)
This is the monthly moving average cost of products cost as quoted on Platts Oil gram. The reference spot market is North West Europe (NWE).
2. FREIGHT ($/MT)
This is the average clean tanker freight rate (World Scale (WS) 100) as quoted on Platts. It is the Cost of transporting 30, 000mt (30kt) of product from NWE to West Africa (WAF). Trader’s margin of $10/MT is also factored into the Freight cost.

3. LIGHTERING EXPENSES ($/MT)
STS/Local Freight charge is the cost incurred on the transshipment of imported petroleum products from the mother vessel into daughter vessel to allow for the onward movement of the vessel into the Jetty. This charge includes receipt losses of 0.3% in the process of products movement from the high sea to the Jetty and then to the depot. The mother vessels expenses are based on the allowable 10 days demurrage exposure at the rate of $28,000 per day.

The Lightering Expenses also includes the Shuttle vessel’s chartering rates from Offshore Lagos to Lagos and Port Harcourt which currently stands at N2.00 per litre and N2.50 per litre respectively. Transshipment (STS) process is as a result of peculiar draught situation and inadequate berthing facilities at the Ports.

4. NIGERIA PORT AUTHORITY (NPA) CHARGE ($/MT
It is the cargo dues (harbor handling charge) charged by the NPA for use of Port facilities. The charge includes VAT and Agency expenses.

Currently, NPA charge attracts $10.50/MT on the pricing template.

5. FINANCING
It refers to stock finance (cost of fund) for the imported product. It includes the cargo financing based on the International London Inter bank Offered Rates (LIBOR) rates+5% premium for 30 days (for Annual Libor rate of 2.07%, LIBOR cost would be 7.07%). Also included in the Finance cost is the inertest charge on the subsidy element being awaited for an allowable 60 days period at Nigerian Inter Bank Offered Rate (NIBOR) rate of 22%.

6. JETTY DEPOT THRU PUT
This is the tariff paid for use of facilities at the Jetty by the marketers to move products to the storage depots. The value is currently N0.80/litre.

7. STORAGE CHARGE
Storage Margin is for depot operations covering storage charges and other services rendered by the depot owners. The charge is currently N3.00/litre.

8. LANDING COST
It is the cost of imported products delivered into the Jetty depots. It is made up of components highlighted above (1, 2, 3, 4, 5, 6 and 7).

9. DISTRIBUTION MARGINS
These include Retailers (N4.60 per litre), Transporters margins (N2.99 per litre), Dealers margin (N1.75 per litre), Bridging Fund (plus Marine Transport Average) (N6.00 per litre) and Administrative charge (N0.15 per litre). This amounts to N15.49 per liter on the template. The overhead cost and other running costs have been considered in the determination of these margins.

10. TAXES
These include highway maintenance, government, import and fuel taxes. It has the overall objectives of revenue generation, social infrastructure investment and servicing and efficient fuel usage. Presently, all these attract zero taxes.

11. RETAIL PRICE
This is the expected pump price of petroleum product at retail outlet. It is made up of landing cost of imported product plus reasonable distribution margins.

http://pppra.gov.ng/pricing-template-pms-2/
http://pppra.gov.ng/pricing-template/

COMPAQ:


Dude, you are not arguing from a point of knowledge. A few reasons why the price of petrol in Nigeria is not perfectly elastic to the price of crude:

1: crude makes up only about 40-50% of the petrol price in most countries. The rest is made up of refining costs, distributions costs, marketing costs and special taxes. None of those would have changed because crude prices have crashed.
2: even as crude prices have crashed (which should take the petrol price down), exchange rate has gone the other direction in the same period (158 to 200), which causes the Naira price of petrol to go up since we import it.
3: our method of getting petrol where we send it out, people refine and send it back means we are paying for extra profit margins, shipping and refining costs that most other people are not paying.

Let's do some maths.
Typical gallon of petrol in us averages about $2=N400.
Let's assume gallon = 4litres (it's actually 3.
The US litre=N100
US price consists if about 20% special tax
If we assume we don't want to put extra levy on our petrol and we back out the 20%, you might get to N80 give or take.

Also your statement about US government reducing prices cannot be true because the sector is fully deregulated in America. If the prices came down its purely due to demand and supply forces.

Hope I've helped.

menxer:


Ogbeni I read that budget speech twice, petroleum subsidy is NOT provided for.

I would like to see your link where petroleum subsidy is provided for in the 2016 budget

It was never removed, the modulation is different