chigoizie7:
Nigerian government is a useless as "p" in psychology.


1. Why would the price drop down to 50% and u still make profits? This is because the cost of the essential raw material which is crude dropped drastically. This is understandable and it is the right thing to do.


2. What I don't understand is why Nigerian government has kept on buying other petroleum products (AGO,PMS and kerosene) @ the same price they used to buy it when the prices of the raw material (crude) was above $100/barrel, now that it has dropped to $50/barrel?

If u apply the logic in my question 1 above on question 2, u all will agree with me that the prices of all petroleum products should automatically drop by @least 50%.the very same way the prices of LNG dropped by 50%. After all, na the same raw material dem d use produce both commodities.


So, why is naija still buying @ inflated prices? Or can't they negotiate? Abi dem no mind weda it's citizens are suffering or not?

They will keep quiet and allow them to be exploited.
I pray for my country naija.

DON'T REALLY UNDERSTAND D ECONOMIC
TERMS PLAYING HERE, BUT D LITTLE I
UNDERSTAND IS DAT, SINCE WE DEPEND
LARGELY ON SALES OF CRUDE OIL TO RUN
OUR ECONOMY, D PAYMENT WE NOW GET
HAS DROPPED.
FOR INSTANCE, LETS SAY WE USED TO SELL
2000 BARRELS PER DAY AS AT 2014 AND WE
MADE $100,000 DAILY FROM SALES OF
CRUDE, NOW IN 2016, D QUANTITY OF CRUDE
WE SELL DAILY HAS DROPPED TO SAY 900
BARRELS PER DAY BECAUSE OTHER
COUNTRIES HAVE INCREASED THEIR SUPPLY.
ELEMENTARY ECONOMICS TEACHES DAT
INCREASED SUPPLY LOWERS DEMAND. NOW
DS ON ONE SIDE.
SECONDLY D "900" BARRELS WE NOW
SUPPLY DAILY USED TO SELL AT 2000X
$115 , BUT NOW WE SELL AT 900X $50
DAILY. DO D MATH AND U SEE THAT NIGERIA
IS LEFT WITH LITTLE OR NOTHING TO RUN
HER ECONOMY.
THIRDLY DEVALUATION SEEMED TO BE D
ONLY WAY OUT. A SIMPLE UNDERSTANDING
OF DEVALUATION TO ME IS ADDING MORE
TAX ACROSS ON EVERY COMMODITY BOUGHT
IN A COUNTRY. THIS IS SHOWN ON D
CURRENCY BY WHICH WE EXCHANGE FOR
GOODS IN D INTERNATIONAL MARKET WHICH
IS DOLLAR. BY SO DOING, D GOVERNMENT
WILL HAVE ENOUGH MONEY TO RUN
PROJECTS, PAY WORKERS AND STUFF.
DZ AND MANY MORE ARE D REASONS Y FUEL
PRICES ARE ALSO ON D HIGH SIDE.
I HOPE DS EXPLANATION CAN SUSTAIN U
TILL WEN U GET A MORE TECHNICAL ONE
FROM AN ECONOMIST.

macjireh:



DON'T REALLY UNDERSTAND D ECONOMIC
TERMS PLAYING HERE, BUT D LITTLE I
UNDERSTAND IS DAT, SINCE WE DEPEND
LARGELY ON SALES OF CRUDE OIL TO RUN
OUR ECONOMY, D PAYMENT WE NOW GET
HAS DROPPED.
FOR INSTANCE, LETS SAY WE USED TO SELL
2000 BARRELS PER DAY AS AT 2014 AND WE
MADE $100,000 DAILY FROM SALES OF
CRUDE, NOW IN 2016, D QUANTITY OF CRUDE
WE SELL DAILY HAS DROPPED TO SAY 900
BARRELS PER DAY BECAUSE OTHER
COUNTRIES HAVE INCREASED THEIR SUPPLY.
ELEMENTARY ECONOMICS TEACHES DAT
INCREASED SUPPLY LOWERS DEMAND. NOW
DS ON ONE SIDE.
SECONDLY D "900" BARRELS WE NOW
SUPPLY DAILY USED TO SELL AT 2000X
$115 , BUT NOW WE SELL AT 900X $50
DAILY. DO D MATH AND U SEE THAT NIGERIA
IS LEFT WITH LITTLE OR NOTHING TO RUN
HER ECONOMY.
THIRDLY DEVALUATION SEEMED TO BE D
ONLY WAY OUT. A SIMPLE UNDERSTANDING
OF DEVALUATION TO ME IS ADDING MORE
TAX ACROSS ON EVERY COMMODITY BOUGHT
IN A COUNTRY. THIS IS SHOWN ON D
CURRENCY BY WHICH WE EXCHANGE FOR
GOODS IN D INTERNATIONAL MARKET WHICH
IS DOLLAR. BY SO DOING, D GOVERNMENT
WILL HAVE ENOUGH MONEY TO RUN
PROJECTS, PAY WORKERS AND STUFF.
DZ AND MANY MORE ARE D REASONS Y FUEL
PRICES ARE ALSO ON D HIGH SIDE.
I HOPE DS EXPLANATION CAN SUSTAIN U
TILL WEN U GET A MORE TECHNICAL ONE
FROM AN ECONOMIST.

U are talking a different thing altogether.

Whatever u said up there had no correlation to the questions I asked.

If u ve been following my comments u will attest to the fact that I have been explaining what u wrote up there to other people, trust me, I know very much about what u said, thus, I wouldn't be asking questions about what I already know.



Please go back and read my initial comment, I pray u will understand my questions very clearly.


I am not talking about what comes in through the sale of crude.

My question is why we buy petroleum products @ d current price we buy it now that the sale of crude(raw material) has decreased by 50%.

And why naija has slashed the current sale of LNG by 50%.


Considering the fact that both LNG and other petroleum products are produced with the same raw material(crude).


That is my question.




As for devaluation of naira? Uptill date, FG has not told us weda it has been devalued or not officially even when other govt agencies are operating with a different fx rate different from that of CBN, example of such agency is nigeria customs.

Trust me, I know the importance of devaluation, even though it came late( it should have come earlier than now so that we will tackle it the same time we were tackling the hike on pms) .



There are other questions I asked, about d current price of PMS now that naira is being devalued through the back door, even when the template used in arriving @ N145 was 199/$ CbN rate, what will happen now that the importers will have to source fx through the black market even when d CbN rate will be around N285/$ through d back door.



Those are my questions.

I am not interested to know the merits/demerits of naira devaluation, neither am I interested on how much and how the price of crude has reduced over the years, as I know very well about it.

DropShot:

Can you bring the evidence here?

His actual words so we can analyse them. I remember the interview and I know how it was deliberately reported wrongly.

Wasted youths litter here indeed.

Oya, defend, Mr elder.

NwaNimo1:
Nothing but bad news - when next will Nigeria get some 'Goodluck'?

THAT IS WHAT WILL HAPPEN WHEN SOME BUNCH EVIL INTENTION POWER GRABBERS USES BROOMS TO SWEEP THE FOOTPRINT OF A WELL INTENTIONED, AND BEAUTIFUL MIND PERSON, WHAT WILL FOLLOWS IS GOING TO BE UNPRECEDENTED CATASTROPHIC, MONUMENTAL, DISASTER.

aloeman15:
The issues that affect our pump price are crude price and forex (dollar) price. The govt has devalued the naira to 285/$.
So, petrol was imported at 199, giving N87/l. But though crude prices dropped, dollar is now N285. Hence the increased pump price.

Thanks

macjireh:


DON'T REALLY UNDERSTAND D ECONOMIC TERMS PLAYING HERE, BUT D LITTLE I UNDERSTAND IS DAT, SINCE WE DEPEND LARGELY ON SALES OF CRUDE OIL TO RUN OUR ECONOMY, D PAYMENT WE NOW GET HAS DROPPED.

FOR INSTANCE, LETS SAY WE USED TO SELL 2000 BARRELS PER DAY AS AT 2014 AND WE MADE $100,000 DAILY FROM SALES OF CRUDE, NOW IN 2016, D QUANTITY OF CRUDE WE SELL DAILY HAS DROPPED TO SAY 900 BARRELS PER DAY BECAUSE OTHER COUNTRIES HAVE INCREASED THEIR SUPPLY. ELEMENTARY ECONOMICS TEACHES DAT INCREASED SUPPLY LOWERS DEMAND. NOW DS ON ONE SIDE.

SECONDLY D "900" BARRELS WE NOW SUPPLY DAILY USED TO SELL AT 2000X $115 , BUT NOW WE SELL AT 900X $50 DAILY. DO D MATH AND U SEE THAT NIGERIA IS LEFT WITH LITTLE OR NOTHING TO RUN HER ECONOMY.

THIRDLY DEVALUATION SEEMED TO BE D ONLY WAY OUT. A SIMPLE UNDERSTANDING OF DEVALUATION TO ME IS ADDING MORE TAX ACROSS ON EVERY COMMODITY BOUGHT IN A COUNTRY. THIS IS SHOWN ON D CURRENCY BY WHICH WE EXCHANGE FOR GOODS IN D INTERNATIONAL MARKET WHICH IS DOLLAR. BY SO DOING, D GOVERNMENT WILL HAVE ENOUGH MONEY TO RUN PROJECTS, PAY WORKERS AND STUFF.

DZ AND MANY MORE ARE D REASONS Y FUEL PRICES ARE ALSO ON D HIGH SIDE.
I HOPE DS EXPLANATION CAN SUSTAIN U TILL WEN U GET A MORE TECHNICAL ONE FROM AN ECONOMIST.

Thanks for the explanation.

tansho:




Oya, defend, Mr elder.

Lol.... hope say Mr elder never bail out?