From all the facts laid bare before the general public from the meeting held at the instance of the senate chairman on downstream, it became crystal clear and evident #145 per liter isnt sustainable as it stands today.

Making this stance known was when the minister of state for petroleum Ibe Kachukwu told the committe why the nation went through roughly a 1 month period of fuel scarcity and especially during the holidays and festivities.

In his revelation, the minister categorically stated that the landing cost of PMS that used to be #133 per Litre has shot up to #171 and making it very unattractive for independent marketers to import the product and sell at government approved price of #145 as no rational business man would buy at #171 only to sell at #145.

That said, it made it most apparent why no independent marketer was in the business of importing any longer since it was no longer attractive to do so. This development made the NNPC the sole importer of PMS, importing at #171 and selling at #145 incuring a loss of around 800 to 900 million naira per day importing over 25 milliom metric tonnes on the daily average.

With this revelation, it made it apparent the government had to come to a resolution to solve this crisis and the recommendations were what left us mouth agape.

Below were the recommendations the panel suggested.

“One, is for the Central bank of Nigeria (CBN) to allow the marketers access forex at the rate of N204 to a dollar as against the official rate of N305 to keep the pump price of fuel per litre at N145.

“Two, to give room for modulated deregulation where NNPC would be allowed to continue selling at N145 per litre in all its mega stations across the country while the independent marketers should be allowed to sell at whatever price is profitable to them in all their outlets.

“Three, to look at the direction of blanket subsidy for all the importers in bridging the gap which would be like going back to a problem that had earlier been solved,” he said ...

Going by these 3 recommendations, you would see why we are of the opinion of having pump price at #145 floating between the devil and the deep blue sea.

How do you access forex from CBN at #204 and we trust this subsidised forex to be used for purchase of PMS.. Why not just buy at #204 and sell black market above #350..

How do you say only NNPC stations to sell at #145 and allow a free for all for other marketers? Wouldnt the fuel ques be unbearable at the NNPC Mega stations?

Subsidy. . Which means practically going back to our vomit making us go round in circles like a mary-go-round...
These facts leave PMS Price at a cross road.

What I suspect is that the pending the 2019 elections, NNPC would have to sustain their daily loss to keep price stable at #145 and after the 2019 election we could expect the worst.

The question is..

Is #145 per litre still sustainable?

source : https://www.omascope.com/politics/pms-pump-price-at-145-floating-between-the-devil-and-deep-blue-sea

I am booking this space for a shower, when I am back I will read comments

What do you mean by incurring losses?Call it by name biko....it is called SUBSIDY

When they say landing cost, what did they mean by that? NNPC is organ of Nigeria government, must they include all the taxes and duties to the final cost?

Unfortunately all the listed options are prone to corruption. IBB tried a dual petrol price then. It didn't work. The higher price prevailed. They should just deregulate once and for all

one question i have is oil fall to as low as 45$ when buhari removed subsidy. now the price have gone up to 69$ per barrel.

now $69 - $45 = $25.

we export over 2.2 million barrel per day

2.200,000 × $25 = $55,000,000 per day.

since extra up to $55m per day join the previous amount how come the foreign exchange is still stagnant all this while. oh i forgot buhari don't know how to make money. but at least this is simple maths and in economies there is addition.

we have not forgot the rice ban and other items on the list, including zero corruption and the rest. why no change from the foreign exchange.

as at 04/01/2018 $1 was sold at N369.

this administration is a failure.

yanshDoctor:
one question i have is oil fall to as low as 45$ when buhari removed subsidy. now the price have gone up to 69$ per barrel.

now $69 - $45 = $25.

we export over 2.2 million barrel per day

2.200,000 × $25 = $55,000,000 per day.

since extra up to $55m per day join the previous amount how come the foreign exchange is still stagnant all this while. oh i forgot buhari don't know how to make money. but at least this is simple maths and in economies there is addition.

we have not forgot the rice ban and other items on the list, including zero corruption and the rest. why no change from the foreign exchange.

as at 04/01/2018 $1 was sold at N369.

this administration is a failure.

oh my God! You should be a statistician .. see calculated analysis biko.

Bros you too much

aolawale025:
Unfortunately all the listed options are prone to corruption. IBB tried a dual petrol price then. It didn't work. The higher price prevailed. They should just deregulate once and for all

all the available options are bitter options and hence where I got inspiration for the topic of this post.

#145 is between the Devil and deep blue sea.


Nigerians must start smelling the rat

It is very likely that Nigerians will be forced to pay higher pump price ( between N180 - N185) at the long run. But am almost sure the Buhari led govt will not want to commit suicide by increasing the price this year prior to election. They know they will be kicked out in 2019 if they dare increase price now.
I foresee the Buhari govt subtly paying subsidies on fuel and waiting after elections to increase the price ( if it even gets reelected). The Nigerian masses will always be used and dumped.

But my question is, why are Nigerians made to pay more pump price in whichever circumstance.
The Intl Market price crash from $145 to $32 per barrel, and pump price was increased from N85 to N145 and Nigerians were asked to pay more despite the global crash.
Now the Intl price has risen to about $63, yet Nigerians are asked to pay more. The reason is that they are having to pay more to import. What happened when they were paying less?
Am sure even if the crude price crashes to $10 we will still pay more.
Whichever way, Nigerians will have be made to suffer.

Ahmeduana:
When they say landing cost, what did they mean by that? NNPC is organ of Nigeria government, must they include all the taxes and duties to the final cost?

the question is,
who is to pay for corruption and Rascality and irresponsibility of government.


refineries are not working... is it governments fault or my fault.

dollar price not stable, is it my fault ?

the ordinary nigerian man shouldnt be made to pay for corruption of a few.


when corruption steals our common wealth away, ordinary nigerians pay the ultimate price at the ever increasing fuel pump price.


lets just say rate of corruption is inversely proportional to fuel pump price in nigeria cos if dollar goes down u add fuel price, if dollar comes up, u add fuel price. If dollar stable u still add fuel price. What insolence?

Nasa28:
What do you mean by incurring losses?Call it by name biko....it is called SUBSIDY

but I thought the Subsidy regime was a thing of the past.

Who then is fooling who?

I taya for naija my country

OceanmorganTrix:
I am booking this space for a shower, when I am back I will read comments

space booker.. this is 2018 ooo. Abeg change your ways oo bro

PStacks:



space booker.. this is 2018 ooo. Abeg change your ways oo bro

IT'S JUST A MATTER OF TIME B4 D INCREASE BECOME OFFICIAL. HOW IRONIC D INCREASE HAPPENED WEN SALARY INCREASE IS DISCUSSED.

buchilino:
IT'S JUST A MATTER OF TIME B4 D INCREASE BECOME OFFICIAL. HOW IRONIC D INCREASE HAPPENED WEN SALARY INCREASE IS DISCUSSED.

oh now I get. The pump price increase would be targeted at taking whatever increase they grant in salary and new minimum wage

PStacks:





oh now I get. The pump price increase would be targeted at taking whatever increase they grant in salary and new minimum wage

EXACTLY

CharleyBright:

It is very likely that Nigerians will be forced to pay higher pump price ( between N180 - N185) at the long run. But am almost sure the Buhari led govt will not want to commit suicide by increasing the price this year prior to election. They know they will be kicked out in 2019 if they dare increase price now.
I foresee the Buhari govt subtly paying subsidies on fuel and waiting after elections to increase the price ( if it even gets reelected). The Nigerian masses will always be used and dumped.

But my question is, why are Nigerians made to pay more pump price in whichever circumstance.
The Intl Market price crash from $145 to $32 per barrel, and pump price was increased from N85 to N145 and Nigerians were asked to pay more despite the global crash.
Now the Intl price has risen to about $63, yet Nigerians are asked to pay more. The reason is that they are having to pay more to import. What happened when they were paying less?
Am sure even if the crude price crashes to $10 we will still pay more.
Whichever way, Nigerians will have be made to suffer.

very intelligent analysis.
Unfortunately its a sad reality