By I.A Katagum

What’s all this hue and cry about the insinuated increase in the pump price of the petroleum motor spirit. Don’t tell me you have not seen it coming right from the day you advocated for the total removal of subsidy on the product!

By the way, seems like most us back then, were just shouting ‘remove subsidy’ ignorantly without actually having a grasp of what the removal entails. Only that can explain some folk’s resolve to come back here and start singing direct opposite of what they sang earlier. (we can not buy fuel above N145/ltr).

The last time I checked, removal of subsidy on a particular commodity will mean the same thing as allowing market forces, notably those of demand and supply to determine the price of that commodity. By that singular act of removing subsidy on petroleum products, the pump price of these products has become vulnerable to changes in the cost of production.

Just like the way increase in the cost of production of rice will cause a proportionate increase in the market price of rice, same phenomenon will also apply to unsubsidized PMS.

Lest I forget, a barrel of crude oil was selling below $30 when the subsidy was first removed, and that was why we were able to buy fuel at a reasonable pump price of N145/Ltr.

Now that the the price of crude oil in the international market has rocketed to about $60/barrel, common sense should be able to tell you that the pump price of N145/ltr is not longer feasible, else the marketers will be running at loss. Without subsidy, there is no way the pump price of petroleum will remain stable. It will always change to reflect prevailing realities.

As it stands now, the government has got only two options. One of the options, frequently adjusting the price to account for any increase or decrease in the cost of production seems not going to be popular with a good number of the populace. And to suddenly make a U-turn and reintroduce subsidy either directly or indirectly will not speak well of the policies of this government.

Personally, I’m not a fan of subsidy. Even when people took to the streets in 2011 to protest the culmination of the subsidy regime by the Jonathan government, my position was clear.

It’s high time the government takes the bull by the horn and make a decisive move to end this menace once and for all.

source: http://www.opinions.ng/really-want-subsidy-regime-back/

I dont think the subsidy is a bad idea (or else it would have not lasted that long) the only problem we have is the Nigeria factor {corruption}. if implemented with transparency it will ease off the cost of leaving for the masses. I believe FG can foot the bill for now while working on a permanent solution.

Why not ...
Subsidy is the only dividends of democracy we enjoy...let them make it #50 per litre..
We will solve the problem of electricity our self by buying generators and cheaper transportation fare

Who subsidy epp?

They will issue subsidy temporarily for the upcoming election. After Buhari is sworn in again, motorists will once more cry blood

No

Subsidy is a waste of money, and it also makes it difficult for marketers to make a profit, and majors to invest.

I used to oppose subsidy till GEJ economic team made me , a PDP opponent, see sense in 2012.

Oil subsidy must go.

Ideally we should pay the market price. The former subsidy created corruption, jobs for the importing forms and other allied service. The current one had made NNPC sole importer of fuel at a loss, offsetting the losses from crude oil revenue

Many people don't even understand what the fuel subsidy means...

Yes o... because they are not using d cash effectively to help d masses

CaptainGOOD:

And you think this thread is a comical one?

Are you just booking space or didn't know what to comment?

Make dem cook beta lie tell us no be dis fuel subsidy wahala again

Yes, let fuel be subsidised so the common man can enjoy our collective wealth. It is better than removing subsidy whereby the looters will have more money to loot from the coffers.

Subsidise; the looters have lesser money to loot and the masses will at least survive.

Since there isn't much the leaders are doing, they can at least bring out some money for subsidy since we know they will spend loot the rest.

neither. we want the economy back


one question i have is since oil fall to as low as 30$ when buhari removed subsidy. now the price have gone up to 69$ per barrel.

now $69 - $30 = $39.

we export over 2.2 million barrel per day

2.200,000 × $39 = $85,800,000 per day.

since extra up to $85m 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.

=====

we should not be talking about subsidy after one year plus. because the last time we talk about it, it was removed. so its buhari headache. they have failed in economics and shifting the blames away from themselves. as a mathematicians the error is not from the price of oil but from bad economics.
its clear because we made more revenue from the same oil which is forex. by now dollar should be around 200 to 250.

Nope

What's my business, when there is no subsidy, what have we been gaining from the government, all the promise they promised is no where to be found, let subsidy come, i don't care.... If there is No subsidy, how will the government ever think of repairing or building a well working refinary.

There is nothing called subsidy - buhari

Buhari said no subsidy,why are you asking me?

pryme:
I dont think the subsidy is a bad idea (or else it would have not lasted that long) the only problem we have is the Nigeria factor {corruption}. if implemented with transparency it will ease off the cost of leaving for the masses. I believe FG can foot the bill for now while working on a permanent solution.

Fg can't foot the bill for subsidy.

They couldn't do so in 2012 under GEJ.,with oil at $100 and above, they can't do so now with oil at $70.

Plus, we need oil to be at $139 per barrel to earn enough revenue to get a budget without borrowing.

Shebi you people think bubu is borrowing too much? With subsidy in place again he would have to borrow more.

Deregulation is better than stagnation

It's not about subsidy
It's about who's running the show

johnshagb:


And you think this thread is a comical one?
Are you just booking space or didn't know what to comment?

It is commical one becoz most nigerians are foolish..

They saw fire and decided to put their hands into it now we are all suffering it... so lets laff it off
Hahaha..

we want subsidy, let fuel be sold that N45 that is want APC fools promised us. we want subsidy, let fuel be sold that N45 that is want APC fools promised us.

What do we know

this is the worse government that Nigeria ever had and some ppl are still blind dnt want to speak the true. when the past government increase the pump price to 87 naira ppl protest n now the pump is 200 ppl are silence hmmmmmm

Nigerians are not objective in approaching situations. Most of us let emotions and sentiments cloud our judgements.


Let drop our individual feelings about the leadership and consider issues objectively. Increase in the price of PMS has been long expected. We were all in favour of subsidy removal, which was (to me) one of the most stoic, brave and biggest achievement of the people and APC government.

Price increment in PMS is not about APC, it's about doing the right thing for the country. All good policies have backlashes which we have to endure for the time being. The future is glorious if you ask me.

No amount of whining and wailing will help. Let contribute our part to nation building.


Long live Nigera

DRJECKYLL:
They will issue subsidy temporarily for the upcoming election. After Buhari is sworn in again, motorists will once more cry blood

Na 2019 tinz. They want to fool Nigerians again. Anything to make buhari win meanwhile he has failed alredy

Opinionated:
By I.A Katagum

What’s all this hue and cry about the insinuated increase in the pump price of the petroleum motor spirit. Don’t tell me you have not seen it coming right from the day you advocated for the total removal of subsidy on the product!

By the way, seems like most us back then, were just shouting ‘remove subsidy’ ignorantly without actually having a grasp of what the removal entails. Only that can explain some folk’s resolve to come back here and start singing direct opposite of what they sang earlier. (we can not buy fuel above N145/ltr).

The last time I checked, removal of subsidy on a particular commodity will mean the same thing as allowing market forces, notably those of demand and supply to determine the price of that commodity. By that singular act of removing subsidy on petroleum products, the pump price of these products has become vulnerable to changes in the cost of production.

Just like the way increase in the cost of production of rice will cause a proportionate increase in the market price of rice, same phenomenon will also apply to unsubsidized PMS.

Lest I forget, a barrel of crude oil was selling below $30 when the subsidy was first removed, and that was why we were able to buy fuel at a reasonable pump price of N145/Ltr.

Now that the the price of crude oil in the international market has rocketed to about $60/barrel, common sense should be able to tell you that the pump price of N145/ltr is not longer feasible, else the marketers will be running at loss. Without subsidy, there is no way the pump price of petroleum will remain stable. It will always change to reflect prevailing realities.

As it stands now, the government has got only two options. One of the options, frequently adjusting the price to account for any increase or decrease in the cost of production seems not going to be popular with a good number of the populace. And to suddenly make a U-turn and reintroduce subsidy either directly or indirectly will not speak well of the policies of this government.

Personally, I’m not a fan of subsidy. Even when people took to the streets in 2011 to protest the culmination of the subsidy regime by the Jonathan government, my position was clear.

It’s high time the government takes the bull by the horn and make a decisive move to end this menace once and for all.

source: http://www.opinions.ng/really-want-subsidy-regime-back/

OP WHO TOLD YOU THE SUBSIDY WAS REMOVED ?

This question should rather be directed to the president.
He removed subsidy on pms without consultations, increasing the price of petrol from N87 to N145 without the knowledge of the NASS.
Pls where did the money meant for the subsidy disappear to without it being captured in the 2016 budget? So also where did he bury money realised from the increase in the price of pms? Since just of recent 'the cat was let out of the bag' that despite subsidy removal with a direct consequence that led to increase in pump price, the government or rather NNPC was still paying for subsidy? From where did they source the trillions of naira?
As it appears, President Muhammadu Buhari has placed Nigeria on a swing, thus the country is responding to THE LAW OF SIMPLE HARMONIC MOTION, without caution nor precautions set or taken.

neither. we want the economy back


one question i have is since oil fall to as low as 30$ when buhari removed subsidy. now the price have gone up to 69$ per barrel.

now $69 - $30 = $39.

we export over 2.2 million barrel per day

2.200,000 × $39 = $85,800,000 per day.

since extra up to $85m 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.

=====

we should not be talking about subsidy after one year plus. because the last time we talk about it, it was removed. so its buhari headache. they have failed in economics and shifting the blames away from themselves. as a mathematicians the error is not from the price of oil but from bad economics.
its clear because we made more revenue from the same oil which is forex. by now dollar should be around 200 to 250.