The National Economic Council (NEC) yesterday asked its committee to interface with the Nigerian National Petroleum Corporation with a view to determining the correct price of fuel.

The governor of Bauchi State, Mohammed Abubakar, disclosed this to State House reporters after the NEC meeting presided by Vice President Yemi Osinbajo.

The governor, who said the Group Managing Director of NNPC briefed the council on the current fuel scarcity, stated that the committee would consider fuel prices in neighbouring countries.

He said: “The issue is, of course, caused by an interplay of the change rate of the Naira and the Dollar and the price of crude oil at the international market, which affects the landing cost of refined products in Nigeria and in the process, makes the operation of the current price regime almost impossible without some measure of nil return for whoever is in the process.

“As at today, most if not all independent marketers have stopped importing refined products into Nigeria. It is only the NNPC that has been doing it. And the NNPC has been suffering a lot of setbacks. The highest amount of under-recovery; by under recovery, it means the interplay between the landing cost of a litre of the PMS in Nigeria and the pump price of that product.

“If the product lands at N170 for example, and you sell at N145, immediately, you know that you have an under-recovery of about N25 for each litre of fuel. So, he (NNPC GMD) submitted his report and NEC has a committee that has been interfacing with all revenue generating agencies of the Federal Government under the chairmanship of the governor of Gombe State.

“That committee has been charged with the responsibility of interfacing with NNPC with a view to determining the correct price for PMS considering the price of the product in especially countries that are bordering Nigeria, because that is one of the reasons that encourage smuggling of the products to these areas.”

But the Senior Special Assistant to the Vice President on Media and Publicity, Mr Laolu Akande, said government had no plan to hike fuel price.

“We are not expecting any upward review of price at this point,” Akande said.

https://www.dailytrust.com.ng/fuel-scarcity-nec-plans-price-review.html

Hmmmm. Tougher times awaits Nigerians. Brace up yourself for the forth coming hardship.
But who have we offended. Indeed Nigerians need to apologize to GEJ for the OCCUPY protests led by APC in 2012 over the planned increase of fuel pump price. That's exactly what APC is now doing and there is no protest whatsoever

Who can believe these shameless eediots who lie from both sides of their mouths.
There is nothing like subsidy so they said but we later found out nnpc has been paying the subsidy all along since this clueless regime came on board. They further disgraced themselves by denying knowing anything about the subsidy payments.
Now you old hags want us to believe we are not going to face fuel price hike? Awon oloshi oloriburuku omo ole!

Trustme2:
Hmmmm. Tougher times awaits Nigerians. Brace up yourself for the forth coming hardship.
But who have we offended. Indeed Nigerians need to apologize to GEJ for the OCCUPY protests led by APC in 2012 over the planned increase of fuel pump price. That's exactly what APC is now doing and there is no protest whatsoever

There would be protests in the event of a price increase...simply because Nigerians cannot see the benefit of a thoroughly deregulated downstream sector.

There were protests in 2012....because Nigerians only saw that fuel was going up from N65 to N140...later beaten down to N97.Not the long term benefit of more investment...and prices eventually falling.

The solution to this is very simple.

Since the governor of Bauchi state is concerned with NNPC "determining the correct price of fuel" and since Bauchi state is close to Nigeria's international border, I propose that the Federal Government increases the price of fuel in Bauchi and every other state along Nigeria's international border. That way, filling station owners in those states will prefer selling their fuel in the states instead of sending them across the border.

But if this happens, filling stations in states bordering Bauchi and the states along Nigeria's international border will prefer sending their fuel to Bauchi and the states bordering Nigeria's border instead of selling it in their own states. In that case, I propose that the price of fuel should also be increased in the states bordering Bauchi and other states along Nigeria's international border.

Again, if this happens, filling station owners in states bordering the states bordering Bauchi and other states along Nigeria's international border will prefer sending their fuel to those states instead of selling it in their own states.

As usual, I propose that the price of fuel should be increased in states bordering the states bordering Bauchi and other states along Nigeria's international border.

Again, if this happens, filling station owners in the states bordering the states bordering the states bordering Bauchi and other states along Nigeria's international border will prefer sending their fuel to those states instead of selling it in their own states.

So, what do I suggest? That we continue increasing the price of fuel in bordering states bordering bordering states bordering bordering states until it gets down to Lagos and the Niger Delta? That way, the price of fuel in Nigeria will be the same with the price of fuel in neighboring countries. That way, we'll prefer selling our fuel here rather than sending them across the border, rght?

Wrong!

The Bauchi state governor is a good example of a clueless fellow. Rather than suggesting that NNPC "determines the correct price of fuel," he should have suggested that the government equips and recruits more men into the Customs and curb corruption in that same Customs.

Those fuel trucks pass through the borders and the border is manned by the Customs and to a lesser extent, the Immigration, Army and the Police. Most of these trucks pass the major highways and tip the men of these agencies especially the Customs to look the other way while the daring ones will take bush paths where the Customs is almost nonexistent.

This issue here is one that concerns the Customs and the fact that it's happening means the Customs is not doing its job properly.

Review the price if you want,all i know is that Buhari days are numbered.

As usual,the same measure,template neighbors and international excuses..this is where are some years back and here we are again @ same points...We have a rambling constituted power who had no solution to any crisis except "EXCUSES"

Confuse people

oloriooko:
Who can believe these shameless eediots who lie from both sides of their mouths.
There is nothing like subsidy so they said but we later found out nnpc has been paying the subsidy all along since this clueless regime came on board. They further disgraced themselves by denying knowing anything about the subsidy payments.
Now you old hags want us to believe we are not going to face fuel price hike? Awon oloshi oloriburuku omo ole!

1.The 'there is no subsidy' is true. NNPC was the one paying millions of its own money to subsidize the fuel it imported...because selling fuel at the proper price would have been....damaging.Govt refused to pay subsidy

2.And as NNPC was the defacto importer of fuel ....at least for the last two years ....its subsidy regime applied to all.

3.Meanwhile...the govt was bringing in price controls...ie N145...making it difficult for independent marketers to import fuel....and making it difficult for them to sell fuel because they cannot make a profit...especially when it costs N171 to import one liter of uel.

4.So, either govt increases prices again...which works until the oil price rise makes it unfeasible...or they deregulate...which means fuel will be sold for N200-300 per liter...(and more refineries won't bring the price down...because the builders of the refineries have to be paid and the workers too)

But more investment will come in eventually...and prices will come down.

Cromcruach91:


There would be protests in the event of a price increase...simply because Nigerians cannot see the benefit of a thoroughly deregulated downstream sector.

There were protests in 2012....because Nigerians only saw that fuel was going up from N65 to N140...later beaten down to N97.Not the long term benefit of more investment...and prices eventually falling.

So now what has changed? Some of the benefit of total deregulation were also explained to the citizens as at then but we all choose to occupy the street without looking at the bigger pictures and the benefit such genuine actions of government will bring to the citizens but rather we followed APC to occupy the street cos of political sentiment. We are going back to square one to face the music we ran away from in 2012.
In all these APC must apologize to Nigerian for deceiving us

Clowns.

There is nothing like NNPC paying millions out of it's own money.

NNPC does not have it's own money. It is a govt agency. Fully owned and run by govt. All agencies of govt are within purview of govt in it's income and expenditure.

These clowns have been paying subsidy but want to confuse people by naming it "under recovery".

The effect on the balance sheet is the same.

Prices are surely going up, shame such a big shame for the so called gaint of Africa

Let's be ready to reject any plan increase of pump price.

Enough is a enough.

This govt has no Creative solution to d fuel scarcity other than increase in prices. At best they will wait till after 2019 reelection and then effect the increase if they win. Analogue Presidency.

Okay

hisgrace090:
Let's be ready to reject any plan increase of pump price.

Enough is a enough.

Problem is...govt cannot afford paying subsidies anymore....and the marketers of petroleum..both big and small cannot continue to sell fuel at N145...when it costs N171 to import it.

Infact, most marketers cannot afford to import fuel because NNPC is forcing them to sell at a loss.

And more refineries won't solve the problem.

Honestly...we should have deregulated since the idea was mooted in the early 1990's.

Max24:
This govt has no Crest save solution to d fuel scarcity other than increase in prices. At best they will wait till after 2019 reelection and then effect the increase if they win. Analogue Presidency.

Unfortunately, a price increase, or to put it better...allowing marketers to sell fuel at the price they want to sell...similar to what every other business does by the way....is the only answer.

Or we end up taking hefty IMF loans to keep up the subsidy charade., while fuel diversion and scams continue...because marketers cannot otherwise survive financially.

mysteriousman:
Prices are surely going up, shame such a big shame for the so called gaint of Africa

In the US, who will soon be the world's largest oil producer...fuel costs 0.72-0.76 Dollars per liter...or N259-N276 per liter.

That's because the petroleum industry there cannot rely on govt for subsides...so they are free to sell fuel at a profitable price.

And they refine their fuel at home by the way.....

I dnt have much to say than to apologise to GET for protesting against his fuel subsidy removal in 2012, but his action then was untimely......imagine during the xmas/New year celebrations...January 1st 2012....well we are in 2018 now and let forget about NNPC false claims and mathematics of subsidizing fuel, I only wept for Nigeria and the hard times that awaits Nigerians.....the price of fuel will end at N200 last last....

Mobsync:

This issue here is one that concerns the Customs and the fact that it's happening means the Customs is not doing its job properly.

Well, customs should do their job properly...and Bauchi isn't that close to the border by the way....but the reason why diversions happen is because fuel in Nigeria is cheaper than fuel outside the country...and because marketers don't make much profit in Nigeria..they sell to the black market...or sell outside the country...make their profit...and survive.

Better to allow marketers sell fuel at the price they want to sell...and we buy from the cheapest one.

In cameroon...fuel costs 1.20 USD, Benin 0.96 usd, Chad 1.08 usd while in Nigeria it is 0.48USD. Hmm....won't you divert?

Source of costs

Cromcruach91:


Unfortunately, a price increase, or to put it better...allowing marketers to sell fuel at the price they want to sell...similar to what every other business does by the way....is the only answer.

Or we end up taking hefty IMF loans to keep up the subsidy charade., while fuel diversion and scams continue...because marketers cannot otherwise survive financially.

But thats not what they promised us in 2015. They said they have creative solutions but now we can see they are even more analogue than jonathans govt. Nigeria needs digital leadership.

Continue planning! Continue reviewing! Naija a continous sinking ship!

This is the longest fuel scarcity if I'm correct because there seems to be no solution!

OK o

Devil will punish all of you..Lagos was shut down in 2012 when fuel price was increased, now they are planning to increase it again more than 100% of what caused the protest in 2012, yet same people that protested are keeping quiet just because they want to save face.

Hahahahaha... Clowns... So instead of d ediots to open up and tell Nigerians d truth since last year, dey kept playing hide-and-seek and "Blame d other man" as usual.. So it is no longer sabotage? Or bad roads lol? or PDP? or GEJ??
Tell Nigerians d truth and stop feeding lies and propaganda to Nigerians. Where was d Economic Committee wen d govt claimed to have finally resolved d issue wen dey announced #145?? Both d govt and it's supporters are mad...

;next levels

The worst leadership ever in the history of this failed contraption.

The only lasting solution to this reoccurring disaster is to give out bids to reputable private contractors for modular private refineries. We can't keep importing fuel under subsidy that this lie filled Apc government is vehemently denying. Cos i am maniacally bewildered that up till now we still have fuel scarcity issues.

dumo1:
The only lasting solution to this reoccurring disaster is to give out bids to reputable private contractors for modular private refineries. We can't keep importing fuel under subsidy that this lie filled Apc government is vehemently denying. Cos i am maniacally bewildered that up till now we still have fuel scarcity issues.

how?
bewildered?
why?

Cromcruach91:


In the US, who will soon be the world's largest oil producer...fuel costs 0.72-0.76 Dollars per liter...or N259-N276 per liter.

That's because the petroleum industry there cannot rely on govt for subsides...so they are free to sell fuel at a profitable price.

And they refine their fuel at home by the way.....

Each time comparisons are made, you people will just be making baseless dollar to naira conversion..

So people make money in naira in the US?

Simple economics.