Cromcruach91:


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.

baralatie:

how?
bewildered?
why?

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!

dumo1:

Cos i thought it was only a december issue but i am hearing of minor scarcity in some places.

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

chinedu234:
. Please note that the terms have changed. It is no longer subsidy. It is now UNDER RECOVERY. Now why don't we hail this ingenuity.

Dindondin:
No apologies to GEJ. He's as guilty as PMB. Cos he too would v increased it go N145 if he's still the president. Nigeria needs a totally different option from APC and PDP. We need sincere technocrats, not politicians.

Cromcruach91:


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?


Is quite unfortunate that you arw here only to support ungodly act of this present government. With your responses to people's comments I denoted that you have not seeing anything wrong with lies of APC led government. Maybe you are justifying their acts base on sentiments, who rules now and who rules before. In 2012 they was a stated analysis reasons for pump price increase but we due some unreasonable sentiments rejected all, we was government action then as wicked and evil but today, you guys are seeing them as Saints. My brother, I believe you are comfortable with the circumstances oh Nigeria people today.
The truth will fail to tell today will haunt us tomorrow.

Source of costs

baralatie:

because at the time of lower oil prices the price of importation was so low that the sale price of 145 was an overprice but now with an increase in price of oil comes an increase in import and with an increase in the exchange comes a bigger issue of cost in the naira.
2.there was no plan or execution that prepared the nnpc for this stage therefore wahala of subsidy was not resolved.
3.pmb is putting all his hopes and dreams that dangote refinery will start production.dangote is looking at pmb with corner eye

baralatie:

GEJ only announced increase and the whole APC and nairaland including pastor bakare with the nlc,tuc went to ojota for mass strike.
please GEJ should be left of this issue

baralatie:

GEJ only announced increase and the whole APC and nairaland including pastor bakare with the nlc,tuc went to ojota for mass strike.
please GEJ should be left of this issue

dumo1:

so in other words exchange rate of dollar to naira is also a major underlying factor here?

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.....

gaskiyamagana:
We avowed supporters of Buhari will be arch enemies if they increase petrol price. It was increased from #97 to #145, difference of #48. There is no Nigeria Government of such increament at a time. Besides, there is no increament, not even of such amount, without any form of relief to workers.
I am too sure that any increament will jeopardise re election bids of Buhari.

baralatie:

for example!
1.let us assume

2014,10000 litres @ $1 for fuel=$10000×150=#1500000


2018,10000litres @380 for fuel=#3800000

then we have the cost of distribution,taxes etc

joudini:
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.

Cromcruach91:


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.

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

Enough is a enough.

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.....