Fayose has said it before. So you guys should expect increase in the pump price anytime soon.

Are you telling us that president Buhari didn't understand what is fuel subsidy or what he said is a scam?

no wonder that lia muhammed said ,"a day without lying is a waste

ednut1:
Diesel is 260 without subsidy. Petrol hmmm

let's start assuming........
hahahahahaha!

You won't calm down to read... just keep on making a fool of yourself

justphillips:


And your point is See why this country will never get better, never! We have idiots and fools amongst us, that is if this mumu isn’t from Sudan sef

electric car here i come shit hole zoo

Who will now lead the #OccupyNigeria protest when the people who led the last protest are now the ones planning to remove the subsidy?

urahara:


Earning power has nothing to do with how much we should be paying as the marketers have to stay in business

when comparing you should also consider standard of living and electricity supply of other countries too.

theoldpretender:


The problem is...you misunderstand what subsidy removal entails...which is why you 'beleived the lie' of subsidy removal.

Subsidy removal works when

1.Government STOPS setting prices

2.Government allows marketers to set their OWN prices.

3.In theory...that means that if Bubu removes subsidy...NNPC sells fuel at N200, Total sells fuel at N230, Oando at N240, Conoil at 235, Forte at N245.

4.Again in theory...Nigerians buy fuel from the guy with the LOWEST prices..(NNPC has long queues, others have very few cars). Competition sets in, prices go down.

5.We saw this in the GSM industry. Prices initially high (my dad's MTN sim cost him N10000. Needless to say, he has not changed that line at all!).then fell due to competition, fresh investment, new faces, better technology brought in.

and you think if these marketers are allowed to fix their own prices they will not gang up to fix the price a high as #500 /ltr?. Oil markers are made up of the most self centered crooked Nigerians.

frenzyduchess:
when comparing you should also consider standard of living and electricity supply of other countries too.

Jesus Christ !!!

The laws of demand and supply controlling the international oil price does not give a feckk about standard of living .

frenzyduchess:
and you think if these marketers are allowed to fix their own prices they will not gang up to fix the price a high as #500 /ltr?. Oil markers are made up of the most self centered crooked Nigerians.

Say you are in business, you buy some yam for N800, and you want to sell them at N1200...per tuber.
Government steps in, insists you sell the yam at N500, and tells you they will give you N200 per tuber sold as 'subsidy claim'

Would you agree?

That's what they have been doing to the marketers all these years...and why many of them do things like

Make subsidy claim for fuel not imported
Sell fuel in other countries...

So that they can make profits, enough to keep their employees, and enjoy life.

urahara:


Refineries which are defunct and which the government can never revitalize and which private investors can never invest in because the oil subsidy sham will require them to operate at a huge loss

So u are confirming what d other guy said that we don't have any business importing petroleum products

theoldpretender:


We have four new refineries...and the last one was built in 1988...30 years ago.

Since then, our needs have increased.And the refienries no has not increased.

This is due to several reasons

1.NNPC is a govt run business...and most NNPC workers treat it as such.

2.Due to subsidy...NNPC does not make enough cash to build new refineries.

Now...to improve the no of reifieries...we have to stop government from setting the price of fuel..ie removing sbubsidy.

Yes...Dangote refinery...BUT...Dangote probably spends more than N150 to make one liter of fuel. I doubt he is going to sell fuel at N145 per liter.

So in d end, Nigeria doesn't any business importing fuel in d first place.
But which subsidy are u talking about? Is it d one that buhari said is a fraud and that doesn't exist?

lexy2014:

So in d end, Nigeria doesn't any business importing fuel in d first place.
But which subsidy are u talking about? Is it d one that buhari said is a fraud and that doesn't exist?

Well, since we need at least four new refineries the size of Dangote's refinery to stop importing...and we may need new ones as our needs go up....I doubt we need to stop importing.

I hate defending the APC...but for the record...Buhari was refering to the scams which led to peoplelike Otedola and company get imprisioned...as well as the kerosene subsidy scam...

The cold reason, however, why government keeps on controlling prices is that it does not want to be thrown out of power.

P.S
Our refineries can only produce less than 30 million liters of fuel per day. The last one was opened in 1988...since then our needs have increased.

theoldpretender:


Well, since we need at least four new refineries the size of Dangote's refinery to stop importing...and we may need new ones as our needs go up....I doubt we need to stop importing.

I hate defending the APC...but for the record...Buhari was refering to the scams which led to peoplelike Otedola and company get imprisioned...as well as the kerosene subsidy scam...

The cold reason, however, why government keeps on controlling prices is that it does not want to be thrown out of power.

P.S
Our refineries can only produce less than 30 million liters of fuel per day. The last one was opened in 1988...since then our needs have increased.

What has this govt done to put an end 2 importation by increasing local refining capacity?

Buhari was referring to so so so and so. Dude, what were those guys doing then that they are doing differently now. When buhari said fuel subsidy doesn't exist, who was he referring to?

lexy2014:


What has this govt done to put an end 2 importation?

Nothing...

But they can do something...remove subsidy and allow marketers set prices or the market to set the price of fuel and other refined products

That attracts investments/investors...who might build new refineries among other things.

The problem is....fuel prices go up...AND that means that the political elite get thrown out of office.

That's why governments, even strongmen governments like the Abacha government...kept subsidy...and raised the price when the landing/import costs were far ahead of the officialprices.

Problem is, marketers end up operating at a loss all the time.

Buhari was referring to so so so and so. Dude, what were those guys doing then that they are doing differently now. When buhari said fuel subsidy doesn't exist, who was he referring to?

Bubu was speaking as an opposition leader then...tapping into the anger of Nigerians to get elected.(That is what opposition pols do...they make comments to get elected. ).

But the reason why subsidy scams existed was

1.Before 2015...marketers were importing fuel at a high price...and selling it at the subsidised price of N87

2.This led to losses....

3.So marketers did things like making subsidy claims for fuel not imported, and smuggling fuel and selling it in neighbouring countries, or on the black market.

4.Then there was the kerosene subsidy which was removed...yet someone was still paying it. That was part of the then CBN governor Sanusi's cry about $20million missing.

That's why Bubu said subsidy was a scam.

But because Bubu said subsidy is a scam does not mean subsidy does not exist. It did...and it exists AS LONG AS GOVERNMENT SETS THE PRICE OF FUEL.



What Bubu is now doing is importing fuel via NNPC....alone. And subsidising the fuel via 'creative accounting'....leading to the subsidy mess. It is a temporary fix...but it does not solve the problem.

And the politicans all do it...because the alternative...removing subsidy .....is going to lead to a revolution.

theoldpretender:


Nothing...

But they can do something...remove subsidy and allow marketers set prices or the market to set the price of fuel and other refined products

That attracts investments/investors...who might build new refineries among other things.

The problem is....fuel prices go up...AND that means that the political elite get thrown out of office.

That's why governments, even strongmen governments like the Abacha government...kept subsidy...and raised the price when the landing/import costs were far ahead of the officialprices.

Problem is, marketers end up operating at a loss all the time.



Bubu was speaking as an opposition leader then...tapping into the anger of Nigerians to get elected.(That is what opposition pols do...they make comments to get elected. ).

But the reason why subsidy scams existed was

1.Before 2015...marketers were importing fuel at a high price...and selling it at the subsidised price of N87

2.This led to losses....

3.So marketers did things like making subsidy claims for fuel not imported, and smuggling fuel and selling it in neighbouring countries, or on the black market.

4.Then there was the kerosene subsidy which was removed...yet someone was still paying it. That was part of the then CBN governor Sanusi's cry about $20million missing.

That's why Bubu said subsidy was a scam.

But because Bubu said subsidy is a scam does not mean subsidy does not exist. It did...and it exists AS LONG AS GOVERNMENT SETS THE PRICE OF FUEL.



What Bubu is now doing is importing fuel via NNPC....alone. And subsidising the fuel via 'creative accounting'....leading to the subsidy mess. It is a temporary fix...but it does not solve the problem.

And the politicans all do it...because the alternative...removing subsidy .....is going to lead to a revolution.

Bros u are trying 2 defend d indefensible. " govt needs 2 remove subsidy 2 attract investors/investments that will build local refineries". How did u come about that theory? Is dangote refinery not an investment? Which subsidy was removed b4 work started on it? What in d world is "creative accounting"? Fuel subsidy dates back as far a d IBB era. They have been removing subsidy since then. Till now, its still ongoing. All u have written is like going round in a circle.

D question u are refusing 2 ask urself is y did they allow d refineries 2 run aground? If u can answer that, then u will understand d business & profiteering side of fuel subsidy

lexy2014:


Bros u are trying 2 defend d indefensible. " govt needs 2 remove subsidy 2 attract investors/investments that will build local refineries". How did u come about that theory? Is dangote refinery not an investment? Which subsidy was removed b4 work started on it? What in d world is "creative accounting"? Fuel subsidy dates back as far a d IBB era. They have been removing subsidy since then. Till now, its still ongoing. All u have written is like going round in a circle.

D question u are refusing 2 ask urself is y did they allow d refineries 2 run aground? If u can answer that, then u will understand d business & profiteering side of fuel subsidy

Dangote got a nice set of loans to build his refinery. Add the fact that subsides are not being paid on diesel and kerosene and other products since 2013 at least....

Refineries ran around because bad management. That is why NNPC needs to be privatised

Anyway, if the refineries were working at full capacity, our fuel consumption is far.higher.than what they can accommodate.

theoldpretender:



Dangote got a nice set of loans to build his refinery. Add the fact that subsides are not being paid on diesel and kerosene and other products since 2013 at least....

Refineries ran around because bad management. That is why NNPC needs to be privatised

Anyway, if the refineries were working at full capacity, our fuel consumption is far.higher.than what they can accommodate.

This is y I said u are trying 2 defend d indefeasible. I didn't ask u if dangote got loans. I asked u is dangote refinery not an investment? Even if he got loans, are other investors prevented from getting d same loans?
According 2u

"remove subsidy and allow marketers set prices or the market to set the price of fuel and other refined products

That attracts investments/investors...who might build new refineries among other things."

What subsidies were removed that allowed dangote decide 2 build refinery?

theoldpretender:


Refineries ran around because bad management. That is why NNPC needs to be privatised

Ur quote above speaks of "how" they were run aground. That is d process by which they were run aground. It doesn't speak of "why". Which is d reason they were run aground. How& why are 2 different things. I asked 4d why not d how.

theoldpretender:


Anyway, if the refineries were working at full capacity, our fuel consumption is far.higher.than what they can accommodate.

This still brings u 2d issue of why were d refineries allowed 2 run aground. If u no that, then d question of increased consumption would also b taken care of. Always have in mind d business & profiteering side of fuel subsidy

CityNGR:
Until fuel subsidy is removed, fuel crisis remains imminent – Kachikwu



Read more at: https://www.vanguardngr.com/2018/12/until-fuel-subsidy-is-removed-fuel-crisis-remains-imminent-kachikwu/

This's a nice development!
Sir, could you take a step further and propose this to the federal govt. and make it public?

theoldpretender:


The problem fantasy if ou misunderstand what subsidy removal entails...which is why you 'beleived the lie' of subsidy removal.

Subsidy removal works when

1.Government STOPS setting prices

2.Government allows marketers to set their OWN prices.

3.In theory...that means that if Bubu removes subsidy...NNPC sells fuel at N200, Total sells fuel at N230, Oando at N240, Conoil at 235, Forte at N245.

4.Again in theory...Nigerians buy fuel from the guy with the LOWEST prices..(NNPC has long queues, others have very few cars). Competition sets in, prices go down.

5.We saw this in the GSM industry. Prices initially high (my dad's MTN sim cost him N10000. Needless to say, he has not changed that line at all!).then fell due to competition, fresh investment, new faces, better technology brought in.

Deregulation of the fuel price should not be likened 100% to what happened to the telecoms sector. It will be sheer fantasy if that is done.

The reason why is that telecoms is a service while Petrol is s product.

A service can be sold at any price, all depending on the discretion of the provider.

A typist may decide to type your project at 80naira while another for 100naira. At times, the difference can be very large as some work on value quantity while others may be bespoke services. As long as your cost of service covers your running cost and there's a profit, okay

For instance, an internet marketer may decide to sell an eBook for $97 while another may decide to give out as a freebie at no cost. He might be making his money from links in the eBook to products or services he is an affiliate to.

On the other hand, for a product, you have very little discretion. Your selling price is influenced greatly by your cost of acquiring the product. Local competition may not be sufficient to bring down the price as the price may be fixed by global forces.

To understand what I'm saying, just check out the price of diesel which has no subsidy. is about 260. Competition has failed to bring down the price to 150.

Unless the international price drops, please perish the thought.

However, the real benefits to the petroleum sector with the removal of all subsidies is that it will encourage massive investments in the downstream sector of the economy just like what happened in the telecoms sector.

emmykey0128:
This people always think we are fools or zombies,they organized protest in Gani fawehinmi park when GEJ said he want to remove subsidy, buhari said there is nothing like subsidy and its a scam,when he came in,he said he will remove subsidy thereby we started buying fuel at 145 because they claimed subsidy has been removed ,there are indications that fg still pays subsidy but they keep denying it because they don't want us to know that we have been scammed by fuel increment, now they have come out to say subsidy needs to be removed again, so they have been paying subsidy stylishly underground all this while?they why the increment when we still pays subsidy? The amount of corruption going underground under this man is more than GEJ, I am so sorry GEJ for campaigning against you

lol
Iee ihe e mere onwe gi

Btw-this theoldpretender and uharara Abi Na uhuru, why are you guys painstakingly explaining all these, during gej's Tenure did u guys not know it would be beneficial to remove the subsidy?..... Now you are here defending your foolish option (BuBu) Mtchew!!!

Karma is a Bitch!

U ppl should go and OCCUPY NIGERIA again naw.
Nonsense

ezkimow:



lol
Iee ihe e mere onwe gi

Btw-this theoldpretender and uharara Abi Na uhuru, why are you guys painstakingly explaining all these, during gej's Tenure did u guys not know it would be beneficial to remove the subsidy?..... Now you are here defending your foolish option (BuBu) Mtchew!!!

Karma is a Bitch!

U ppl should go and OCCUPY NIGERIA again naw.
Nonsense

Twas under GEJ regime that I first became convinced that subsidy must go.

In fact since 2012 I have been of the opinion that subsidy has to go, and have been following the matter since 1993.


I am also not into your PDP and APC nonsense.

Take your karma elsewhere.

theoldpretender:


Basically we import most of the fuel we use.

We only have four new refineries, and we need to build at least 4 more to keep all refining at home. The last new refinery we had was opened in 1988...30 years ago. Since then population has increased, cars and generator has increased.

In 2015 , when government increased the cost of fuel, the landing cost was N132. We were selling fuel at N87 per liter. The marketers were losing at least N50 per liter of fuel...so govt 'increased fuel prices'..ie partial removal of subsidy.

Now that landing cost is N195. Fuel is sol;d at N145. NNPC is doing corrupt Baru economics to 'subsidize fuel' A complete and total removal of subsidy would end all those abuses...and yes, fuel will go up to N200 and above.

BUT....investment would flow in, we would probably have more new refineries, and the scams would end.And crucially...prices will fall.

keep deceiving yourself ...so the citizens must bear the brunt of govt misdeeds all the time ?If you no that building refineries would solve the problem how comes the govt does not know that ? Let me ask you ...do you even know how many barrels of crude Nigeria produces in a day?

theoldpretender:


Basically, no one wants to remove fuel subsidy.

Are u juggling ur ballz, what did Jonathan do? Please

ezkimow:


Are u juggling ur ballz, what did Jonathan do? Please

Partial removal

ezkimow:


Are u juggling ur ballz, what did Jonathan do? Please

He tried, see how Nigerians responded....

It is no popular move.

olisaemeka1:
keep deceiving yourself ...so the citizens must bear the brunt of govt misdeeds all the time ?If you no that building refineries would solve the problem how comes the govt does not know that ? Let me ask you ...do you even know how many barrels of crude Nigeria produces in a day?

Two million barrels.

Yes, the government knows. But building a new refinery costs $9bn, we need three new ones at least...and our reserves would be depletedif we used it.

And we live in a democracy. If you don;t like your government, use your PVC.

theoldpretender:


Two million barrels.

Yes, the government knows. But building a new refinery costs $9bn, we need three new ones at least...and our reserves would be depletedif we used it.

And we live in a democracy. If you don;t like your government, use your PVC.

If dangotes refineries are completed, do you think it would be able to meet up with nigerias demand ?

And at what price do you think he would sell for ?

urahara:


If dangotes refineries are completed, do you think it would be able to meet up with nigerias demand ?

And at what price do you think he would sell for ?

Personally, I doubt...and I think he would be selling PMS higher than N145.

Let's wait and see though.

(When the refinery comes on stream, it would only refine 300000 barrels, then eventually go up to 600000 barrels by 2030)

theoldpretender:


Personally, I doubt...and I think he would be selling PMS higher than N145.

Let's wait and see though.

(When the refinery comes on stream, it would only refine 300000 barrels, then eventually go up to 600000 barrels by 2030)

Do you think the govt would give him protection to run things like a monopoly just as he is doing with cement ?

theoldpretender:


Personally, I doubt...and I think he would be selling PMS higher than N145.

Let's wait and see though.

(When the refinery comes on stream, it would only refine 300000 barrels, then eventually go up to 600000 barrels by 2030)

And what if the fg decides to subsidise his fuel ?

urahara:


And what if the fg decides to subsidise his fuel ?

I doubt government has money to subsidize fuel...what with corruption and the international oil price being below $100 (we need it at $140 for a balanced budget).

The fact that we are paying subsidy claims from the last admin...shows that we can't sustain this subsidy thing.

Subsidies also means poor profit for Dangote....he would earn more if he is allowed to set his price.