Over the years, Nigeria has always suffered shortage of petroleum products scarcity during festive period such this, subjecting Nigerians to hardship which is usually created by greedy oil marketers to maximize profits. But suddenly, Christmas and New Year will come, and Nigerians no longer sleeps in petrol stations with endless queues lasting for days, in addition to hike in the pump price.

I am therefore asking: Where are the fuel queues we were used to during the end of year in the recent past?
What's your opinion?

Let's hear it.

Thank you.

Bubu is working

Yes, I can notice too. But I am thinking that it was we Nigerians that were punishing ourselves because we loved seeing others suffer. May God help us

Kwamecron:
Bubu is working

Buhari try for dat side

In the good old days, ie 5 years ago, fuel marketers imported fuel and then got paid a subsidy for selling fuel below the market price.

Problem was, it was becoming difficult to pay the subsidy. Hence fuel queues at the end of the year, as marketers tried to balance their books to prevent losses which would lead them to, among other things, start sacking workers and closing fuel stations to cut losses.

What Buhari did was to stop paaying subsidy to marketers...instead NNPC in theory imports fuel at above N180 per liter, and sells it at N137 to marketers and pays the difference. Marketers then sell to end consumers at N145 and make a profit.

Either way, itr costs Nigeria billions of Naira, and is prone to corruption. But since Nigerians don't want oil subsidy removed....it stays.

As for why we cannot build more refienreis...who is going to spend billions on a refienry, billions refining one liter of fuel at N165 and above...and then sell the same fuel at N145. ?? And lose money??

Okay, well understood.
But in the area of building refinery, Dangote is singlehandedly building a world class refinery from the scratch. What stops our Federal Government with huge financial chest from building new refineries or at least maintain the existing ones to work optimally in order to stop the importation of the refined products?
Me still think that some government officials are benefiting hugely from fuel importation hence no effort to make the refineries to work. It is well

Bedwyr:
In the good old days, ie 5 years ago, fuel marketers imported fuel and then got paid a subsidy for selling fuel below the market price.

Problem was, it was becoming difficult to pay the subsidy. Hence fuel queues at the end of the year, as marketers tried to balance their books to prevent losses which would lead them to, among other things, start sacking workers and closing fuel stations to cut losses.

What Buhari did was to stop paaying subsidy to marketers...instead NNPC in theory imports fuel at above N180 per liter, and sells it at N137 to marketers and pays the difference. Marketers then sell to end consumers at N145 and make a profit.

Either way, itr costs Nigeria billions of Naira, and is prone to corruption. But since Nigerians don't want oil subsidy removed....it stays.

As for why we cannot build more refienreis...who is going to spend billions on a refienry, billions refining one liter of fuel at N165 and above...and then sell the same fuel at N145. ?? And lose money??

When fuel price is increased next year we will all see it

Bedwyr:
In the good old days, ie 5 years ago, fuel marketers imported fuel and then got paid a subsidy for selling fuel below the market price.

Problem was, it was becoming difficult to pay the subsidy. Hence fuel queues at the end of the year, as marketers tried to balance their books to prevent losses which would lead them to, among other things, start sacking workers and closing fuel stations to cut losses.

What Buhari did was to stop paaying subsidy to marketers...instead NNPC in theory imports fuel at above N180 per liter, and sells it at N137 to marketers and pays the difference. Marketers then sell to end consumers at N145 and make a profit.

Either way, itr costs Nigeria billions of Naira, and is prone to corruption. But since Nigerians don't want oil subsidy removed....it stays.

As for why we cannot build more refienreis...who is going to spend billions on a refienry, billions refining one liter of fuel at N165 and above...and then sell the same fuel at N145. ?? And lose money??

No be wetin dem ask you.



Why is there no fuel scarcity?... you dey form analyst

Well this year and last year are good... 2015, 2016, 2017 were terrible years

luluosas:
Yes, I can notice too. But I am thinking that it was we Nigerians that were punishing ourselves because we loved seeing others suffer. May God help us

lol Have Nigerians repented?

luluosas:
Okay, well understood.
But in the area of building refinery, Dangote is singlehandedly building a world class refinery from the scratch. What stops our Federal Government with huge financial chest from building new refineries or at least maintain the existing ones to work optimally in order to stop the importation of the refined products?
Me still think that some government officials are benefiting hugely from fuel importation hence no effort to make the refineries to work. It is well

The solution is a total overhaul of the PETROCHEMICAL industry. This is the secret to our economic prosperity. We need refineries that can crack crude oil into ALL components, to get the proper value for the commodity. This will create business and job opportunities across the value chain and boost our economy.

Weak government policy plus selfishness of fuel marketers caused fuel scarcity years back

Kudos to the present government .

Where u see money to buy fuel

Okoroawusa:

No be wetin dem ask you.



Why is there no fuel scarcity?... you dey form analyst

Because I like analaysing things....it's why my name is Analyzer.

But on a more serious note, it's because the whole fuel pricing thing has interested me for many years...especially since I started driving some ten years ago, and had to think about things like fuel price more.

fyneguy:


The solution is a total overhaul of the PETROCHEMICAL industry. This is the secret to our economic prosperity. We need refineries that can crack crude oil into ALL components, to get the proper value for the commodity. This will create business and job opportunities across the value chain and boost our economy.

Well, the fact is, at the end of the day, one cannot sell PMS at a price less than what it costs to refine it.

That's what is hindering the building of new refineries.

luluosas:
Okay, well understood.
But in the area of building refinery, Dangote is singlehandedly building a world class refinery from the scratch. What stops our Federal Government with huge financial chest from building new refineries or at least maintain the existing ones to work optimally in order to stop the importation of the refined products?
Me still think that some government officials are benefiting hugely from fuel importation hence no effort to make the refineries to work. It is well

1.Dangote is building a refienry...at a cost of $9 billion. $3 billion comes from his pocket, $6 billion came from the banks and other financial institutions...as loans.

2.Government cannot build new refinereis for the simple reason that NNPC is not run as a serious profit making industry. Right now, NNPC is spending billions of naira in subsidising fuel...since thanks to the new arrangements in place since 2017....fuel is now imported and subsidised solely by NNPC.

3.A new refinery....like Danogte's own...costs $9billion at least to build. We probably need three of such refinereis. That takes the cost to $36 billion....13 trillion naira....more than our current budget. (And yes, we have a foreign reserve of $40 billion, but CBN and the Finance Minsitry would scream with horror if government tried to spend that cash).

4.For me the trick to get more refineries (and mind you, there are two other smaller scale refinereis coming up too...and several more in the pipeline)...is simple...remove fuel subsidy, so that it would be profitable for someone to build and run a new refinery...inclduing NNPC. (NNPC also would be cut off from free government money...which would incentivise them to run exisitng and new refineres properly).

The problem is, since 1993...fuel subsidy removal has always been opposed by most Nigerians.

What are you guys hailing him for? We are buying fuel 145 naira the highest ever in Nigeria and X 2 of the amount we bought before he came in. We should have home delivery instead of going to filling station to buy the product. In other gossip, I heard, next year subsidy will be remove so prepare for fuel increase.

It’s a sign of progressive

Bedwyr:


Because I like analaysing things....it's why my name is Analyzer.

But on a more serious note, it's because the whole fuel pricing thing has interested me for many years...especially since I started driving some ten years ago, and had to think about things like fuel price more.

ok

Well, that is true. But individual repentance is what will trigger national repentance. So, if as individuals we fail to repent and stop our sins, there will certainly be no national revival. It is well.

fyneguy:


lol Have Nigerians repented?

Total removal of fuel subsidy will see a boom in Nigeria's economic recovery and speedy development of our father's land. In fact, the corruption in fuel subsidy is the single largest reason our refineries has refused to work. The power that be wants to continue having access to slush funds while the populates recks in abject poverty.
By the time subsidy is totally removed, I think that the money will then be channeled towards our refineries maintenance which will in turn force down the retail price, since there will be absence of middlemen in the chain distribution of refined petroleum products within Nigeria here. That's my opinion though.

Saao:
What are you guys hailing him for? We are buying fuel 145 naira the highest ever in Nigeria and X 2 of the amount we bought before he came in. We should have home delivery instead of going to filling station to buy the product. In other gossip, I heard, next year subsidy will be remove so prepare for fuel increase.

I don't think so in totality. To me, I will attribute this development to strong will power to do the right thing by the Buhari administration. If previous governments had adopted this approach, we won't be talking about this now. Anyway, it's a welcome development. Thank you.

princemillla:
It’s a sign of progressive

No vex sir. I didn't know that all the vehicles in our roads presently are all electric cars, buses and lorries. In fact, I never knew that vehicles now uses ordinary water instead of fuel. Thank you sir.

lastempero:
Where u see money to buy fuel

Who will queue? Why do you need to queue when there's no scarcity of petroleum products?

Wiseandtrue:
Who will queue to get fuel at N145

Some are even selling at N143 to get customer

What about some years before 2015?

deji68:
Well this year and last year are good... 2015, 2016, 2017 were terrible years

Are you saying that Dangote is building his refinery to run at a loss in the long run?

Bedwyr:


Well, the fact is, at the end of the day, one cannot sell PMS at a price less than what it costs to refine it.

That's what is hindering the building of new refineries.

Is Buhari going to increase fuel price or a removal of subsidy? I just need clarifications. Thank you

jconsulting:
When fuel price is increased next year we will all see it

Bring back our queue

luluosas:
Total removal of fuel subsidy will see a boom in Nigeria's economic recovery and speedy development of our father's land. In fact, the corruption in fuel subsidy is the single largest reason our refineries has refused to work. The power that be wants to continue having access to slush funds while the populates recks in abject poverty.
By the time subsidy is totally removed, I think that the money will then be channeled towards our refineries maintenance which will in turn force down the retail price, since there will be absence of middlemen in the chain distribution of refined petroleum products within Nigeria here. That's my opinion though.

thanks for your opinion, but can I remind you that, since buhari took over, he increased fuel from 87 to 145, what did they do with the differences in the increase? Secondly, are you saying individuals are powerful than government especially this buhari government that control other arm of government tyrannically? If any government wants to fail she resort to excuses as the case of this government. Nigerians are already in severe pain adding to their pains it's wickedness in high places. Government functioned as a palliative to the plight of her citizens not to impoverished them as in this government.

For most of Jonathan's govt there's wasnt scarcity till 2014 Xmas which was orchestrated by the APC

luluosas:
Total removal of fuel subsidy will see a boom in Nigeria's economic recovery and speedy development of our father's land. In fact, the corruption in fuel subsidy is the single largest reason our refineries has refused to work. The power that be wants to continue having access to slush funds while the populates recks in abject poverty.
By the time subsidy is totally removed, I think that the money will then be channeled towards our refineries maintenance which will in turn force down the retail price, since there will be absence of middlemen in the chain distribution of refined petroleum products within Nigeria here. That's my opinion though.

That's what I keep telling people, and that's what GEJ tried to do in 2012...but most Nigerians think that low oil prices is a right....even if not sustainable.

Even when showing them the massive corruption in the subsidy regime...all they would say is 'We need more fairness' Well, the subsidy regime is not set up to ensure fairness and freedom from corruption.