i thought the government said fuel consumption had reduced due to border closure. where is d "savings" going to. it should have resulted in increased revenue except its all "audio"

nothingspoil70:
I beg to disagree sir

dangote refinery will the only one in the country, economics tell us thata monopoly facing no competition can charge an arm and a leg and people will still buy their goods.

just watch and see.

Very predicable. They will soon set the zombies loose to rant about the important of increasing PMS prise

sotall:
Ok

So the price increase in crude oil cannot offset the price increase in petrol

SMH for useless government.

You sell your raw material cheap and then buy finished product very expensive

This their post makes no sense. I'll admit, its normal of this government. When oil price in the international market is high, then importers will make a loss will they sell low in Nigeria.

So the government pays these guys the difference to keep prices low here.


By this logic, shouldn't subsidy payment reduce when oil prices drop?

Bros. i will go with you!

Happyguy201:
im leaving this country to kaduna . i cant take this anymore

itsme01:




Ipobian.. this is the impact of war on global economy.. you people were hailing trumps decission

Now Ikpeazu that is owing 23 months salary wont even give your father a kobo since he now has an excuse


..

U r mentally retared..are we not suppose to benenfit from increase crude oil price?

The world gave us opportunity to sell our crude oil at higher rate, yet we are still increasing fuel subsidy internally to negate the blessing...

Don't u have a brain to use?

na una know oo

sotall:
Ok

So the price increase in crude oil cannot offset the price increase in petrol

SMH for useless government.

You sell your raw material cheap and then buy finished product very expensive

Imagine it, but I don't think It's about selling cheap and buying expensive - it's that they're planning their looting already.

Aren't we going to make more money from oil sales? Did customs not say recently that national fuel consumption was greatly reduced due to the border closure? What about the excess crude account? So many questions, but it's the same-difference really.

Nigeria Government I hail oh - Aloota Continua!

Trust Nigeria leaders, that's opportunity for them to make money.

medalz:
It is so disheartening the way this country is being run hypocritically. We are currently making high revenue due to the increase in crude oil price. However, since they've refused to make our refinaries functional while importing refined petroleum and consequently paying back crude oil profits.

1.First, we are not making enough money from oil that would be sufficent enough for our needs due to high population. Until oil surpasses what international experts call the 'breakeven oil price' (which for 9ja is $139 per barrel)...we won't be making enough money for oil.

2.Second, subsidy prevents NNPC from making enough of a profit to maintain and build new refierneries. (It is also the reason why out of 61 licences issued for refinereis, only Dangote and two or three others are on ground...and Dangote is the only mega refinery, the next largest has a capacity to produce a third of what Dangote would be producing)

Here is how subsidy works. I am selling coca cola. I buy at N100 and sell at N150. Government steps in and forces me to sell at N50 and pays me subsidy of N50 per bottle sold meaning I make a profit of N0. Meaning I cannot pay my workers, buy new stock easily, and run at a loss...so I sell on the black market at N200 to make a profit...or close shop.

In Nigeria, we sell fuel at N145. Actual price is anything between N200-300. Because of subsidy, NNPC cannot make enough cash to maintain and build new refinereis, because it isn't earning enough profit...and any profit it makes goes to imporiting fuel, and paying for the subsidy (under the new arrangement that exists since 2017)....

And the reason why subsidy is in place is because Nigerians want it there....because people don't want to pay N200 and above for fuel (meanwhile most West African countries pay N300 and above per liter for fuel...which is why smugglers smuggle fuel there)

quentin06:


you think dangotes fuelwill be cheap?

it will cost more than his cement.

I doubt it would cost more than the cement (lol.)...but you are right.

The truth is, Dangote took a loan to build that refienry...and he has to pay it back.

jamace:
A cabal is siphoning Nigeria money in the name of subsidy. Buhari needs to personally investigate this subsidy of a thing. I suspect a great fraud going on.

Buhari needs to personally investigate? Does he have the intelligence or sincerity to do that? You Yoruba muslims overestimate Buhari.

Mikelarteta:
I thought the Dullard said there is nothing like subsidy? God will surely punish all these APC members, they lied their way to government and still lying to stay in government. Imagine after increasing pump price from N87 per litre to N145 per litre these idiots are still talking about subsidy and some morons here on NL will still carry Buhari for head.

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AMERICAisKING:
By the grace of God i can now go to sleep with my TWO eyes closed knowing President Donald Trump got my back, no more underground plots of terrorism that goes on and nothing happens as it used to be the case during Obama era, now its fire for fire, if you think you can disturb world peace Trump will TAKE YOU OUT! To hell with Islam!, let them do their worse, they are known for it anyways but they will and must not MISS paying for their mistakes with THEIR OWN LIVES. No more tolerating these known ENEMIES OF PEACE called MUSLIMS, you kill and you get killed simple!. Bring it on IRAN!!!

Mumu post

hotwax:


U r mentally retared..are we not suppose to benenfit from increase crude oil price?

The world gave us opportunity to sell our crude oil at higher rate, yet we are still increasing fuel subsidy internally to negate the blessing...

Don't u have a brain to use?

honestly arguing with a dunce is bad, but sometimes you have to set the records straight..

we sell unprocessed and unrifined crude product of 2mbpd, JVC arrangement sees OIC and local well owner take a percentage while NNPC takes the rest... now the problem here that sensible people already noted is our subsidised consumption of 417 thousand barrels per day that we pay to ship off , refine and ship back at tripple the price

so if you had any brain you would do the math

Awoo88:
Very predicable. They will soon set the zombies loose to rant about the important of increasing PMS prise

I don't support this government, or the ones before it, yet have been convinced that subsidy has to go since 2011...when GEJ attempted to remove it...because the arguments made sense.

I mean, the Emir of Kano is probably not on GEJ's BFF list...yet he supported the subsidy removal then or now.

The truth is, if you were in business, and you bought goods at N1000 and sold at N1500...and government steps in and tells you to sell at N750...and pays you subsidy of N250...how would you make a profit.?

I mean, why set up a refinery, refine fuel at N150 and above...and then sell it at N140??

That's how we have been doing our fuel industry. Add the corruption and the mess around subsidy payments...and the whole problem is compelte.

jamace:
A cabal is siphoning Nigeria money in the name of subsidy. Buhari needs to personally investigate this subsidy of a thing. I suspect a great fraud going on.

Has he not being the petroleum minister since 2015?
Just as he was in the 1970s under Obasanjo?
And he was Petroleum Trust Fraud, PTF Chairman under lootocrat Abacha?
What else is he investigating apart from his own thieving self?


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Mikelarteta:
I thought the Dullard said there is nothing like subsidy? God will surely punish all these APC members, they lied their way to power and still lying to remain in power. Imagine after increasing pump price from N87 per litre to N145 per litre these idiots are still talking about subsidy and some morons here on NL will still carry Buhari for head.

The Dullard said that because, like most Nigerians then, he did not understand how subsidy worked...or why GEJ had to icnrease prices from N65 in 2010 to N97 in 2011.

(Indeed it was that lack of understanding that made Bubu to support the 2012 anti-removal of subsidy protests....which led to GEJ reversing price increases from N65 to N140 and then back to N97..which came back to sting APC when they found out in 2015 that they could not pay subsidy claims due to the markedly low oil prices...which was what GEJ , NOI and even the Emir of Kano foresaw...)

Excuses being made in advance to cover up the planned looting from the impending war between Iran and USA that will make oil prices go up.
They forgot they told Nigerians that consumption of oil has reduced since the border closure.
The question now is, if the consumption of oil has reduced because of border closure ...........

Gwilym:
Happy New Year.

1.Basically, as oil prices go up , the cost of fuel goes up, the cost of importing fuel goes up, and the cost of subsidy goes up.

2.And the reason why we cannot produce fuel at home in Nigeria is because subsidy means that any fuel NNPC refines at home would be sold at a loss, reducing incentive to build new refienreis. It is the same reason why very few people, apart from Dangote (who has adequate sources of cash eslewhere) are building new refinereis.

3.The subsidy thing too is fuelling corruption.

4.Basically, oil subsidy MUST go...for

a) More investment in refinereis, since people can now refine and sell fuel at a profit.

b) An end to smuggling, and thus an end to broder closures...since no one would be buying fuel at N140 and selling it in Benin and Niger for N300 and above, and pocketing the profit at our expense.

c) More refienreis, which means more jobs.....and more income...as we become an exporter of fuel.

d) Finally, an end to fuel subsidy cabals, and more savings for government...meaning less recourse to taking loans.

Oil subsidy must go.

As much as you are right, do you think Nigerians will not shout if subsidy is remove and price of pms increases? Secondly we need to build more refineries for price to regulate, second those Nigeria refineries are outdate and it will cost lot of money to build new ones repairing those old ones is just waste of money. The truth building refineries is a have task most Nigerian can do, except the modular ones which produces less, so the other way round is to encourage foreign investors to build either thru government and private investment or fully private investment . The truth most people commenting don't even understand what all these susbsidy is all about .

ebube89:
i thought the government said fuel consumption had reduced due to border closure. where is d "savings" going to. it should have resulted in increased revenue except its all "audio"

Nigeria isn't earning enough cash from selling oil. Which is why we have to diversify away from oil....

Before this country spoil, I must have given belle to 5 different foreign female nationals.

Thunder fire APC supporters

The Fulani cabal have finished me.

With recent instability in the middle east Oil prices are higher than ever, yet they claim less oil revenue than before.

At the same time they claim having to increase the fuel subsidy and yet as others have pointed out fuel prices have risen.

Buhari and his Northern disciples are thieves as well as bad liars

Gwilym:
I don't support this government, or the ones before it, yet have been convinced that subsidy has to go since 2011...when GEJ attempted to remove it...because the arguments made sense.

I mean, the Emir of Kano is probably not on GEJ's BFF list...yet he supported the subsidy removal then or now.

The truth is, if you were in business, and you bought goods at N1000 and sold at N1500...and government steps in and tells you to sell at N750...and pays you subsidy of N250...how would you make a profit.?

I mean, why set up a refinery, refine fuel at N150 and above...and then sell it at N140??

That's how we have been doing our fuel industry. Add the corruption and the mess around subsidy payments...and the whole problem is compelte.

www.nairaland.com/attachments/2606941_fuelsubsidygovernorssupport2011d_jpegc347aadcc28645a881c11e877b19ae27


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Keemsleek005:


As much as you are right, do you think Nigerians will not shout if subsidy is remove and price of pms increases?

They would shout, and yes, in the short term, food prices would rise.

But the thing is, Nigeria is not really earning enough cash. And since 2012...and even since 2017...oil has to be above $120 before we can even make a decent enough income

Secondly we need to build more refineries for price to regulate, second those Nigeria refineries are outdate and it will cost lot of money to build new ones repairing those old ones is just waste of money. The truth building refineries is a have task most Nigerian can do, except the modular ones which produces less, so the other way round is to encourage foreign investors to build either thru government and private investment or fully private investment . The truth most people commenting don't even understand what all these susbsidy is all about .

The problem is, it costs at least N180 (estimates)...to refine one liter of fuel. Would you build a refinery, refine fuel at N180, and sell to marketers at N140...and all you get is N40 from government for every liter of fuel sold in lieu of profit? Or would you prefer a government that allows you to refine fuel at N180 and sell at N200 and above...and make a decent profit that enables you to pay workers decent salaries, and keep the refinery well maintained and pay for upgrades where needed.??

I mean, you see why out of 61 licneces issued since 2011...less than 5 are buidling something.

The issue is subsidy would force a refinery owner to run at a loss. That's why apart from Dangote and a few others...no one is building refinereis, and why NNPC does not have the money to build new refineries.

nedekid:

Mumu post

Yoruba Muslim your end is near, keep on reading your terrorist manual called Koran first!

Qadaffi2idiamin:
Thunder fire APC supporters

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Gwilym:
They would shout, and yes, in the short term, food prices would rise.

Is that not how it happened in 2000 when telecoms was privatised until the prices started crashing with competition

anonimi:



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They are covered in lies, $1 to N1.

get rid of the embarrassing odour less than 3minutes call 08067405426

ebube89:
i thought the government said fuel consumption had reduced due to border closure. where is d "savings" going to. it should have resulted in increased revenue except its all "audio"

You are obviously not one of those BMC people with their miserable N30,000 pay to defend the indefensible and justify the unjustifiable. They don't ask cogent questions like these.
I thank God for your life.


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