Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,547,114 members, 5,864,291 topics. Date: Friday, 18 September 2020 at 06:40 PM

Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? (26078 Views)

Border Closure: Are We Truly Self Sufficient In Food Production? / US Visit:World Leaders Won’t Do Business With Atiku If Elected President– Keyamo / PDP May Replace Atiku If .............. (2) (3) (4)

(1) (2) (3) (4) (5) (6) (7) (Reply) (Go Down)

Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Islie: 12:59pm On Sep 08
Former Vice President Abubakar Atiku has again punctured the recent deregulation in petroleum that has led to an increase in fuel price, asking “If we truly deregulated, shouldn’t fuel price drop?”

Atiku, in rhetorics on his verified Twitter handle Tuesday morning, tweeted that as a businessman, he is more concern with the economic perspective of things.

He pointed out that in the US and Europe, fuel prices are far lower than they were in 2019.

Then he asked in a ponderously, “If we truly deregulated, shouldn’t fuel price have dropped?”

Atiku had, four days ago, rejected the increase in electricity tariff describing the move as “ill-timed and ill-advised.”

He also described the move as an “impetuous disregard for the challenges.

“I reject the increased electricity tariffs. Coming out of the lockdown, Nigerians need a stimulus, not an impetuous disregard for the challenges they face.

“Many Nigerians have not earned an income for months, due to no fault of theirs. This increase is ill-timed and ill-advised,” he said.

Nigerians have however been reacting to the development on the increment in petrol and electricity tariffs, stating their displeasure considering the economic status of the average Nigerian.

VANGUARD

15 Likes 3 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Officialgarri: 1:14pm On Sep 08
Atiku better sit down patiently with the person that explained the economics behind deregulation instead of rushing to social media.
These people called Politicians are just as dumb as anyone.

Fine, when Buhari first deregulated in 2016, Oil price dropped "due to competition" by 1 naira, but what happened after, it flew right up to #145.
This is because Oil is always in high demand and the higher the demand the higher the price.

Officialgarri's law states that "Any product with increasing demand and without corporate regulations will have it's market price competing mostly at increasing prices" e.g Cryptocurrencies
Hence, the introduction of subsidy. If not for regulation and subsidies, gas was initially supposed to be selling at about #179 but the Government pays about #46.

So someone tell me something interesting about deregulation

49 Likes 11 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by LadyExcellency: 1:23pm On Sep 08
There is nothing like deregulation without abolishment of Petroleum Products Equalisation Fund.

Remove Equalisation Fund and see petrol sell N150 in Rivers State and N300 in Sokoto State.

Partial deregulation is nonsense.

Northern Politicians can't remove Equalisation Funds to avoid being beheaded.



The Petroleum Equalisation fund Management Board is a scheduled Parastatal of the Ministry of Petroleum Resources ,established by Decree No. 9 of 1975 (as amended by Decree No. 32 of 1989), mainly to administer Uniform Prices of Petroleum products through out the country.

THE IMPLICATION OF EQUALISATION PROCESS

i. The consumer pays the in-built transportation cost of N2.99 per litre irrespective of where the products are purchased, whether in zone 1 or in zone 9.

ii. Transportation cost is related to distance travelled between the points of lifting the products (Depots) and the points of sale (outlets).

iii. The marketer serves as an agent of the PEF (M)B in collecting the allowance built-into the price structure, and transfers same to the board for equalisation or bridging purposes.

173 Likes 8 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Blue3k(m): 1:26pm On Sep 08
No
Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by GamalNasser: 1:27pm On Sep 08
As long as Buharis incompetence keeps the Naira unstable there is no way international price of crude will be the only parameters that affect the cost of petrol in Nigeria ... The recent increase came as a result of failing Naira and not international crude price ...as I predicted last that the Naira will slide by today and now it's has , automatically Buhari has to resume payment of secret subsidy for the next shipment of Petrol coming or he increases the pump price again ..

The only way out of this is either we get competent leader if we want to keep importing petrol or we we fix our refineries ..

52 Likes 4 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Chidexter(m): 1:38pm On Sep 08
Today is not my birthday. Nairalanders please celebrate with me.

57 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by jlinkd78(m): 1:38pm On Sep 08
Noted
Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by amc: 1:55pm On Sep 08
Atikuloot is an olodo who didn't go to school, just like some of his followers who agree with his tweet.

The answer is CURRENCY DEVALUATION.

28 Likes 6 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Racoon(m): 1:57pm On Sep 08
GamalNasser:
As long as Buharis incompetence keeps the naira unstable there is no way international price of crude will be the only parameters that affect the cost of petrol in Nigeria.......
You have aptly surmised it bro.The best thing is for the government/NNPC hands off regulating the price & sole handling of petroleum products & let the market forces determine it for once.

Let them pass the PIB, deregulate the downstream sector & open up the market.The subsidy regime is profiting the cabal that have kept our refineries in their present comatose state despite the huge TAM and other humongous overhead costs.

26 Likes 2 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Lifestone(m): 2:05pm On Sep 08
Officialgarri:
Atiku better sit down patiently with the person that explained the economics behind deregulation instead of rushing to social media.
These people called Politicians are just as dumb as anyone.

Fine, when Buhari first deregulated in 2016, Oil price dropped "due to competition" by 1 naira, but what happened after, it flew right up to #145.
This is because Oil is always in high demand and the higher the demand the higher the price.

Law of Officialgarri states that "Any product with increasing demand and without corporate regulations will have it's market price competing mostly at increasing prices"
Hence, the introduction of subsidy.
Do you read and understand what Atiku said?

62 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Nbotee(m): 2:08pm On Sep 08
ZonBs will always be quick to attack the messenger while ignoring d message.. Dis govt is d definition of classic cluelessness

Lifestone:

Do you read and understand what Atiku said?

Does a zonB have a brain to reason and understand what it read?

88 Likes 3 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by helinues: 2:31pm On Sep 08
Come out and protest, opposition leader Atiku

4 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Nwaide01: 2:34pm On Sep 08
Every body knows that they are watering the ground for Dangote,when the refinery comes into operation the price will be between #200 and #300.

41 Likes 2 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Bevista: 3:18pm On Sep 08
GamalNasser:
As long as Buharis incompetence keeps the Naira unstable there is no way international price of crude will be the only parameters that affect the cost of petrol in Nigeria ... The recent increase came as a result of failing Naira and not international crude price ...as I predicted last that the Naira will slide by today and now it's has , automatically Buhari has to resume payment of secret subsidy for the next shipment of Petrol coming or he increases the pump price again ..

The only way out of this is either we get competent leader if we want to keep importing petrol or we we fix our refineries ..
Naira will always depreciate whenever there's a fall in oil prices, except we can have alternative means of earning USD outside oil.

As per the point Atiku raised, government may argue that the reason why current pump prices is not lower than what was obtainable in 2019 is because the 2019 price was subsidized and the current one is not. Dunno if that's a valid argument or not.

14 Likes 3 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by abouzaid: 3:22pm On Sep 08
Oil Marketers Deny NNPC On N5.35bn Petrol Subsidy Payment Okechukwu Nnodim, Abuja


Oil marketers on Monday expressed surprise over the resurfacing of petrol subsidy in June 2020 as disclosed by the Nigerian National Petroleum Corporation in its latest operations report. According to marketers of petrol, the government had since March this year declared that the downstream oil sector had been deregulated and as such there was no need for petrol subsidy. The Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria told our correspondent in Abuja that they had not received any subsidy payments from government. The PUNCH reported on Monday that NNPC made an under-recovery of N5.35bn in June. Under-recovery is the losses incurred by the oil firm due to the difference between the subsidised price at which the corporation sells petrol and the price which it should have received to meet its production cost. The Group General Manager, Group Public Affairs, Division, NNPC, Kennie Obateru, had explained that the return of under-recovery in June was due to the payment for stock held by marketers at the onset of the removal of subsidy by the Federal Government. “Since the subsidy removal started with reduction in pump price, marketers have been paid the differential of the PPPRA verified stock they held and it is spread over a period of six months,” he said. But the National Public Relations Officer, IPMAN, Ukadike Chinedu, said it was surprising to hear of subsidy payments when the downstream sector had been deregulated. He said, “They didn’t pay us any subsidy money. You are also aware that the market has been deregulated. We are now dispensing products based on international crude oil market price. “Furthermore, you are aware of the price regime and this regime is regulated by the price of crude oil in the international market. So, where is the subsidy coming from?” Chinedu added, “You are also aware that in the months of February, March, April, May and June, the PPPRA released guiding prices for petrol based on price deregulation. So as at what point did the subsidy come in? On whether marketers got any support when the pump price of petrol crashed from over N140 per litre to about N125 per litre some months ago, the IPMAN official said nothing of such happened. Chinedu said, “There is no differential that was paid to us because when they reduced the cost of the product from N145 to N123, they did not pay any differential to anybody. https://punchng.com/oil-marketers- deny-nnpc-on-n5-35bn-petrol- subsidy-payment/

2 Likes

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by EastGold(m): 3:52pm On Sep 08
Incoming Alhaji, I agree with you, but as the opposition leader, come out and lead a protest.
We will join you

8 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by JesusJesus: 4:35pm On Sep 08
Athiefku is always trying to make a point but believe me, there's no other description of Atiku but Thief, ole, barau

16 Likes 5 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by phransix2: 4:35pm On Sep 08
Ok
Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by RichDad1(m): 4:35pm On Sep 08
Hmm
Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Ogaemmii: 4:35pm On Sep 08
Every Economist knew the fuel prices were lower than that set in the market and was what adversely affecting the downstream sector. That's why the populace wanted a subsidy to remain.

1 Like

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by loneprof: 4:35pm On Sep 08
They all use fuel price and insecurity as political points till they become president... When they assume office, the narrative changes.

Abeg let Buhari do his own and leave and let's move forward. If it's revolution or election, we'll know by then.

13 Likes 2 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Saifulah: 4:36pm On Sep 08
ok let me try
Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by SexytorresE(f): 4:36pm On Sep 08
This is how they will start , and when they get there they make life miserable.

12 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by unitysheart(m): 4:36pm On Sep 08
Olodo

5 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by akure1stson: 4:36pm On Sep 08
g
Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Mentorkaryhm(m): 4:36pm On Sep 08
Trust no Nigeria politician. Their economics theories are different during the campaign and before assuming the post. But it's another theories and principles they implement when they are on the seat.
That was how APC said #40 per litre and #1to $1 is possible.

7 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by unitysheart(m): 4:36pm On Sep 08
LadyExcellency:
There is nothing like deregulation without abolishment of Petroleum Products Equalisation Fund.

Remove Equalisation Fund and see petrol sell N150 in Rivers State and N300 in Sokoto State.

Partial deregulation is nonsense.

Northern Politicians can't remove Equalisation Funds to avoid being beheaded.

You sabi. They should removed PEF if they truly wanna deregulate.

5 Likes

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by PureGoldh(m): 4:36pm On Sep 08
9ja matter don tire person

Asif He,Atiku will reduce the PMS price if he is the one in power...smh in dismay

2 Likes 1 Share

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by MrTAnonymous(m): 4:36pm On Sep 08
If you ask me, na who I go ask?

Toy talks

1 Like 2 Shares

Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by Carthman(m): 4:36pm On Sep 08
grin
Re: Atiku: If We Truly Deregulated, Shouldn’t Fuel Price Drop? by jericco1(m): 4:37pm On Sep 08
Talk is cheap because even a two year old can ask such questions..
He is trying to incite hatred that already exists..
He should focus more on the current crises bedeviling his party angry

4 Likes 1 Share

(1) (2) (3) (4) (5) (6) (7) (Reply)

Jimi Agbaje Picks Funsho William’s Running Mate As Deputy / Ministerial List: September Deadline Stands – Presidency (Today.ng) / Buhari Re-nominates Aliyu Abubakar NCC Job, Rejected In 2016 By Senate

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2020 Oluwaseun Osewa. All rights reserved. See How To Advertise. 107
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.