People are doing panic buying around Ajah, passing VGC this morning is like camel going through a needle and it is every where. Is there fuel scarcity?

Not in the fct for now.

All these abuses will end with subsidy removal

Should have done it since 2012 if not earlier

Vardanes2:
Not in the fct for now.

All these abuses will end with subsidy removal

Should have done it since 2012 if not earlier

You are going backward oga.

iwaeda:


You are going backward oga.

Subsides means over the years fuel has been sold as a lower price than the cost of production

Thus our refineries haven't been run profitably meaning we have bad refineries and have to import fuel, which we waste money again subsidizing

Vardanes2:


Subsides means over the years fuel has been sold as a lower price than the cost of production

Thus our refineries haven't been run profitably meaning we have bad refineries and have to import fuel, which we waste money again subsidizing

What is subsidy? It is a scam according to GMB!

iwaeda:


What is subsidy? It is a scam according to GMB!

And you beleived him?

Once there is price controls by the government over the cost of fuel...once NNPC via DPR is setrting the price of fuel...there is a subsidy. No matter what Buhari or anyone else says.

Landing cost of petrol is now around the 180 mark. Meaning the price of the product is definitely going to go up. They will give u the usual excuse of increasing cost of crude in the international market. Bunch of hopeless and lying hypocrites

Nbotee:
Landing cost of petrol is now around the 180 mark. Meaning the price of the product is definitely going to go up. They will give u the usual excuse of increasing cost of crude in the international market. Bunch of hopeless and lying hypocrites

Are they still paying subsidies?

iwaeda:


Are they still paying subsidies?

The govt claims to have removed subsidy time and time again but with dis govt U can neva fully believe dem. The NNPC is still the only one importing petroleum products dats exactly why the govt fixes the price every now and den

Nbotee:


The govt claims to have removed subsidy time and time again but with dis govt U can neva fully believe dem. The NNPC is still the only one importing petroleum products dats exactly why the govt fixes the price every now and den

There has always been a subsidy

For example, in 2015....government raised prices to N145 from N87. At the time, the landing cost of fuel was N132 meaning that government was paying N132-87 naira = 45 naira as subsidy cost per liter of fuel sold. Raising the price meant that government paid nothing.

In 2017, the landing price rose above N145....so government brought back the subsidy...and kept it till 2019 when prices rose too high to keep the price at N145..at which point government raied the price to N162 (above the landing cost of N155 )

Now landing cost is N180...MEANING government is still paying a subsidy of N18 or thereabouts for the thing

The problem is

1.Now NNPC is the sole importer of fuel...meaning they use their money to pay for subsidising it...with some help from government

2.This prevents NNPC from having the cash needed to pay for acctuall refinery repair.

Vardanes2:


There has always been a subsidy

For example, in 2015....government raised prices to N145 from N87. At the time, the landing cost of fuel was N132 meaning that government was paying N132-87 naira = 45 naira as subsidy cost per liter of fuel sold. Raising the price meant that government paid nothing.

In 2017, the landing price rose above N145....so government brought back the subsidy...and kept it till 2019 when prices rose too high to keep the price at N145..at which point government raied the price to N162 (above the landing cost of N155 )

Now landing cost is N180...MEANING government is still paying a subsidy of N18 or thereabouts for the thing

The problem is

1.Now NNPC is the sole importer of fuel...meaning they use their money to pay for subsidising it...with some help from government

2.This prevents NNPC from having the cash needed to pay for acctuall refinery repair.

Nobody is denying the existence of subsidy all dis years. The previous administration were well paying for subsidies which dis govt claimed was fraudulent. Your second point on NNPC not having cash for refineries repair becos dey were paying subsidy is laughable. The NNPC spends billions in TAM of comatose refineries.

Nbotee:



Nobody is denying the existence of subsidy all dis years. The previous administration were well paying for subsidies which dis govt claimed was fraudulent. Your second point on NNPC not having cash for refineries repair becos dey were paying subsidy is laughable. The NNPC spends billions in TAM of comatose refineries.

1.The NNPC needs more money than it spends on TAM to actually fix the refienreis.

2. Subsidy means that we sell fuel below the cost of making it, and then we pay something called subsidy cost to cover the loss

Let's assume it costs N200 to refine fuel in Nigeria, and we sell it at N250 ..profit covers transport costs, etc...

Government comes in, says we are poor, and makes that fuel to be sold at N120 per liter.....paying a subsidy of N80 that covers the 'cost'

The problem is, due to fluctuations in the price of oil that we sell...the subsidy cost isn't always paid...plus lack of a profit means that we don't have the cash to actually fix, maintain and upgrade refienreis...properly..meaning they keep losing money

3.Refering to no2...that's why we don't have functional refienries. We want cheap fuel.

As stated by the chair of the marketers association(in an article published in Today's vaguard...check my profile topics for the article)

“I understand the challenges that price regulation has created over the years.The problem is because we have kept the prices artificially low for such a long time and we have not achieved what is called ‘price recovery’ in order to maintain a lot of the infrastructure in the downstream. That is what the challenge is.”

Vardanes2:


1.The NNPC needs more money than it spends on TAM to actually fix the refienreis.

2. Subsidy means that we sell fuel below the cost of making it, and then we pay something called subsidy cost to cover the loss

Let's assume it costs N200 to refine fuel in Nigeria, and we sell it at N250 ..profit covers transport costs, etc...

Government comes in, says we are poor, and makes that fuel to be sold at N120 per liter.....paying a subsidy of N80 that covers the 'cost'

The problem is, due to fluctuations in the price of oil that we sell...the subsidy cost isn't always paid...plus lack of a profit means that we don't have the cash to actually fix, maintain and upgrade refienreis...properly..meaning they keep losing money

3.Refering to no2...that's why we don't have functional refienries. We want cheap fuel.

As stated by the chair of the marketers association(in an article published in Today's vaguard...check my profile topics for the article)

Why do love suffering, what else is done for the citizens? Atleast they promised one refinery per year, this is almost six years no single refinery!

iwaeda:


Why do love suffering, what else is done for the citizens? Atleast they promised one refinery per year, this is almost six years no single refinery!

It is easy to build refienry

But the demand for subsidizing fuel means prices stay artifically low for the refienreis to run profitably.

I mean, look at Niger. They have a refienry, and it works because they sell fuel at N350 and thus make enough profit to keep the refienry running well..which is why they can export fuel to us and to at least two other African countries.

Here in Nigeria...if they build refinery, people will insist on buying fuel at a cost below the production cost...and in a few years the refienry would break down...

(That is why when Dangote comes on stream, subsidy better go...or Dangote won't make the profit he needs to keep the refinery functional)

Vardanes2:


It is easy to build refienry

But the demand for subsidizing fuel means prices stay artifically low for the refienreis to run profitably.

I mean, look at Niger. They have a refienry, and it works because they sell fuel at N350 and thus make enough profit to keep the refienry running well..which is why they can export fuel to us and to at least two other African countries.

Here in Nigeria...if they build refinery, people will insist on buying fuel at a cost below the production cost...and in a few years the refienry would break down...

(That is why when Dangote comes on stream, subsidy better go...or Dangote won't make the profit he needs to keep the refinery functional)

Do they have oil in Niger like we do here? What is not that old man Tam-david West that promised petrol will be N40, but he only lived to see it increased to N159.50 before he joined his ancestors. Buhari na scam.

iwaeda:


Do they have oil in Niger like we do here?

They do

What is not that old man Tam-david West that promised petrol will be N40, but he only lived to see it increased to N159.50 before he joined his ancestors.

And you beleived him? Okay.

Buhari na scam.

He is.

Vardanes2:


They do



And you beleived him? Okay.



He is.

We are the production fields. There oils is not as much as we do in Nigeria.

iwaeda:

We are the production fields. There oils is not as much as we do in Nigeria.

And like I am saying..if you want actual refienries of fuel to work in Nigeria...you have to allow the people refining the fuel to sell it at a profit. Not at subsided prices which won't let them make a profit to keep their refienreis running well.

That's what Niger is doing.

Vardanes2:
Not in the fct for now.

All these abuses will end with subsidy removal

Should have done it since 2012 if not earlier

How many times will Buhari govt remove subsidy? Abeg don't provoke me

Vardanes2:


And like I am saying..if you want actual refienries of fuel to work in Nigeria...you have to allow the people refining the fuel to sell it at a profit. Not at subsided prices which won't let them make a profit to keep their refienreis running well.

That's what Niger is doing.

So who is refining in Nigeria currently?

GamalNasser:


How many times will Buhari govt remove subsidy? Abeg don't provoke me

You don't understand how subsidy works...

Come back when you do, and also, don't always believe everyhting the government says.

Thanks.

GamalNasser:


So who is refining in Nigeria currently?

The refinereis don't work because price controls make them unprofitable.

Vardanes2:


The refinereis don't work because price controls make them unprofitable.

The govt refineries ? I hope you know all 4 refineries in Nigeria are owned by govt? I hope you know the govt is still buying from foreign refineries

Vardanes2:


You don't understand how subsidy works...

Come back when you do, and also, don't always believe everyhting the government says.

Thanks.

You are clearly the one that doesn't know the difference between Subsidy and deregulation and you are here yapping nonsense

GamalNasser:


You are clearly the one that doesn't know the difference between Subsidy and deregulation and you are hear yapping nonsense

Good afternoon and do have a good day sir

GamalNasser:


The govt refineries ? I hope you know all 4 refineries in Nigeria are owned by govt? I hope you know the govt is still buying from foreign refineries

And because the same government sells fuel at a price below the cost of production of that fuel and uses subsidy to cover the loss poorly and has been doing so for years there hasn't been enough money to maintain and fix the refineries properly.


We actually need more than the amounts they have been spending on refinery maintenance

Same issues with our power sector.


If you don't get it, sorry.

Good afternoon again to you