dre11:


https://www.newtelegraphng.com/fuel-pump-price-may-drop-to-n100-presidential-aide/

dre11:


https://www.newtelegraphng.com/fuel-pump-price-may-drop-to-n100-presidential-aide/

Godarz:
So in other words, instead of deregulating and allowing more legitimate investors who would build standard refineries to provide enough PMS, we want to legalize backyard refineries, which are not up to standard and provide a lot of pollution simply because we want cheap fuel.

Even then, we still must deregulate. It is the only way we can eventually get low oil prices.

OmoEpe:



Isn't licensing those refinery not part pf deregulation? it seems you don't even have a sound grasp of what deregulation is

thebosstrevor1:


Do you even understand the meaning of deregulation.

How can deregulation work if Government can not encourage illegal refineries in the creeks to get legalise.

Dont you know theirs is more cheaper than the legalise ones

Godarz:
So in other words, instead of deregulating and allowing more legitimate investors who would build standard refineries to provide enough PMS, we want to legalize backyard refineries, which are not up to standard and provide a lot of pollution simply because we want cheap fuel.

Even then, we still must deregulate. It is the only way we can eventually get low oil prices.

Imported fuel reportedly of lower quality compared to illegally-refined fuel in the Niger-Delta creeks

A recent study by the Stakeholder Democracy Network (SDN) revealed that black market fuel refined in the creeks of the Niger Delta tends to have higher quality than the legally imported petrol and diesel imported into Nigeria from Europe.

Even though Nigeria has the capacity to pump over 2 million barrels a day of high grade “Bonny Light” crude, Nigeria’s refining capacity has been heavily reduced to nothing due to the dysfunctional state of four of Nigeria’s refineries which are managed by the Nigeria National Petroleum Corporation, NNPC.
https://nairametrics.com/2020/07/01/imported-fuel-reportedly-of-lower-quality-compared-to-illegally-refined-fuel-in-the-niger-delta-creeks/

Godarz:
]

Which is what we have been doing for years...and which is why we have broken down refineries and people not too willing to invest in more refineries simply because partial deregulation means profits aren't enough to pay for new refineries, and rebuild and repair existing ones.

I think we need total deregulation. It is the best way, and yes in return for paying high prices for petrol, we get more refinereis, more of the licence holders would be able to source for money to build refienreis, and NNPC would finally have the profit we need to build new refinereis.

Partial deregulaiton has been tried over and over again since the 1990'S...AND it is not working.



Yeah, I know. But that's the price of business.

The marketers will raise prices, yes, but they would also have more than enough profit which can be reinvested in new refienreis...which means increased production and eventually falling prices for PMS.

I'm sure you won't like it if you were running a business selling clothes, and government came in and set your prices at a level where you could not make enough of a profit to sustain your business. Which is what we have been ding for the oil business...and which is why over the years, we have had sharp practices like fuel scarcity and smuggling...

We did it for the GSM sector. In the beginning, GSM companies were allowed to charge what they liked. They made big profits...whjich were invested in the IT backbone that today has provided millions of jobs here in this country

Now imagine if Obasanjo had started fixing the prices that MTN, Econet (now Airtel) and Glo were allowed to charge. I doubt we would have hand the internet and IT sector we have now.

PLus the subsidy is chopping our revenue, and forcing us to take more loans and more loans to meet up with our budget.

kutashi:
Stop comparing the incomparables!
'GSM sector' as you called it had and still has no impact on price of other things like food stuff, transport fare etc. An increase in price data on call rate will not have exponential impact like an increase of just N2 on price of Petrol! If not now, our economy was 99% oil dependent! I hope you what that means?

Then, there is this hypocrisy about Nigerian populace, everybody was deregulation and the sector was deregulated but they want start enjoying effect of deregulation with zero tolerance for it's pain! They want petrol price fixed!

meobizy:
Unbelievable. The current administration has two years to meet this fallacious promise. Once ousted from power, which I hope not, they'll sit back and watch the masses suffer.

dre11:


https://www.newtelegraphng.com/fuel-pump-price-may-drop-to-n100-presidential-aide/

dre11:


https://www.newtelegraphng.com/fuel-pump-price-may-drop-to-n100-presidential-aide/