backbencher:
The reason why NNPC has such a high subsidy bill is simple

It anticipates that the cost of producing one liter of fuel would rise higher than the 163 naira cost price set by goverment this year.

Thus the cost of subsidy would rise.

The rise is aggravated by the fact that the value of the naira is also falling due to the fact that we spend a lot of Forex on subsidies and importing fuel

There is a reason why subsidy must go. We cannot waste trillions of money keeping fuel cheap

Why do you keep trying to defend baseless policies with incoherent and duplicious takes?


Are you an APC supporter?

I am asking because you tagged me a PDP supporter for questioning you yesterday.

Judolisco:
I can't believe people sat down and sited a refinery in kaduna

As in..this country eh

backbencher:
The reason why NNPC has such a high subsidy bill is simple

It anticipates that the cost of producing one liter of fuel would rise higher than the 163 naira cost price set by goverment this year.

Thus the cost of subsidy would rise.

The rise is aggravated by the fact that the value of the naira is also falling due to the fact that we spend a lot of Forex on subsidies and importing fuel

There is a reason why subsidy must go. We cannot waste trillions of money keeping fuel cheap

How many times will subsidy go? The subsidy bill is this high because daily fuels consumption mysteriously jumped 300% up under BBuhari and nobody is saying anything ...this is the point we need to find out where this sudden rise in consumption came from ....Me I know know it's outright corruption being used to steal the country silly

Recycled reason given for subsidy removal right from IBB regime. You fail to mention government failure to build more refineries and end the endemic corruption surrounding fuel importation and bogus subsidy claims.

You also fail to mention government ineptitude and policy summersaults. This government cane to power campaigning that there's nothing like subsidy.

thundafire:
Why can't we just put into good use PORTHARCOURT refinery and the one in Delta state and save us this stress. We just have greedy leaders, middlemen and citizens

The refineries have a half chance only if they are sold and privatised.

APC and Buhari government are a professional thief...

Looting mode activated by the useless govt of self serving thieves and sadistic scums!

APC and Buhari government are a professional thief..

Still on petrol subsidy in Nigeria, my maths is failing me... The FG budgeted N450Billion subsidy for Jan22 to Jun22 (6month). But NNPC is now requesting N3Trillion for subsidy for Jan22 to Dec22. Something is not adding up. Who can solve this equation?

anybody clamouring for subsidy removal is clueless

SarkinYarki:


How many times will subsidy go? The subsidy bill is this high because daily fuels consumption mysteriously jumped 300% up under BBuhari and nobody is saying anything ...this is the point we need to find out where this sudden rise in consumption came from ....Me I know know it's outright corruption being used to steal the country silly

Subsidy won't go until government allows the marketers to set the price and stops paying it.

luizpippo:


Why do you keep trying to defend baseless policies with incoherent and duplicious takes?


Are you an APC supporter?

I am asking because you tagged me a PDP supporter for questioning you yesterday.

You do not understand how subsides work, APC man, like your PDP people.

Good morning.

LegitAirdrop:
What is the effect of this subsidy postponement?

Subsidy costs are going to rise...meaning we are going to pay more and more to keep fuel prices cheap...meaning we end up taking loans to meet up needs.

Meanwhile, investors won't come and add to the six private refinereis we have on construction.

nelszx:

When the standard of living is relatively okay (keyword: relatively).

There are basic amenities primarily power and good roads. If people dont spend to power their households anylonger, then removing the subsidies will be called for.

But now, Nigerians are powering so much with little pay don't you think its unwise to remove subsidy now. If it's only car I'm powering, it can be removed.

On the other hand, the more we spend on subsidies, the more we would need to take loans to meet our needs.

Subsidy, and regular government spending depend on the price of the crude oil we sell. When we spend more on subsidy, we have less money to spend on other things...and thus we have to take more loans.

Which is bad news for poor Nigerians. Removing subsidies would at least mean more investment, more jobs, more profit, and more money...which can benefit poor Nigerians.

PEREZPERECTUS:


if fuel subsidy must go, then refineries must be functional.
After all, that is what promised before coming on board

I don't think I said that refinereis don't need to be functional.

Plus, subsidy needs to go for refinereis to be functional...especially since it would force NNPC to be more reliant on the profits it makes...which would end sabotage of the refinereis,since no profit, no money for salaries.

There is a cold reason why the private sector does better than government ......private sector cannot afford sabotage. Government workers can sabotage things,and they will still get paid at the end

Nigerians should allow them remove this subsidy once and for all na, this money will go to the rich men in the country

Na NNPC & Minister Of Petroleum
be our problem for this country❗️❗️


Person wey present this type of
budget should be arrested and shot
on the spot❗️❗️☹️☹️❌❌

The argument this government normally makes is that those who benefit from this subsidy are rich and corrupt Nigerians. This is a very stupid argument.

Something that I usually buy #167 and you now want to sell it at over #300 and you are saying that I don't benefit from it.

Even if this is the only thing I benefit from Buhari, he should keep paying it until a more knowledgeable leader takes over and decides the way forward.

After all, crude oil is selling nearly #100 now. They have a lot of money and are still going to China to borrow up and down.

backbencher:
The reason why NNPC has such a high subsidy bill is simple

It anticipates that the cost of producing one liter of fuel would rise higher than the 163 naira cost price set by goverment this year.

Thus the cost of subsidy would rise.

The rise is aggravated by the fact that the value of the naira is also falling due to the fact that we spend a lot of Forex on subsidies and importing fuel

There is a reason why subsidy must go. We cannot waste trillions of money keeping fuel cheap

Modifed

A s oil prices go up, the cost of producing fuel goes up...meaning that we end up spending more on subsidizing fuel.

At the time we raised fuel to N165, it cost N180 to land one liter of fuel. Now it is N260. And rising. The difference between that N162 government price and the 'landing' price is what government pays in subsidy. And as you can see, costs are rising....because the production cost is rising.

Also, smuggling, stealing and so on are there.

Removing subsides while bringing about high prices, would end the corruption and smuggling and encourage domestic refining of fuel, ending importation of fuel

Please how does subsidy removal alleviate the plight of the poor masses in this present economic hardship?

backbencher:
The reason why NNPC has such a high subsidy bill is simple

It anticipates that the cost of producing one liter of fuel would rise higher than the 163 naira cost price set by goverment this year.

Thus the cost of subsidy would rise.

The rise is aggravated by the fact that the value of the naira is also falling due to the fact that we spend a lot of Forex on subsidies and importing fuel

There is a reason why subsidy must go. We cannot waste trillions of money keeping fuel cheap

Modifed

A s oil prices go up, the cost of producing fuel goes up...meaning that we end up spending more on subsidizing fuel.

At the time we raised fuel to N165, it cost N180 to land one liter of fuel. Now it is N260. And rising. The difference between that N162 government price and the 'landing' price is what government pays in subsidy. And as you can see, costs are rising....because the production cost is rising.

Also, smuggling, stealing and so on are there.

Removing subsides while bringing about high prices, would end the corruption and smuggling and encourage domestic refining of fuel, ending importation of fuel

What are you even on about?

They proposed 443 billion for subsidy from January till June and then turn around to propose 3trillion from the same January till December.

How do you explain 443 billion for 6 months grew geometrically to 3trillion in 12 months.

That is a not 2, 3 or 4 times increase

luizpippo:


What are you even on about?

They proposed 443 billion for subsidy from January till June and then turn around to propose 3trillion from the same January till December.

How do you explain 443 billion for 6 months grew geometrically to 3trillion in 12 months.

That is a not 2, 3 or 4 times increase

That's what I am saying...subsidy costs rise because the difference between the cost of production and transporting the fuel is always rising due to production costs rising...which is why you have the mess seen above.

That, plus mass smuggling happening.

Which is why subsidy has to go, so that NNPC would not be submitting claims like the above, but live off its profits.

Dvin:
Please how does subsidy removal alleviate the plight of the poor masses in this present economic hardship?

BAD NEWS: High fuel prices...meaning high transport costs, and high food prices, and high prices for most things...short term

GOOD NEWS:

1.More investment in domestic refining=more jobs directly and indrectly (poor benefit)

2.More government savings , meaning more money for education, health etc (poor benefit, but they also have to do the hard work of holding government to account )

3.More dollars to buffer the naira...naira value improves...prices fall...(poor benefit).

4.More investment means more money in pockets...from the rich...to the....poor.

5.High production from domestic refinereis plus competiton, plus improved value of naira, plus export revenue from refined products....means more revenue (poor benefit massively)

6.Economy begins to improve long term...poor benefit.

bcomputer101:
NNPC?
Most useless organization after Nigeria police force

and after police na NEPA

I am still trying to wrap my head around how an average Nigerian benefits from buying cheap fuel.

See the bastards. Dem don come again. How much to build 5 refineries? JUDGEMENT IS COMING.

Is Buhari still the minister of Petroleum. I just wish another party will take over 2023 so that they can probe this government. Pls can some one remind of me of what happened in 2012, our formal SSG, ikoyi building money that was discovered. This Buhari just came to steal, kill and distory this country. Nigeria is worst now than before

backbencher:
The reason why NNPC has such a high subsidy bill is simple

It anticipates that the cost of producing one liter of fuel would rise higher than the 163 naira cost price set by goverment this year.

Thus the cost of subsidy would rise.

The rise is aggravated by the fact that the value of the naira is also falling due to the fact that we spend a lot of Forex on subsidies and importing fuel

There is a reason why subsidy must go. We cannot waste trillions of money keeping fuel cheap

Modifed

A s oil prices go up, the cost of producing fuel goes up...meaning that we end up spending more on subsidizing fuel.

At the time we raised fuel to N165, it cost N180 to land one liter of fuel. Now it is N260. And rising. The difference between that N162 government price and the 'landing' price is what government pays in subsidy. And as you can see, costs are rising....because the production cost is rising.

Also, smuggling, stealing and so on are there.

Removing subsides while bringing about high prices, would end the corruption and smuggling and encourage domestic refining of fuel, ending importation of fuel


Modifed

Landing cost as at today is N282 naira

Last year June it was N232 naira.

Above per liter.

In 2018 it was N180 per liter by September of that year.

In 2012, it was N99 per liter, in January

See what I mean.

Politics is too important to the elites that they cannot agree on a good time to remove it. It is either elections are approaching of an incumbent is trying to secure reelection victory. This current government joined in opposing subsidy removal in the past and that makes it more difficult for them to sell your argument to the people even though it is quite logical.
If we must remove subsidy, we should be looking to have local refineries and completion in place but that is clearly lacking. I suggest they follow alternative energy options deligently to provide some options and competition to petrol. If the govt was honest about subsidy fraud, it could have bursted it by now. Another option is to maintain subsidy and monitor who is getting what from Dangote refinery to reduce subsidy fraud among marketers.

RepoMan007:

Politics is too important to the elites that they cannot agree on a good time to remove it. It is either elections are approaching of an incumbent is trying to secure reelection victory.

Yeah, and the Nigerian people have always been opposed to subsidy removal ever since one Baroness Chalker proposed it in 1993. Even I opposed it till I woke up in 2012, and received sense.

This current government joined in opposing subsidy removal in the past and that makes it more difficult for them to sell your argument to the people even though it is quite logical.

And now they have reversed subsidy removal, which makes them more illogical and confirms that they don't know how to run an economy.

If we must remove subsidy, we should be looking to have local refineries and completion in place but that is clearly lacking.

Well, Obasanjo did not subsidse GSM...and as a result we were paying N26000 as welcome package for SIM in those days, if not higher....and we didn't have a decent GSM network till around 2007 . But the GSM companies were able to make enough money from that decision not to pay them subsides to enable them build a GSM network without government interference and government money..which works well (for the most part).

Removing subsidy would attract more investors to build more refineries, and at the end we would have the competition which would be part of the reason why prices would fall. Dangote can build a refinery because he has the money that would let him appeal to banks to loan him more money (60-70% of his starting funding came from local and international banks)...and the banks know they would get their money back

Plus we have bad refinereis because subsidy meant they did not have the profit to run well, to be well maintained, and to get upgrades...and so on. Government decided not to do all that to save money...and the refinereis all collapsed.

I suggest they follow alternative energy options diligently to provide some options and competition to petrol.

That goes without saying.

If the govt was honest about subsidy fraud, it could have bursted it by now. Another option is to maintain subsidy and monitor who is getting what from Dangote refinery to reduce subsidy fraud among marketers.

Subsidy fraud would always be there so long as government controls the pricing of fuel. Price controls is a bad way of doing economics. It is a big reason why communist bloc countries collapsed in the 1980's...because the big problem with price control is that it does not let people make a profit. (That's why we have issues in our power sector...the same reason, Ditto why we lost all our refineries..the price control inherent in subsidizing fuel does not allow enough of a profit to be made in keeping the refineries running well.).

So, people would engage in sharp practices to satiate the profit motive inherent in every man, whether it is lying about petrol lifted, to lying about petrol transported (part of subsidy goes to transporters to keep fuel the same price across the country, otherwise prices of fuel would differ from place to place, as seen in India), to smuggling fuel across the border which can lead to one making a profit of N150 extra or more in addition to the N163 cost price.


Subsidy fraud exists in all countries with massive subsidies. Venezuela, whose government is also stern, loses at least 18 billion dollars yearly from smuggling of fuel across the borders....because fuel in Venezuela is N40 while, fuel in one of its neighbours Colombia, is N600. per liter.

Human beings are greedy people. (Was it not Nyerere who once said that the average tailor wants to be a millionaire). Governments have to accommodate the greed in a way that is also beneficial to them. Subsidies harm that arrangement, and cause problems long term

backbencher:


BAD NEWS: High fuel prices...meaning high transport costs, and high food prices, and high prices for most things...short term

GOOD NEWS:

1.More investment in domestic refining=more jobs directly and indrectly (poor benefit)

2.More government savings , meaning more money for education, health etc (poor benefit, but they also have to do the hard work of holding government to account )

3.More dollars to buffer the naira...naira value improves...prices fall...(poor benefit).

4.More investment means more money in pockets...from the rich...to the....poor.

5.High production from domestic refinereis plus competiton, plus improved value of naira, plus export revenue from refined products....means more revenue (poor benefit massively)

6.Economy begins to improve long term...poor benefit.

Ok thanks sir