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Nairaland Forum / Nairaland / General / Politics / Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day (9658 Views)
Forex Crisis Pushes Petrol Subsidy To N907.5b Monthly / Power Producers Sell ₦294.16 Billion Electricity In Five Months / High Oil Price Pushes Subsidy On Petrol To N65.6 Per Litre (2) (3) (4)
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Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by chloride6: 1:51pm On Jan 30, 2022 |
This is a collosal waste.. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 1:55pm On Jan 30, 2022 |
sulaak:There is no oil producing African country where oil pollutants does not exist Even shell caused environmental pollution in the Niger Delta communities |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by anyilalaz: 2:43pm On Jan 30, 2022 |
Petroleum products that is a blessing to some other countries and their citizens. Here in Nigeria, na curse for us. International price increases, we pay high for petrol, if it falls we still pay high for petrol |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 2:44pm On Jan 30, 2022 |
Revolution2022: 1.It costs money to get a standard refinery. The people doing illegal refinery don't have the cash to do that. 2.Even if government helped them....the guys are at the end going to refine fuel above 200 naira and meet a Nigerian public that wants fuel below N163 or even below N100. They won't hear 'its costly to refine fuel to standard quality' 3.Stopping subsidy is one way to make refining at home happen...but Nigerians want to eat their cake and have it. They want to buy home refined fuel, but don't want to pay the cost of making that fuel. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 2:48pm On Jan 30, 2022 |
anyilalaz: Back in 2020, at the height of covid related crude oil prices fall...fuel cost N124 per liter. (oil was at $25 per barrel then). Yes, oil went up from N87 to N145 when oil prices fell in 2014-16...but that was because of the massive subsidy claims owed as well as the fall in the value of naira due to falling oil prices.Government raised prices, and stopped paying subsidy to allow the marketers pay themselves some of the debt, and paid the balance by 2018 1 Like |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 2:52pm On Jan 30, 2022 |
JetGreen: The simple solution would be to remove subsidy That means government saves money, plus the petroleum industry makes a profit which includes the money government would have given them in subsides. But because most Nigerians want low fuel prices....the subsidy stays...and we lose money Which leads me to the next issue...most of the subsidy money comes from crude oil money. The higher the cost of making a liter in fuel due to high oil prices, the more of the revenue from crude oil we would spend on subsidy to keep prices at N163 per liter. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 2:59pm On Jan 30, 2022 |
princewarri1985: Subsidy is not the only thing are benefiting from 1.School fees at all levels are subsidised...which is why, for example, you don't pay N500000 or higher at a government owned poly or university as fees. 2.Healthcare is also subsidised by government, which is why you don't pay something like $15000 -80000 or more (imagine that in naira) for a caesarean, or 6 million naira fixing fracture of your thighbone .... 3.Power is also subsidised (yes it is!) You pay between N41-71 per kwh of power...estimated or metered. The power companies think you should be paying between N83 and above per kwh. Government pays subsidies to the power sector now and then to keep prices down (but it isn't enough to cover their losses, which is why they don't earn enough...and lose money) 4.Water supply is also subsidsied...which is why your bills are very low. 5. You don't pay tolls or parking meter costs...you can park anywhere for free in this country., or drive highways without stopping at a tolll gate to pay for anything. Meanwhile, countries you want to japa to...they don't subsidse education(in countries like the UK and US , you have to take a student loan to fund university education), health( there is health insurance, but you may pay high premiums, or taxes to fund it) or even fuel (the good public transport takes some of the load off, but even then. Fuel is not subsidsied there). And if you park your car anywhere in the developed countries...you pay a toll. Dirive on the highway...you pay a toll. Income tax is even higher than you think. 1 Like |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by henryutd(m): 3:15pm On Jan 30, 2022 |
Crude Price and Subsidy are two edged sword. 1 Like |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Deepthoughts: 3:15pm On Jan 30, 2022 |
ogododo:please can someone help ask buhari to define n explain fuel subsidy? |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Sonn(m): 3:20pm On Jan 30, 2022 |
Destnba:My dear brother just imagine o! this government has been crying of oil prize drop, this is the same excuse they used in crucifying Gej of selling oil for $200 and could not do anything with the profits, yet Gej was paying subsidy and fuel was #89 abi #86, today' we are paying double and they still complain, fuel prize drop' they complain, fuel prize rise' they still complain, Haba? What sort of nonsense is this? The only country in the world wey no get president!!!! |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 3:45pm On Jan 30, 2022 |
sulaak: Abeg let them serve Africa first we would praise them, biko we don't mother Russia wahala. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by venabili: 3:55pm On Jan 30, 2022 |
backbencher: Nice argument. I would have agreed with your point three if i didnt go through the OP's post. Subsidy has been removed from both kerosene and diesel. Has this resulted in increase in local refining capacity? Or a better economy? |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 4:15pm On Jan 30, 2022 |
venabili: It's easy to make profit from kerosene and diesel...but then have it eaten by losses from subsidizing petrol. Unless your refinery is producing everything but petrol |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 4:44pm On Jan 30, 2022 |
The way this people lie is just too funny. How many litres do we even consume per day? |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by blowjohn(m): 5:41pm On Jan 30, 2022 |
Bought diesel 2 days ago at 360naira . Yesterday it had leaped to 375 naira.. Take note that around late November it was around 320 or so |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by ambale(m): 5:48pm On Jan 30, 2022 |
So now na propaganda the government wants to be using in the case of subsidy, before u know now, they will say 80% of 2022 budget will go for fuel Subsidy Very lazy asses, just want to be spoon-fed and praised for doing absolutely nothing What is wrong if the country has it's own refinery Abi dar one too hard. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by osuofia2(m): 5:56pm On Jan 30, 2022 |
Which kind problem be this? So we can't rejoice for increased in oil price
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Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by RepoMan007: 6:22pm On Jan 30, 2022 |
backbencher:Stop peddling this falsehood about local refining being unprofitable because of subsidy. If it is true, why is Dangote building world's biggest refinery? So you have more sense than Dangote and his team or what? Local refining remains profitable because the refiner sells at a profit to the govt who then sell to consumers within Nigeria. Refiners can even sell to other west African countries just like other nations or refiners do refine and have been selling to us. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by ufotunang: 6:38pm On Jan 30, 2022 |
Just to build the refinery they cannot since 2015...just to loot money they know how to do perfectly |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 6:41pm On Jan 30, 2022 |
] RepoMan007: Because Dangote was able to secure funding from the banks for his refinery, who in turn were glad to give him the money because they know that come rain, come shine, they would get their money back, even if the refinery fails because subsidy. Local refining remains profitable because the refiner sells at a profit to the govt who then sell to consumers within Nigeria. Refiners can even sell to other west African countries just like other nations or refiners do refine and have been selling to us. Yes, but government is not going to buy fuel refined above N200 and sell it below N170 for people like you, plus subsidy is becoming diffiuclt to pay since it comes from crude oil revenue...which is never stable. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Reference(m): 6:43pm On Jan 30, 2022 |
DP. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Reference(m): 6:44pm On Jan 30, 2022 |
For a few months now the price of crude has been sufficiently high to wipe away all the excuses of..... 'In Jonathan's time....' you know the rest.... Let us see what new reasons the government and its teeming, hard boiled fanatics will give for the continuously shoddy performance of the economy going forward. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Reference(m): 6:46pm On Jan 30, 2022 |
Sonn: You can say that again.... |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 6:49pm On Jan 30, 2022 |
Reference: 1.I wish that was the case...but the era of low oil prices which meant we had to take loans to keep head above water, means that we can't expect any thing from the oil increase. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty. SAUCE From 2008-9 and 2011-14, we had high oil prices. Then the bottom fell out from 2014...which lead to where we are. Same story from 1971-82 when prices were high, and then 1982-2008, prices stayed low. By 1987, we were sipping SAP. 2.Buhari had some tools to deal with the problem. Remove subsides, diversify the economy, cut excess spending, deal with corruption. Tools unused. 1 Like |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Reference(m): 7:00pm On Jan 30, 2022 |
backbencher: Nice. But how did other governments of the past manage to keep out of the crazy borrowing (bordering on near tripling of the national debt stock in only 7 years) when oil prices were equally low. Because of a torrent of putrid propaganda we seem to have forgotten that oil price fluctuation is cyclical and low prices did not arrive with the present government. Historical lows occurred during the Abacha regime and tarried until the later part of the Obasanjo regime, even during the Shagari regime if memory serves me right. Yet with a wasteful system of democratic feeding pots the man from Ota still managed to reduce the national debt to historical lows and keep it there until Yaradua opened the pandoras box again. What is it about this goverment and perhaps Yaradua's that just cannot manage resources and keep the cost of running government low. Because that is the only difference between the prudence of the Obasanjo regime and the extravagance of this regime.... cost of government/governance. 1 Like 1 Share |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by jamace(m): 7:13pm On Jan 30, 2022 |
Who are those calculating this subsidy and who are those being paid the subsidy? Nigerians want to know them. Is Buhari tactically settling the North under the guise of subsidy?. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 7:24pm On Jan 30, 2022 |
Reference: All past governments borrowed. Obasanjo got us a deal in 2006 , where we paid off two thirds of our debt in return for G7 waiving the remaining thrid. They borrow because our revenue is dependent on whatever resource we are selling. If the price of that resource is below sustenance level we have to borrow. Even Yaradua borrowed a bit. As did GEJ. Buhari's borrowing is worse because our revenue from oil took a beating under his regime. That's why my problem with Nigeria is that our leaders cannot take us off resource dependency. Especially Buhari |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 7:30pm On Jan 30, 2022 |
jamace: Before 2016/17, everyone who had an import permit who imported fuel and sold it got a bit of subsidy payments , as did transporters and marketers. From 2017 , NNPC became the sole importer of fuel, and as such gets compensated for importing fuel at 282 naira now and selling it at 163 naira. Then transporters still get their transport costs subsidised so that fuel costs the same wherever. It's a variety of Nigerians. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Hiq0: 8:05pm On Jan 30, 2022 |
Jesus |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by RepoMan007: 9:16pm On Jan 30, 2022 |
backbencher:they are doing the above already and I wonder what makes you think they will ever stop. Landing cost of litre of petrol is above N200 and pump prices are below N170. It is just a matter of buying from Dangote and the modular refineries in otder to save transportation and import duty cost. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by alphaNomega: 9:27pm On Jan 30, 2022 |
Revolution2022: Nobody will build a refinery and give you cheap fuel. No matter who runs the refinery, you're likely to get fuel even more expensive. Nigeria is cursed, crude oil price goes up, we suffer. It comes down we suffer RepoMan007:The Dangote I know will even add extra charges. Just look at what he is doing with cement. Don't think for one second there will be cheap fuel if we have functional refineries because Nigeria is a cursed country. |
Re: Rising Crude Price Pushes Petrol Subsidy To ₦16 Billion Per Day by Nobody: 9:34pm On Jan 30, 2022 |
alphaNomega:I am talking about ending fuel subsidy payment to fraudulent fuel marketers. |
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