Revolution2022:
I am talking about ending fuel subsidy payment to fraudulent fuel marketers.

That one has been resolved to an extent as NNPC is the sole importer of petroleum products. However some of these fraudulent marketers have their tentacles deep within NNPC and there has been no will to track and remove such

RepoMan007:
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.

The fact is, it is costing government billions in money to keep petrol below N170...also it is driving us into debt, impacting on our oil revenue, and forcing us to take more and more loans.

That's why it has to go...and the market will take over.

Other African countries sell fuel higher than we do, and they are as poor as we are, and some are even poorer.

alphaNomega:


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

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.

It is not a matter of curses

Refinereis cost money to maintain, and to upgrade, and to keep in good repair.

Then there are the workers...pretty soon they would join NUPENG and PENGASSAN and demand higher salaries....that's additon to the cost.

Then the fuel has to be transported, and as such transporters have to be paid for transporting the fuel.

Marketers too have to make a profit...to pay their workers, and to pay for maintenance, upgrades.

And the workers who bring out the crude...have to be paid. Rigs have to be maintained, upgraded, etc.

And everyone...Dangote...has to pay taxes.

Nigeria is not a cursed country because of price rises. If you want cheap fuel, either you start telling workers and employers in the industry that they all have to take paycuts, or they stop repairing refineries...and maintaing them...so that you can have cheap fuel.

Or you pay for the subsidy from your taxes...which other sane countries do...

Harsh, but am sure you work for someone, or are even a businessman. Would you like your right to make a profit to be taken away? Would you? Because that is what you are advocating.

backbencher:


The fact is, it is costing government billions in money to keep petrol below N170...also it is driving us into debt, impacting on our oil revenue, and forcing us to take more and more loans.

That's why it has to go...and the market will take over.

Other African countries sell fuel higher than we do, and they are as poor as we are, and some are even poorer.

Do those other African countries have more fuel/crude oil than you do?
Onye iberibe!

ChybuzzDD:


Do those other African countries have more fuel/crude oil than you do?
Onye iberibe!

The problem is that we pay for subsides from the same money we use to pay for crude oil...and it means that as the cost of producing the petrol from crude oil rises, so does the cost of subsides.

This leads to us taking money from other sectors to pay for subsides...and puts us in big trobule.

As you probably know, societies that have some form of subsidies don't pay for the subsidy from their oil revenue, they pay for it from a tax.

Finally, oil revenue is not enough for us. We produce about 1.3-2 million barrels of crude a day and we are 200 million people. Countries like Saudi, UAE and Qatar produce about the same (or in Saudi case, about 10million barrels of crude a day) for 40 million, 12million and 1.3 million people respectively, which is why they can afford subsides sans sweat. They earn enough revenue from oil.We cannot.Our populaiton is too big for the revenue we earn from crude to sustain us. Always has been.

Good am, and do have a good day.

backbencher:


The problem is that we pay for subsides from the same money we use to pay for crude oil...and it means that as the cost of producing the petrol from crude oil rises, so does the cost of subsides.

This leads to us taking money from other sectors to pay for subsides...and puts us in big trobule.

As you probably know, societies that have some form of subsidies don't pay for the subsidy from their oil revenue, they pay for it from a tax.

Finally, oil revenue is not enough for us. We produce about 1.3-2 million barrels of crude a day and we are 200 million people. Countries like Saudi, UAE and Qatar produce about the same (or in Saudi case, about 10million barrels of crude a day) for 40 million, 12million and 1.3 million people respectively, which is why they can afford subsides sans sweat. They earn enough revenue from oil.We cannot.Our populaiton is too big for the revenue we earn from crude to sustain us. Always has been.

Good am, and do have a good day.

This guy keeps committing blunders while desperately trying to defend his criminally-minded politicians and co-travellers.

The Arab countries you mentioned, and their neighbours, subsidize fuel for their citizens, and their citizens don't pay any tax. I live in one of those countries, and do not pay any tax. That's one of the gains of having crude oil.

There must be something Nigerians should be able to benefit from the oil God blessed their land with. Unfortunately, people like you have conspired with criminals to ensure they're completely deprived of those benefits.

Just find a place and rest, you cannot successfully defend those thieves in Nigeria.

ChybuzzDD:


This guy keeps committing blunders while desperately trying to defend his criminally-minded politicians and co-travellers.

I'm afraid you have me at a disadvatage, good sir.

The Arab countries you mentioned, and their neighbours, subsidize fuel for their citizens, and their citizens don't pay any tax. I live in one of those countries, and do not pay any tax. That's one of the gains of having crude oil.

Actually no.

1.The UK has crude oil , as does Canada, and no they do not subsidise crude oil for all their citizens, ditto the USA , who is the world's largest oil producer.

2.Back to the Arab countries, at current prices of 90 dollars per barrel.

UAE: 2.4 million barrels of crude a day : 216 million dollars, which shared among 12 million people gives them .....18 dollars per person....
Qatar: I.3 million barrels of crude a day: 117 million dollars, shared among 1.3 million people gives them....90 dollars per barrel
Saudi Arabia : 10 million barrels of crude a day : 900 million dollars, shared among 40 million people....22.5 dollars per barrel

Now Nigeria
1.4 MILLION barrels : 120 million dollars, shared among 211 million people.....0.6 dollars per person
It's a miracle how we have money to subsidsie oil

That's why your arab countries can subsidsie oil while Nigeria does so with much difficulty, and with loan taking.

AND THAT'S WHY buhari is a failure...because he chose to keep us dependent on oil instead of diversifying into other sources of revenue, including short term taxes, long term other raw materails...and INDUSTRIES.

There must be something Nigerians should be able to benefit from the oil God blessed their land with. Unfortunately, people like you have conspired with criminals to ensure they're completely deprived of those benefits.

As I have shown, oil isn't enough. Harsh, but true. Our leaders fail us by not doing more to diversify. IF THEY diversifed, we would have been in a better place.

Buhari had a golden opportunity to kickstart the process, but no....

Just find a place and rest, you cannot successfully defend those thieves in Nigeria.

[/quote]

Again sir, you must be talking about someone else, not me. Good morning,

backbencher:


It is not a matter of curses

Refinereis cost money to maintain, and to upgrade, and to keep in good repair.

Then there are the workers...pretty soon they would join NUPENG and PENGASSAN and demand higher salaries....that's additon to the cost.

Then the fuel has to be transported, and as such transporters have to be paid for transporting the fuel.

Marketers too have to make a profit...to pay their workers, and to pay for maintenance, upgrades.

And the workers who bring out the crude...have to be paid. Rigs have to be maintained, upgraded, etc.

And everyone...Dangote...has to pay taxes.

Nigeria is not a cursed country because of price rises. If you want cheap fuel, either you start telling workers and employers in the industry that they all have to take paycuts, or they stop repairing refineries...and maintaing them...so that you can have cheap fuel.

Or you pay for the subsidy from your taxes...which other sane countries do...

Harsh, but am sure you work for someone, or are even a businessman. Would you like your right to make a profit to be taken away? Would you? Because that is what you are advocating.

Well, if your business needs people (workers and customers) to suffer before it makes profit, I strongly recommend you review your business plan.

backbencher:


...

2.Back to the Arab countries, at current prices of 90 dollars per barrel.

UAE: 2.4 million barrels of crude a day : 216 million dollars, which shared among 12 million people gives them .....18 dollars per person....
Qatar: I.3 million barrels of crude a day: 117 million dollars, shared among 1.3 million people gives them....90 dollars per barrel
Saudi Arabia : 10 million barrels of crude a day : 900 million dollars, shared among 40 million people....22.5 dollars per barrel

Now Nigeria
1.4 MILLION barrels : 120 million dollars, shared among 211 million people.....0.6 dollars per person
It's a miracle how we have money to subsidsie oil

....

There is no miracle, our population figures are overbloated. That's why we have been able to pay subsidy... Numbers do not lie

alphaNomega:


Well, if your business needs people (workers and customers) to suffer before it makes profit, I strongly recommend you review your business plan.

Exactly, which is why calling Nigeria cursed for considering subsidy removal does not work

There is no miracle, our population figures are overbloated. That's why we have been able to pay subsidy... Numbers do not lie

We pay subsidy by spending large amounts of money that could have been used elsewhere (and we take loans to cover the deficit)
Also, in the past, we did things like 1) stop maintaing refinereis 2) pay workers in NNPC from the crude revenue, not from money refinery makes 3) now that the refineries have failed, we pay substandard refineries abroad to refine our fuel cheaply...and the PMS we use now is low quality....which keeps subsidy costs low.

Etther way, we are getting into more debt.

For us to afford subsidy without issues...Nigeria would have to have a population of 20 million people...lower than even your idea of the population. Oil revenue cannot sustain all of us...bloating or no bloating.

That's why we have had bad leaders since independence...they have not diversified our economy at all.