rocknation62:
Russians & Ukrainian doing there own, Nigeria sef dey do there own.

No problem!!!

Meanwhile

We haven’t hard from our Dear Slawormiir in a while & nobody is saying anything about it.


Damn nigga!
Issoriit

Daammn nigga
Is not alright

We own the crude and as such we don't have to sell at international market price. The cost of extraction is about $25 dollars per barrel in Nigeria so at $100 market price we are already making a killing in profit.
Crude is priced in Dollars unfortunately and as such no economic gains per say from it's exportation because our Naira is not demanded for to pay for it. This therefore does not help our deplorable exchange rate. The landing cost calculation your talking about takes into account prevailing exchange rate. But unfortunately prevailing exchange rate in nigeria does not provide required dollars when needed due to scarcity. If the black market rate where to be used in landing cost calculation the landing cost will be far higher than what you stated above. Remember the black market has the actual dollar due to scarcity in official market. Look at how demand and supply will play out. You approach black market on week one at the rate of N570 by week 2 black market will now be N590 then week 16 it may be N800 per dollar. The above scenario will affect your landing cost calculation negatively the effect of this will lead to very high inflation to the extent where Nigerians will not be able to afford a litre of petrol. This is exactly what happened in Lebanon some weeks ago. The best option like I said is to refine locally and isolate international market price from local price. Dont forget wages Dont increase commensurate with increasing petrol prices and it's effect affects even prices of basic food items sold in the market.
Chairman look at these factors holistically before you insist on subsidy removal.

backbencher:


Maybe.




True.
.

So what do you call the difference between the landing cost and the cost at the pump?

We swap crude for the amount of fuel refined from the crude...it still has to be paid for....the refined fuel still costs money. Yes, we give them crude oil and get refined fuel....which at the end of the day still costs above N280 per liter...and rising.

So we have to bring the refined fuel back into the country at N282 and above and sell it at N162. SUBSIDY IS WHAT COVERS THE RESULTING LOSS

It does not effing matter how much we swap fuel for crude...the fact is the cost of a liter of refined fuel is STILL HIGHER THAN the price at the pump. In order for NNPC to afford selling the price at the pump...NNPC gets paid a subsidy!.

Finally, subsidy costs include transport costs, and also covering the losses between the N282 landing cost and N162 sale price.

Either way, that's not how to run a business. Just simply let fuel be imported in and sold at market price so that government does not throw away 3 trillion naira or more in the name of subsidy.

Which is what I am driving at. Let them do their business and swaps....just not at our expense. Even if it means higher prices..


No it won't.

The refined product still has to be sold at a profit.

Subsides means that government sets the price of the refined product, which is usually below the refining price because...we have to help the poor.

We lost our refinereis selling refined product at a loss, and paying a subsidy that did not cover it.

You have to remove the control over prices so that ENOUGH profit is made for the refinereis to run well.


You want cheap fuel. Fuel is not cheap.

skj1377:
We own the crude and as such we don't have to sell at international market price. The cost of extraction is about $25 dollars per barrel in Nigeria so at $100 market price we are already making a killing in profit.

Yes, and the people who do the extracting would love to make that profit....it doesn't all go to our pockets.

Crude is priced in Dollars unfortunately and as such no economic gains per say from it's exportation because our Naira is not demanded for to pay for it. This therefore does not help our deplorable exchange rate. The landing cost calculation your talking about takes into account prevailing exchange rate. But unfortunately prevailing exchange rate in nigeria does not provide required dollars when needed due to scarcity. If the black market rate where to be used in landing cost calculation the landing cost will be far higher than what you stated above. Remember the black market has the actual dollar due to scarcity in official market. Look at how demand and supply will play out. You approach black market on week one at the rate of N570 by week 2 black market will now be N590 then week 16 it may be N800 per dollar. The above scenario will affect your landing cost calculation negatively the effect of this will lead to very high inflation to the extent where Nigerians will not be able to afford a litre of petrol. This is exactly what happened in Lebanon some weeks ago. The best option like I said is to refine locally and isolate international market price from local price. Dont forget wages Dont increase commensurate with increasing petrol prices and it's effect affects even prices of basic food items sold in the market.
Chairman look at these factors holistically before you insist on subsidy removal.

So, if you were running a business selling soft drinks at N200 per bottle, after buying from manufacturier at N120 per bottle, and I was the government and came and insisted you sold the soft drinks at N80 per liter, the same soft drinks you bought from the manufacturer..would you agree?

Also, if we refine at home, you won't be paying just the extraction cost, by the way. You would pay far more than that, because , business.

You would also pay for the cost of refining the petrol, and the profit that the refiner wants to make, so that at the end the refiner can pay workers salaries, increase them, pay for maintenance costs, upgrade costs, and pay for new refinereis, all without....and this is the important bit to me....government trhowing money away in the name of subsidy.

At the end, your argument is, that the industry should not be allowed to set its prices, so that we can have cheap fuel. Well, we did that, and lost our refineries, because NO PROFIT TO MAINTAIN THEM AT THE LEVEL WE WANT.

I'm tired of us throwing away billiions in subsidy and going into debt to help the poor....no help the rich with cars. If you are not, then you better be. We are going to spend more than N3 trillion on subsidy. Think about it. Money gone...that could have been better used for our education and health subsides, so that they can have more money.




WITHOUT subsidy, NNPC could have been making N6 trillion or more in profit, government gets to keep the N3 trillion we would have used for subsidy and taxes the remaining N6 trillion, and we could have had more people attracted into the business.....and more profit.


And if we want to earn more forex, so that we can be free of foreign currency scarcity...I have said it many times on this site....NIGERIA must diversify away from oil. But your state and federal governments don't want to do the hard work. PDP and APC don't want to do the hard work. And it pisses me off honestly


If you think we should not let the extractors, the transporters and the refiners and sellers of fuel make a profit, but instead lose money because we want cheap fuel, then at the end, we all lose. We lost our refinereis already


And, yes, I KNOW WE ALL WILL SUFFER, AND YES, I KNOW PRICES WILL RISE WHEN FUEL SUBSIDY GOES. I don't like it. I wish it were effing otherwise. But at the end, we have no choice.

to even see the fuel for 250 per litre na struggle now.

Olawumi1032:
May God have mercy on us

No da call God every thin na GOD
Anythin our bad government of politician do na GOD

GOD y you da blame GOD SeE black man and church.....

rocknation62:
Russians & Ukrainian doing there own, Nigeria sef dey do there own.

No problem!!!

Meanwhile

We haven’t hard from our Dear Slawormiir in a while & nobody is saying anything about it.


Damn nigga!
Issoriit

Dem don bomb Slawomirr shuga mommy for Ukraine so no joy and no appetite for anything else... Business don fold up plus data and every every

Government should totally remove fuel subsidy. Fuel price has risen this past 3 weeks and heaven did not fall. It's high time we close our eyes and remove this leech and feel all the pains once and for all.

JayPeeOham:


Dem don bomb Slawomirr shuga mommy for Ukraine so no joy and no appetite for anything else... Business don fold up plus data and every every

Lols

Damn nigga!
Issorite

rocknation62:


Lols

Damn nigga!
Issorite

Be careful how you use those slogans make dem no go hack your phone ooo

rocknation62:
Russians & Ukrainian doing there own, Nigeria sef dey do there own.

No problem!!!

Meanwhile

We haven’t hard from our Dear Slawormiir in a while & nobody is saying anything about it.


Damn nigga!
Issoriit

True o. May be he is busy with anon team helping to h.ack Russian govt sites.

Damn Nigga!
Issoriit.

VanuatuWycombe:


True o. May be he is busy with anon team helping to h.ack Russian govt sites.

Damn Nigga!
Issoriit.

Lol �

Tess24:


It has always been a disaster...

Disaster disaster disaster

APC IS A DISASTER