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Nairaland Forum / Nairaland / General / Politics / Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC (19016 Views)
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Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by obi58: 11:45am On Mar 06, 2022 |
backbencher: Forget about whether it would be cheap or not. if the government is serious, Let's get the refineries working first and stop using our scarce Forex to import fuel at international rates and further deepen our economic woes to satisfy the cabal who are not in the least bit interested in the welfare of the people. Let's get an accurate picture of our domestic consumption and use it to set a quota for domestic refineries to produce. Let them buy from the nnpc in naira, refine in naira and sell in naira to Nigerians. I'm sure if the government beams it's eyes on the oil industry a lot of scams and padding in the so called production costs will be revealed and eliminated and as a result you will find out that these costs are not as expensive as you think. |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by obi58: 11:54am On Mar 06, 2022 |
budaatum: Bros two words for you: 'essential commodities'. Google that and the role governments have to play in ensuring these goods are available and affordable for their people. |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by obi58: 11:55am On Mar 06, 2022 |
budaatum: If as you say we are incompetent. Why then do you want incompetent oil workers to be paid at par with their competent counterparts in Saudi Arabia? |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by obi58: 12:02pm On Mar 06, 2022 |
budaatum: More propaganda. The US subsidises domestic agricultural production and this has not discouraged farming in the US in any capacity. If anything it has encouraged farmers to farm in the confidence that the government would cover any losses they incur if their produce is not sold or gets bad. So what are we saying? China employs protectionist policies to ensure the interests of their indigenes are protected and that locally produced goods are way cheaper than what is exported to other countries. Why can't we emulate these good practices 1 Like |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 1:18pm On Mar 06, 2022 |
obi58: Did you read the bit I said we hire oil workers from India and pay them exhorbitantly? It's a global business, Obi. You pay market determined wages to get competent staff or hope your oil springs out the earth by itself or you get it out with our amazingly wonderful JuJu. Nigerian startups are raising billions, but can’t find workers The Oil Industry Is Facing A Labor Shortage |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 1:24pm On Mar 06, 2022 |
obi58: And you think that's a good thing? Almost 90% of the $540bn in global subsidies given to farmers every year are “harmful”, a startling UN report has found. obi58:But we do. Oil subsidy, wage subsidy, and I'm certain you are worth a lot more than 30k a month. |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by obi58: 6:52pm On Mar 06, 2022 |
budaatum: Bros we don't. It is standard global practice for serious governments to subsidize production of essential commodities instead of consumption. Saying subsidies is not good for economic growth is simplistic at best and elitist at worst because no economy can flourish without government intervention either via regulation or spending. This is why we're canvassing for getting the refineries working again and government doing everything to ensure they operate optimally for the common good. And you can keep on singing it that we need to pay international wage rates to attract the best oil workers. I refuse to believe that with our daily production quota we will be unable to pay those costs unless we sell crude in dollars. Big lie. 1 Like 1 Share |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 8:42pm On Mar 06, 2022 |
obi58:Actually, serious governments tax production and consumption of essential goods because tax is the only place governments get their income from. But you want government to now use that tax money to subsidise a portion of the economy to the detriment of the whole? obi58:Regulation and spending is not the same as subsidy, Obi, please! Government can spend by investing, and the better spending is on infrastructure, and not on recurring consumption which is where subsidies end up. obi58:Where I'm from we say, keep doing as we've always done so you get the results you've always gotten. I myself laugh at the stupidity of repeating what results in failure. You've hopefully noticed that government has repeatedly failed at "doing everything to ensure they operate optimally for the common good" for decades now. Government has not, can not, and should not run refineries or any industry because they are usually not successful at it. Seriously, I can not believe I need to be telling you how incompetent our governments are! obi58:I believe you should be paid a competitive global market wage instead of the paltry 30k the government insists on paying you. That way, you'd be able to travel internationally, pay good schools to educate your children, and buy a brand new car instead of having to settle for 15 year old junk from Europe and US. But please forgive me if I am valuing you far much more than you are actually worth. I guess I'm assuming you are one of the best and worthy of a competitive pay instead of being paid peanuts.
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Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 9:09pm On Mar 06, 2022 |
Here's a good sum up of the effect of subsidies and government incompetence in my state. Okerenla: |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by davessales039(m): 12:08pm On Mar 07, 2022 |
uccheks: Nigeria has always been a joke to itself/herself. |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by Raypawer(m): 8:53pm On Mar 08, 2022 |
No, see this if we start patronising the local refineries, and pay them the subsidy, even if they are loosing, there is a way business works, They might not break even in 12 months, but being in business will help them learn which will increase their capacity and eventually help them grow bigger that they will not need subsidy to stay profitable The big companies in the world did not start up with profit.. backbencher: |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by Nobody: 9:28pm On Mar 08, 2022 |
Raypawer: The thing is 1.Nigeria cannot afford subsides on petroleum. Unless we tax far more than the number of people we tax in this country. 2.Subsidies are why we have bad refineries in the first instance. Sell petrol at a loss, pay a subsidy that does not cover the loss, and the refineries lose money, and then break down, with sabotage and corruption finishing the job. 3. As much as we all hate the idea of expensive petrol, the only way to let the refineries work well...the modular refineries, is to allow them sell the petrol they make there at a profit. 4.Paying subsidies amounts to making the refineries sell petrol at a loss, and then pay them money called subsidy that barely or does not cover the loss due to a host of factors. 5.Call me a Buhari supporter, or a hater of the masses, or someone who loves dogs......modular refineries are a business. And the best way to run businesses is not to subsidise them into losses...so that we can buy fuel at N40 and be happy. People have to be paid for making the fuel available from the refineries. 1 Like 1 Share |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 2:49pm On Mar 09, 2022 |
backbencher: Backbencher, in my day this was form 3 Economics, and had been alluded to with "Mr Giwa was a trader" in primary school when "his shop was full of things to sell". Did they abolish 'supply and demand', and 'price elasticity', when the current forms were abolished? Your tenacity delights! |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by Raypawer(m): 4:14pm On Mar 10, 2022 |
I like your view, but the point here is not paying them to run at a loss, No, no, my point is that the modular refineries should as much as possible try to stay in operations As we stand now, we are paying subsidy heavily and the modular refineries are not working, we are loosing heavily on both ends Look at it from this angle, the modular refineries produce even if its 35% of total consumption in Nigeria, which will minimise their loss, and at the same time they are in operation They then present what they have to NNPC, since NNPC is the sole importer now (according to them). NNPC buys from them, and NNPC will sell to Nigerians at what ever rate they wish They should negotiate with Government if they have to do so to get working That way 1. The local refineries will stay in operation 2. We will have some more gainful employment in the country 3. The refinery operators will gain some business experience 4. We will save some money from shipping 5. Fuel scarcity will reduce as time to market will drastically reduce 6. We will save some FOREX and channel it to another sector 7. Corruption will reduce in a way And that way, money flows back into the economy that will help us stay afloat Until we are ready to deregulat the downstream sector.
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Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 12:13am On Mar 12, 2022 |
Raypawer: Why should NNPC buy from local producers, Ray? Can local producers not find market of their own? Subsidies distort market for local producers to the benefit of importers, and Nigerians really ought to be on the streets protesting against it. If subsidies are removed, local producers will fill the market and competition will eventually suppress cost and price and increase employment opportunities instead of providing employment where we buy from! |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by Antiislaam(m): 7:39am On Mar 12, 2022 |
budaatum: You're a disgrace to humanity, you can as well delete them
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Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by Raypawer(m): 11:56am On Mar 12, 2022 |
Currently NNPC is regulating everything, that's how they are able to pay subsidy First of all, according to NNPC, they are the only once importing Fuel, All the independent importers have been halted or they are now doing sub contract for NNPC, if their claim is true That's why the downstream sector is regulated. If we take NNPC out of the picture, Nigeria will blossom in a matter of 1 or 2 months, that has been our request for a while now Total Deregulation of the Downstream Sector It's the regulation from NNPC that is sending away alot of investors and big players budaatum: 1 Like 1 Share |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 3:54pm On Mar 12, 2022 |
Raypawer: But local modulars don't need subsidy, since they are not importing, so why should they do the opposite of what would allow them to blossom by putting NNPC in the picture? Remove "regulation from NNPC that is sending away a lot of investors and big players" from what you are suggesting, and I will invest in your wonderful blossoming idea, is what I'm saying. NNPC has far too much work to do already, so let them let modulars assist them without NNPC interference. |
Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 6:25pm On Mar 12, 2022 |
I just received a copy of The Prize: The Epic Quest for Oil, Money, and Power by Daniel Yergin. https://en.m.wikipedia.org/wiki/The_Prize:_The_Epic_Quest_for_Oil,_Money,_and_Power I doubt I'd ever read it myself, but the index has a whole heap on Nigeria that I do intend to read because knowledge is what will place the future in our hands. If anyone does read it (and I tell you, it is readable just that my eyes don't work so well no more), do come educate buda please.
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Re: Modular Refineries Can’t Refine Fuel Due To Price Regulation – NNPC by budaatum: 6:36pm On Mar 15, 2022 |
Petrol subsidy: Civil servants risk months of unpaid salaries https://businessday.ng/amp/business-economy/article/petrol-subsidy-civil-servants-risk-months-of-unpaid-salaries/ |
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