GardenOfGod:
Crude Oil Price: MAN Warns Of Hyper Inflation, Subsidy Hits N400, Diesel, 625

The rising prices of crude since the Russia-Ukraine war began, coupled with exchange rate instability in Nigeria, among others, have pushed up the prices of refined petroleum products across the country, according to findings by The PUNCH.


Punch

Ipob why?!

NK who?!

Moferere:
Last week I bought diesel for ₦460 /litre, on Sunday, I bought it for ₦500/litre.. Only to get there yesterday and they told me it's ₦627/litre.

Mind you, 100 litres will only last for 8 hours.
That's how they are killing me softly in Nigeria

Had to temporarily shut down my business due to this whole diesel matter..

emmanuelbrown26:
I am loving it more and more jare. Atleast buhari has fulfilled part of his promises which is change.
Ndi afonja, hope say una dey buy fuel 100 and diesel 150? Bcs d change never even start we dun dey complain.

The price of diesel has nothing to do with Buhari It’s because of Russia-Ukraine war
I am just happy Nigeria consumes just under 500 barrels of oil per day otherwise it won’t be possible to pay subsidies again

GardenOfGod:
Crude Oil Price: MAN Warns Of Hyper Inflation, Subsidy Hits N400, Diesel, 625

The rising prices of crude since the Russia-Ukraine war began, coupled with exchange rate instability in Nigeria, among others, have pushed up the prices of refined petroleum products across the country, according to findings by The PUNCH.


Punch

we have refused to liberate ourselves by refining oil and have chosen to depend on western nations. This is the consequence of our ineptitude and incompetence let's see how the game will go!

GAZZUZZ:


This is one of the few things a common Nigerian benefits from being a Nigerian in an oil producing country.

We are not the only country that subsidised petroleum products, the UAE , Bahrain, etc subsidize products BUT have functional refineries that refine crude.

Until the govt can refine petroleum products locally subsidy should continue.

Do you know graduates still earn ₦40,000 per month in certain quarters? Do you know what removal of subsidy will do? End sars will be child's play, the govt will give the populace a common enemy.

Meeeen, naijas problems are many.

We need to drastically cut down our population and increase our productivity, because how can minimum wage still be N30,000 and people will give birth to 10s of children.

Then there are the criminals in government. If subsidy is removed, there would be a lot of money made available to build infrastructure and sure up our currency. Would you mind expensive fuel, if it means a dollar now goes for N150? In fact you won't even know it's expensive because the currency would be strong, so that N300 fuel would really look like N100 fuel.

However, we know how they steal everything and how their supporters support them to steal all. See Tinubu with bullion vans on election eve in broad day light, as he know no one can touch him. That is the kind of country Nigeria is, filled with BOLD THIEVES, BOLD BOLD THIEVES.

See when they were still collecting toll money from lekki epe, yet the road was trash. How could that be? How could it be that you drive on THIRD MAINLAND BRIDGE, a free road, yet that road has proper and brilliant lane markings, and all the street lights work, but then you pay N300 to pass lekki epe and all the lanes have all faded, plus darkness everywhere. They had stolen all the money, like everything. Think deeply about this, how much would it really have cost them to employ someone to mark lanes on that road and fix the lights? Maybe one days worth of toll collection? Maybe a weeks worth?

What is going on in this country, ok, we await the worst.....


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backbencher:



We are not paying subsidy to a white man's country.

What we do is import fuel ....that we refine in bad refineries abroad to keep subsidy costs down....refined from our crude, and make NNPC sell it at a loss to keep it cheap

Subsidy money then goes to NNPC to cover its losses from importing fuel at N330 and selling it at N162.

Problem is, as cost of refining fuel goes up, the cost of the subsidy goes up.

We keep costs low by refining in substandard refineries, and 'swapping' fuel for crude..otherwise our subsidy costs would be much higher than it is.

That still does not make things better.


As for domestic refining...the threat of subsidy is what keeps out most people from refining. If government is setting your price, you won't get return on investments. Banks won't lend to you for your refinery. (Dangote can build his own, because if he does not pay back the money, the banks take over his other lucrative investments to pay themsevles back)

We are saying the same thing.

We IMPORT petrol, so obviously we paid whoever we imported from at the full price ba? Or did we pay half price?

Then NNPC sell at a loss, which is where the subsidy come from.

So why can't NNPC pay in full for products produced in Nigeria?

VaselineCrew:


We are saying the same thing.

We IMPORT petrol, so obviously we paid whoever we imported from at the full price ba? Or did we pay half price?

Then NNPC sell at a loss, which is where the subsidy come from.

So why can't NNPC pay in full for products produced in Nigeria?

Because if you want domestic refining, subsidy, and by extension government setting the price for petrol...has to go so that refienreis would work profitably.

Even if it means NNPC buying fuel at a high price and selling it at N350 and above....per liter.

backbencher:


That's because in order to get a refinery at home, subsidy on PMS has to go first.

Same problem his predecessor had. Signed an agreement to build 3 refineries with the chinese, which were not built because subsidy was not removed completely.

If subsidy does not go, the refineries cannot operate profitably. Had we removed subsidy in 2012 or 2015 or 1993 we would have had refineries galore.

But everytime subsidy removal has been suggested, people come on the street and cry poverty. People threaten to come on the street and cry poverty. So, subsides remain, and investors keep out.

At the end, someone had to take an unpopular but good decision, but no...

Funny excuses, why didn't he build the refinery. Dangote can build but mighty FG cant

backbencher:


Because if you want domestic refining, subsidy, and by extension government setting the price for petrol...has to go so that refienreis would work profitably.

Even if it means NNPC buying fuel at a high price and selling it at N350 and above....per liter.

There's no excuse not to build the refinery because Dangote is building one.
Those quack trains from China and rail lines should have built a refinery by now.

brandsoncharlie:

Funny excuses, why didn't he build the refinery. Dangote can build but mighty FG cant

Because government is spending the money that could have gone into building refineries on subsides paid so that you can have cheap fuel....which is why you voted for Buhari (I didn't).

And Dangote can build a refinery because he has the collateral to take loans to build that refinery of his.

And yes, I am not excusing Buhari. Buhari should have removed subsides since. He did not, here we are.

Moferere:
Last week I bought diesel for ₦460 /litre, on Sunday, I bought it for ₦500/litre.. Only to get there yesterday and they told me it's ₦627/litre.

Mind you, 100 litres will only last for 8 hours.
That's how they are killing me softly in Nigeria

Seriously, how come we haven't shut down this country.

And the worst part of it, the old man just keep traveling up and down.

Moferere:
Last week I bought diesel for ₦460 /litre, on Sunday, I bought it for ₦500/litre.. Only to get there yesterday and they told me it's ₦627/litre.

Mind you, 100 litres will only last for 8 hours.
That's how they are killing me softly in Nigeria

i wonder how hotels and eateries survive these days? its practically killing businesses.

samtinx:
I can't believe in mt lifetime I bought pms fuel for 65 naira and here I am, decade later buying same product for 400naira.
I beg who we offend

i bought at 70 kobo back in 1992 ooo, suddenly abacha carried it to 3.25 ...we don suffer o

onyxo76:


i bought at 70 kobo back in 1992 ooo, suddenly abacha carried it to 3.25 ...we don suffer o

It was 15 kobo in 1981 even.

affable4:
There is something about telling lies, you have to keep lying to cover up the old lies.

Some people are cashing out big time.

What are you saying? How much is a litre of diesel or petrol in unsubsidized markets??

backbencher:


It was 15 kobo in 1981 even.

surely... you have a good insight into this removal of subsidy ,its actually the way to go, however, most people
don't trust the FG with the proceeds that will be saved to be channeled into better infrastructure.

onyxo76:

surely... you have a good insight into this removal of subsidy ,its actually the way to go, however, most people
don't trust the FG with the proceeds that will be saved to be channeled into better infrastructure.

Well, at the end of the day, sir, people have to take part in their democracy, instead of just crying and crying on nairaland and on the street...if they want some dividends.

anigbajumo:
There’s no doubt about it APC led government will finally explode this country before 2023. Imagine diesel at the rate of N650 from 220 in November last year?? Things were not bad like this even during the time of Covid, Most manufacturing companies are using diesel to power their engine. Nigerians should brace up for hard time, it will not even inflation this case but hyper-inflation. Buhari as minister of petroleum is a premium failure pro max. He should sack himself as a petroleum minister. Before u attack me and say rubbish I didn’t belong to any political party.

Diesel was not 220 Nov last year. Stop lying.

It was around 350. I still bought then. Except maybe you went to waterside to buy illegally refined one.

Moreover, diesel is deregulated. Its cost moves as international crude price moves.

Compare crude price at that Nov and now and you'll see the trend.

onyxo76:

surely... you have a good insight into this removal of subsidy ,its actually the way to go, however, most people
don't trust the FG with the proceeds that will be saved to be channeled into better infrastructure.

Don't the FG and Most important state Governors

CryptoTeacher:
Hardship is about to bite harder. Many more businesses will fold, many more people will be out of jobs, those still with jobs will have lower purchasing power, insecurity will rise and the cycle continues as the government will remain helpless. Wahala no dey finish

Yes, I agree with this. But the ironical part is that government will have more money!
Until we start refining internally, every situation will be working against the masses; crude oil price is low, we bear the brunt, crude oil price skyrocket, we still suffer it. It's a hell of a system!

Ok. How do I reach you?
Reach me on kehindeabdullahi18@gmail.com and we proceed from there.
Thanks.

backbencher:


Sorry, regretfully , due to my policy of being private on this forum, I will be unable to do so.

SIBF:
Ok. How do I reach you?
Reach me on kehindeabdullahi18@gmail.com and we proceed from there.
Thanks.

Again, I must decline. I wish to remain private here. My sincere regrets.

Mumusaphire:
Die-sel, #625? Lol. And many irrelevant online miscreants supporting Putin.

If we refine petroleum products alot could have been prevented. Putin has nothing to do with your misery in Nigeria. On the contrary Russia, Saudi, Venezuela are making more money at the moment more than ever.

What happened to Nigeria?

backbencher:


Because government is spending the money that could have gone into building refineries on subsides paid so that you can have cheap fuel....which is why you voted for Buhari (I didn't).

And Dangote can build a refinery because he has the collateral to take loans to build that refinery of his.

And yes, I am not excusing Buhari. Buhari should have removed subsides since. He did not, here we are.

Buhari should take loans like dangote and build no excuse not to build.
He took loans from China to build train tracks he should also take and build.

backbencher:


That's because in order to get a refinery at home, subsidy on PMS has to go first.

Same problem his predecessor had. Signed an agreement to build 3 refineries with the chinese, which were not built because subsidy was not removed completely.

If subsidy does not go, the refineries cannot operate profitably. Had we removed subsidy in 2012 or 2015 or 1993 we would have had refineries galore.

But everytime subsidy removal has been suggested, people come on the street and cry poverty. People threaten to come on the street and cry poverty. So, subsides remain, and investors keep out.

At the end, someone had to take an unpopular but good decision, but no...

His predecessor removed it and the likes of Buhari, Adebayo and SW vilified him and insisted against common sense that they want subsidy back.

Please can you put the blame squarely where it should be without rolling around like a dying snake.

dettolgel:


His predecessor removed it and the likes of Buhari, Adebayo and SW vilified him and insisted against common sense that they want subsidy back.

Please can you put the blame squarely where it should be without rolling around like a dying snake.

Read my comments, where I blame Buhari and company...especially for his not removing it when he was in power

Also, most people back subsidy. I have been abused on this site beyond measure for supporting subsidy removal myself.

brandsoncharlie:

Buhari should take loans like dangote and build no excuse not to build.
He took loans from China to build train tracks he should also take and build.

In 2010, GEJ signed a deal with China to build three refineries. They have not been built because when GEJ tried to remove subsides, Nigerians said no.

We also signed a deal with another private company in 2012, and what happened...subsidy

China signed the same deal with Niger Republic some years before. The project has been completed since, and Niger is even exporting fuel from the thing...because Niger does not have fuel subsidy, and as such the project is making ROI.

When you subsidise fuel, the price control inherent in the thing means that you do not earn enough profit to make adequate return on investment. And yes, China , or the Chinese oil company which signed both deals above , wanted to make ROI.

So at the end, if the thing cannot make ROI...what do you expect.


Dangote is building a refinery, because he took loans from banks to do so...and those banks know that if the worst comes to the worst, they get paid back.

This country na joke

We are in for a long thing in this country. This is what happens when you play with governance

NGArmyTerrorist:
A citizens of suffering and smiling! Continue! Don't protest! Don't air your views! Get frowning and grumbling! Welcome to the Zoo! I had never heard such in Russia, Libya, Saudis, Venezuela before!

Honestly we cannot continue like this. NIGERIANS NEEDS TO HIT THE STREET AND CHANGE THIS WHOLE SET UP.

backbencher:


In 2010, GEJ signed a deal with China to build three refineries. They have not been built because when GEJ tried to remove subsides, Nigerians said no.

We also signed a deal with another private company in 2012, and what happened...subsidy

China signed the same deal with Niger Republic some years before. The project has been completed since, and Niger is even exporting fuel from the thing...because Niger does not have fuel subsidy, and as such the project is making ROI.

When you subsidise fuel, the price control inherent in the thing means that you do not earn enough profit to make adequate return on investment. And yes, China , or the Chinese oil company which signed both deals above , wanted to make ROI.

So at the end, if the thing cannot make ROI...what do you expect.


Dangote is building a refinery, because he took loans from banks to do so...and those banks know that if the worst comes to the worst, they get paid back.

So buhari didn't know there's problem of fuel subsidy before he promised to build refinery??