Prometheus666:
Nigerians are ungrateful people. Upon all the Subsidy that government is spending to keep the price of petroleum products low, you people are still complaining.

Do you know how much fuel is sold in Europe and Americas. You should be grateful. When Tinubu becomes President, he will legalize drug business and print money and we will all enjoy.

grandstar:


Let me make this as simple as possible

Let's suppose in 2016 when they increased the price to N147 and said there was no more subsidy, $1= N147. Now that the official exchange rate is 440, for there to be no subsidy, the price will have to be around N440.

Therefore, the existence or non existence of a subsidy is dependent on two primary variables which are the exchange rate and the international price of crude oil, petrol, diesel at a specific point in time.

Most often, when governments have claimed there are no subsidies, it's when the price of crude oil is very low.

For instance, in 2012 when GEJ government deregulated the price of petrol and not just end the petrol subsidy, the price hit N147 per liter. At this time, oil was trading at over $100/barrel. Due to the nationwide protests, the price was reduced to N97. The exchange rate at this time was around $1- N155

However by 2015, the international price of crude oil had dropped to $35/barrel, and exchange rate was around 200. The government dropped the price from N97 to N87. At 87, no subsidy existed.

Deep educations about this is vital and not just focus on emotions as most people do.

Yes, fuel subsidy does provide benefits but the disadvantages far outweigh the advantages

The biggest disadvantage is that it discourages investment in petroleum refining. The price must be fully deregulated and not just the subsidy ended.

A subsidised price chases investors away from
investing. No foreign bank will lend you $2bn to set up a 100,000 bpd refinery without the price deregulated. Your income is far from guaranteed.

Look at what deregulated pricing did for the telecoms sector. In 2001, GSM licences were issued to MTN, Econet and MTEL. They were free to set their prices. Mtn and Econet both privately owned set their prices at 50/minute.
MTEL which is governed chose to bill at the populist price of N22 per minute.

Mtn and Econet invested massively while MTEL soon vanished from the scene. Globacom came in 2003 and introduced per second billing while Etisalat now 9jamobile came in last

The economy has been transformed due to the huge investments made by these playwrs. From only 400,000 phone lines in 2001,there are now over 100m.

Now, just think what would have happened if the price of petroleum products were deregulated. I'm sure by now Nigeria would be refining nothing less than 1.5m barrel per day. . I won't be surprised if it hits 2m bpd

Dangote refinery alone will employ 8,000 engineers. We have not included other high skilled graduates from other fields. Refining 2m bpd would mean about 32,000 engimeering jobs would be created.

We are yet to discuss the multiplier effects. I'm sure Adenuga, Otedola, Ondo and many others would have built refineries . Nigeria would have become the refining hub of Africa,if not the energy hub

Investments would have also flowed into fertiliser and petrochemicals.

lhordspy:
This time around if zombidients and yiiboo miscreants hide under the disguise of youth just like Endsars protest to cause mayhem, upset, looting, stealing, sabotage and other evil intentions they are known for. Especially in Lagos, which i know is their target due to hate and envy.

I urge the government to deal with them in the brutal way possible. If you need volunteer, please call us. We are ever ready to restore some people brain back to default settings.

lhordspy:
This time around if zombidients and yiiboo miscreants hide under the disguise of youth just like Endsars protest to cause mayhem, upset, looting, stealing, sabotage and other evil intentions they are known for. Especially in Lagos, which i know is their target due to hate and envy.

I urge the government to deal with them in the brutal way possible. If you need volunteer, please call us. We are ever ready to restore some people brain back to default settings.

OdefaGirl:



Mumu, under whose administration is everyone protesting all the time? You no get sense nah, if you do, you wouldn't let people know that you saw this disappointing and shameful thread. It's your paymasters on the seat and your candidate has vowed to continue from where he stopped..... You are even rejoicing that some people are staging a protest against the hardship everyone is facing in this country

PlayMaker14:
Same yoots that called GEJ unprintable names when the price was N85?


Same yoots that made a mockery coffin of GEJ when a dollar was N216 under the administration of GEJ?

Same yoots that voted massively for the Kunú guzzling drunkard called Buhari ignoring all warnings?

Na now their eyes don open?


Give them Ewedu now, and you'll see them misbehaving, and throwing their support for the urinating machine called Tinubu.

Una Mumu never do... Am talking about those Yoruba Muslims.... Make una use this same energy to vote Peter Obi.

lhordspy:
This time around if zombidients and yiiboo miscreants hide under the disguise of youth just like Endsars protest to cause mayhem, upset, looting, stealing, sabotage and other evil intentions they are known for. Especially in Lagos, which i know is their target due to hate and envy.

I urge the government to deal with them in the brutal way possible. If you need volunteer, please call us. We are ever ready to restore some people brain back to default settings.

PlayMaker14:
Same yoots that called GEJ unprintable names when the price was N85?


Same yoots that made a mockery coffin of GEJ when a dollar was N216 under the administration of GEJ?

Same yoots that voted massively for the Kunú guzzling drunkard called Buhari ignoring all warnings?

Na now their eyes don open?


Give them Ewedu now, and you'll see them misbehaving, and throwing their support for the urinating machine called Tinubu.

Una Mumu never do... Am talking about those Yoruba Muslims.... Make una use this same energy to vote Peter Obi.

AderonkeOlaniyi:


Amala and ewedu miscreant spotted. 10 Naira per comment gang.

toprealman:

Stop making Peter Obi look like a fool.
Where in this world are they exchanging dollar for 211?

CheapHomes1:


In which region are they selling fuel 110naira?

grandstar:
He is uninformed.

If NNPC was to follow best practices in the oil industry, the price of petrol would be sold at a deregulated price, probably hovering around N700.

The primary problem is the petrol subsidy. It's presently too high and Meole Kyari has been crying out, with the president being unresponsive.

At the very least, the government should increase the price to N450 per litrw. This would reduce the level of the subsidy and reduce pressure on the foreign reserves. It might also lead to some much needed appreciation of the Naira.

I suspect the president might want to keep the price the same, lest any increase in price leads to discontent, sending a large swathe of the electorate into the opposition arms

lhordspy:


Why this pain?

surgical:
you are an illiterate to be advocating a perpetual increase in price of an important commodity like fuel that will have a multiplier effect on the economy, a commodity we have comparative advantage in.
All supporters of APC are dumb people why can't you guys practice what you preach, you and your government want us to stop importation but you continue to import petrol we can conveniently produce here,importing hardship to Nigeria in the process and wasting scarce foreign exchange

Femi8586:


Are these guys really being paid to defend APC government online?

lhordspy:
This time around if zombidients and yiiboo miscreants hide under the disguise of youth just like Endsars protest to cause mayhem, upset, looting, stealing, sabotage and other evil intentions they are known for. Especially in Lagos, which i know is their target due to hate and envy.

I urge the government to deal with them in the brutal way possible. If you need volunteer, please call us. We are ever ready to restore some people brain back to default settings.

TimeTraveller:
Lowkey, they are lawless Obidients who want to make the country ungovernable to score cheap political points.
They did it with EndSars.
As long as the protests take place in the East on Monday, there is no problem.
No bastarrrd should disrupt Lagos's peace in the name of protests.

That Nnamdi Kanu template can NEVER work again.

NEVER AGAIN!

grandstar:
He is uninformed.

If NNPC was to follow best practices in the oil industry, the price of petrol would be sold at a deregulated price, probably hovering around N700.

The primary problem is the petrol subsidy. It's presently too high and Meole Kyari has been crying out, with the president being unresponsive.

At the very least, the government should increase the price to N450 per litrw. This would reduce the level of the subsidy and reduce pressure on the foreign reserves. It might also lead to some much needed appreciation of the Naira.

I suspect the president might want to keep the price the same, lest any increase in price leads to discontent, sending a large swathe of the electorate into the opposition arms

Atonto:


This is apt and straight to the point.
The only comment devoid of political and ethnic sentiment i've read so far. Is either some people don't read or they don't understand the global political climate at this period. The price of Fuel cannot go down, in as much we are not the one refining it. Increase in price is a global disaster exasperated by the Ukraine and Russia war. The issue of Subsidy is another colossal mistake of Nigeria and her entitlement generation. For us to really know where we stand, subsidy must go and accountability must prevail. This is no Govt doing, it is just the latest pandemic around and no country is immune to it. We just need to be factual and look for a way forward. Government at this election period will not make mistake of removing subsidy. But we should be ready to support whoever win the 2023 election on subsidy removal. that's just the way to go.

PlayMaker14:
Same yoots that called GEJ unprintable names when the price was N85?


Same yoots that made a mockery coffin of GEJ when a dollar was N216 under the administration of GEJ?

Same yoots that voted massively for the Kunú guzzling drunkard called Buhari ignoring all warnings?

Na now their eyes don open?


Give them Ewedu now, and you'll see them misbehaving, and throwing their support for the urinating machine called Tinubu.

Una Mumu never do... Am talking about those Yoruba Muslims.... Make una use this same energy to vote Peter Obi.

grandstar:


Many thanks for your response. It too was very objective.

What most Nigerians fail to realise is that the subsidy is keeping them impoverished. They fail to realise that it strains the Naira causing it to lose value.

It also creates a massive hole in the budget forcing the government to borrow, crowding out private borrowers. It might be worse now with government borrowing directly from the CBN. This fuels inflation.

Worse,it discourages investment into refining. This is the biggest disservice that the subsidy does to the economy

Had the fuel price been deregulated at far back as 1999, by now, the country should be refining about 2m bpd of crude oil. Dango the refinery alone would employ nothing less than 8,000 engineers. That's excluding other highly skilled staff from other professions. With 2mbpd, that would be at least 30,000 engineers.

The GSM operators were allowed to fix their price and this led to massive investment in the industry which had a transformative effect on the economy. It was a sector that played a prominent role in the re-basing of Nigeria's GDP to $500bn in 2013.

The benefits of deregulated pricing of petrol will far outstrip that of the GSM mobile in the Nigerian economy.