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Petrol Sells For Above N100 Per Liter In Us/uk - Business - Nairaland

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Petrol Sells For Above N100 Per Liter In Us/uk by billante(m): 11:17pm On Sep 25, 2011
(CNN) -- Prices at U.S. gas pumps have dropped 12 cents over the past two weeks, according to a survey published Sunday.
The average price of a gallon of self-serve regular is now $3.54, the Lundberg Survey found. The decline follows the downward slide in crude oil prices over the same period, survey publisher Trilby Lundberg said.
If oil prices don't jump soon, "then we haven't seen the last of the drop," Lundberg said. "We may have a drop of another 10 cents at retail."
The price is still 85 cents higher than it was a year ago, however.
The Lundberg Survey tallies prices at thousands of gas stations nationwide. The latest survey was conducted Friday.
The city with the lowest average price was St. Louis, at $3.08. San Francisco had the highest, at $3.90.
Here are average prices in some other cities:
-Atlanta: $3.39
-Baltimore: $3.46
-Boston: $3.66
-Cleveland: $3.36
-Houston: $3.29
-Salt Lake City: $3.60
-Seattle: $3.85/quote]


http://edition.cnn.com/2011/09/25/us/us-gas-prices/


Why are we then furious when govt wants to remove subsidy when petrol sells that much in US and they are even producing more oil than us also have more refineries than us, i heard its even higher in UK

since these advanced oil producing countries pay higher for petrol/gas why shouldn't we?
Re: Petrol Sells For Above N100 Per Liter In Us/uk by Sunofgod(m): 11:24pm On Sep 25, 2011
GEJ - You are a bloody im.becile . . . . . . go to bed.

(Spewing trash)
Re: Petrol Sells For Above N100 Per Liter In Us/uk by billante(m): 11:37pm On Sep 25, 2011
And Gullible fools like u should stay awake!!
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 11:56pm On Sep 25, 2011
@billante: you are correct.

Nigeria simply is not rich enough a country to fundamentally change the price of fuel for its citizens, even if it were possible to do so w/o large-scale corruption.

Asking to pay less than the market price for fuel makes about as much sense as asking to pay 1/2 the market price for rice, amala, pounded yam, or groundnut.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by billante(m): 12:11am On Sep 26, 2011
ekt_bear:

@billante: you are correct.

Nigeria simply is not rich enough a country to fundamentally change the price of fuel for its citizens, even if it were possible to do so w/o large-scale corruption.

Asking to pay less than the market price for fuel makes about as much sense as asking to pay 1/2 the market price for rice, amala, pounded yam, or groundnut.

You are right on point!!!
Re: Petrol Sells For Above N100 Per Liter In Us/uk by jensinmi(m): 1:10am On Sep 26, 2011
Once again we are exposed to the insensitivities of some who don't seem to understand the problems of Nigeria. Because Americans do this, and Europeans pay that, then why can Nigerians not do the same?

What kind of question is that? Kindly compare the annual income of the average American to that of the average Nigerian and see how many litres of gasoline the average American's annual income will buy. Then compare it with that of Nigeria.

Every time folks like Billante and Ekt_bear come here to say this stuff, I'll reply by reposting my answers from another thread.
Read and be enlightened.



Below is my response to the following thread

Nigeria Spends N72.8bn Monthly On Fuel Subsidy
https://www.nairaland.com/nigeria/topic-746266.0.html#msg9024300


I agree with Kobojunkie and strongly disagree with ekt_bear and friends.


This is all basic mathematics. Anyone who went to school will work out that this fuel subsidy noise is a LIE or at best gross exaggeration.

FIRST OF ALL, ANYONE WHO TELLS YOU THAT NIGERIA SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.

This is basic mathematics and a fact.
They can claim that the give out $500 million in subsidy money monthly. That is between them and their thieving companies and friends.

Let's break it down:

Nigeria produces crude oil. Other countries produce crude oil.
Nigeria has 4 refineries with total installed capacity of 445,000 barrels per day (or whatever the NNPC claims nowadays).
Nigeria's refineries are not working at full capacity.
Crude oil is refined to PMS (Premium Motor Spirit) aka Petrol.
Nigerians use PMS to fuel vehicles, generators and other things.
PMS is traded internationally at a particular rate that varies.
Other countries that produce Crude oil refine it and sell to their citizens at whatever rate they please (irrespective of international rates).
Nigeria monthly PMS consumption = Locally refined + Imported refined (at International Rates)
Nigeria sells PMS to citizens for N65/litre
Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

Example = Importers buy fuel internationally today from Venezuela at N120/ litre for example, they bring into Nigeria and sell for N65/litre. In order for said Importers not to lose N55/litre, the Nigerian Government pays N55/litre balance. This balance is the SUBSIDY.

Problem 1: Due to corruption, Nigerian officials collude with Government officials and claim to have imported more fuel than they actually bring in.

Example: Mr. Otedola's company may only bring in 1 million litres per day but claim to bring in 2 million litres per day. And like in previous example, The Government officials will pay N110 million per day (N 55/litre subisdy x 2 million litres) instead of N55 million (N55/litre subsidy x 1 million litres).

Problem 2: Due to corruption, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to buy the Locally refined and claim that the said quantities of petroleum where in fact imported into the country at international rates.

Example: Ms. Deziani's accomplices may buy 1 million litres per day of petroleum from the NNPC for N65 million and then claim that this quantity was bought at N120 million internationally (N120/litre international rate x 1 million) . They would then proceed to collect N55 million (N120 milion - N65 million) from the Nigerian Government as subsidy payment.

Problem 3:Due to corruption and inadequate monitoring, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to fraudulently under-report the quantities of locally refined PMS so they can purchase the more from the local refineries and claim to have imported said quantities (problem 2)

Example: The NNPC may claim to refine only 2 million litres per day when it in fact refines 4 million litres per day. The remaining 2 million litres would then be sold to their partners in crime at N65/ litre. These partners will proceed to sell these quantities to the Nigerian populace while demanding N55 subsidy per litre from the Nigerian Government after claiming that this 2 million litres/day were imported from Venezuela or other country. This example is highlighted by the inability of the NNPC to give account of the actual quantities it refines daily.


Therefore taking into consideration that

Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

and the extent of problems 1, 2, and 3, it becomes easy to see why the true cost to Nigeria of the fuel subsidy may not exceed $100 -$150 million/ month.

Once again, I put forward that

ANYONE WHO CLAIMS THAT NIGERIA TRULY SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.



Why do Nigerians need a fuel subsidy??

Do average Nigerians really benefit from a fuel subsidy??

Interesting questions. Let me rephrase that.

Do average Nigerians benefit from buying PMS at N65/litre instead of N120, N130, or N140/litre
I think a monkey can answer that.

1. The average Nigerian buys PMS to fuel his/her car i.e N500 daily.
2. The average Nigerian takes public transport in vehicles that use PMS at certain amount i.e N50 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N1000 daily.
4. The average Nigerian buys food (bread, vegetables, fish) which is transported across the country in Vehicles that use fuel.

No subsidy equals

1. The average Nigerian needs PMS worth N1000 for his/her car daily.
2. The average Nigerian takes public transport at a new amount i.e N80 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N2000 daily
4. The average Nigerian buys food (bread, vegetables, fish) at a much higher price.

it doesn't take a genius to figure out that the average Nigerian benefits significantly from the lower cost of PMS.

It would be hard to find a Nigerian in Nigeria who wants the price of PMS to rise. It is a slap in the face of average Nigerians for ekt-bear and friends to claim that removing the subsidy will not have a tremendous negative impact on Nigerians. It is easy to sit in the U.S.A and claim that doubling the price of PMS in Nigeria will have no impact on the populace. Akin to saying an increase in gasoline prices in the U.S.A to $7/gallon today will have no significant effect on the populace.

Does corruption allow unscrupulous individuals to benefit from the subsidization of PMS?? Yes.
But why does the average Nigerian have to get shafted for this?? Why not tackle corruption instead??

Solutions.

A. Ascertain the true quantities of PMS locally produced daily.
B. Ascertain the true total quantities of PMS consumed daily nationwide.

Subract A from B and arrive at the true quantity of PMS imported at international rates (This value will then be subsidized)

By tackling corruption, the cost of subsidization can be brought down to no more than $100 million per month.


Solution Part 2 - By bringing refineries to optimum operating capacity and building new refineries.
Locally refined PMS can exceed Locally consumed PMS.

Mythical Solution= Remove the subsidy and hope that the supposed $500 million/ month that is currently being used to compensate corrupt entities will translate into development and improvement for the average Nigerian.

The question now remains, does increasing the burden on the average Nigerian guarantee the resolution of the problem??


PS: Problem 4: Overestimating the total nationwide PMS consumption allows fuel importers and the NNPC to further perpetrate fraud.


Also, please note that selling locally refined PMS at N65/litre is still a profitable venture for the NNPC.



Thank you for reading.

Re: Petrol Sells For Above N100 Per Liter In Us/uk by billante(m): 1:40am On Sep 26, 2011
@jensinmi all wat you wrote on your very long and repeative thread is dat corruption is d problem! dat nigeria is not consuming d amount of petrol being declared by the corrupt politicians, dat if the right quantity is declared subsidy wont be necessary?

i have one or two questions: Uk , US and other corruption free countries that are transparent! why is their pump price still high


Since we are willing to pay high prices and get regular supply of electricity and didnt mind paying high tariff charges for telecommunication before competition which is also needed in d downstream sector crashed d prices and is now being enjoyed by all,

I think we should deregulated cause your argument is out of fashion!!!!
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 2:44am On Sep 26, 2011
You are usually on point @jensinmi, but in this you are wrong.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ghostofsparta(m): 4:22am On Sep 26, 2011
@bellante
Must Jensinmi know why the pump price is high in UK and US? Even if he gave an answer to such silly question, you will still ask why do they experience fuel scarcity in UAE? Jensimi gave us an intel by analyzing how the Nigerian oil sector is been manipulated by some goons. In order to mask your daftness because you couldn't grasp jensimi's analyses you decided to write some unintelligible reply when you wrote:

''Since we are willing to pay high prices and get regular supply of electricity and didnt mind paying high tariff charges for telecommunication before
competition which is also
needed in d downstream sector crashed d prices and is now being enjoyed by all. . .I think we should deregulated'

you wrote all that pointless words just to let Jensimi know that his argument is

''out of fashion!!!!''

@ekt_bear
How is jensimi wrong? I'm sure you must have a better explanation regarding the issue, let's hear.

@jensimi
Your analyses makes perfect sense. Can you please provide some elaborate analyses explaining why Nigerian roads and streets are horribly bad, is it the fault of foreign contractors such as Julius Berger, Arab contractor, etc? or is it the local govenment chairmans, FG or state government? Also why are things ridiculously expensive in Nigeria? Is it because the number of importation far exceed that of exportation? Why is the Naira weak and valueless, i.e. low purchasing power? And lastly why can't they be a stable and steady electricity supply in this British amalgamation called Nigeria? Thanks.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 4:36am On Sep 26, 2011
^-- Hrm. Since @jensinmi gets to c/p his old post, why don't I just link to the old thread where this was discussed:

https://www.nairaland.com/nigeria/topic-665393.0.html

Pardon my laziness, but I actually have something due in a few days I'm working on. I can respond more thoroughly later in the week if you like.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by dayokanu(m): 4:48am On Sep 26, 2011
People can only buy commodoties wit the money they earn.

So what is the minimum wage in Nigeria compared to the US or UK

Does it make sense to expect someone whose minimum wage is $1.50 per hour to pay the same price as someone with $7/hr minimum wage?

OP or Dapo can you answer that?
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 4:51am On Sep 26, 2011
^--  Price of bread in Nigeria is probably similar to to the price say in the US.

Same with rice and meat.

Why doesn't the government subsidize bread, rice and beef in Nigeria, using this reasoning of yours?

I have a 2006 Macbook Pro which I'm looking to replace, I want to upgrade to the 2011 Macbook Pro. Can the Nigerian government subsidize that too?

Things cost what they cost. Bread, rice, beef, mac books, doesn't just become cheaper just because you live in a poor country.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by dayokanu(m): 5:01am On Sep 26, 2011
Price of bread in Nigeria is not similar to price of bread in the US.

No price is similar in both countries.

Bread is about $1.50 in US, Are you saying the cheapest bread is N220 in Nigeria.

People can only spend what they earn.

I was making like N250k per month in Nigeria working in a Multinational company and was considered one of the top earners in the society for my age range then, That would be around $1,700 per month.

My colleagues in the US earned about 3 times more working for the same company .

You cant price commodities beyond the spending power of consumers

You cant expect someone who earns $1.50 per hour to buy for a similar price as someone who earns $7.50.

Things are actually cheaper if you live in a poor community.

An escort in Manhattan would collect $500 in Thailand you can screw a whole village with that amount
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 5:12am On Sep 26, 2011
You can get very cheap bread in the US for a price comparable to that which you get in Nigeria.

The things that are cheaper in Nigeria are only those things that are very labor intensive. Everything else is comparable pricewise.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 5:14am On Sep 26, 2011
Yes, escorts, manual labor, etc is going to be cheaper in Nigeria.

But anything where the price of labor isn't a major factor will be about the same (or more expensive in naija)

So why is an oil subsidy sensible, but a groundnut/amala/rice/iPhone subsidy not? That really is my question for you, DK
Re: Petrol Sells For Above N100 Per Liter In Us/uk by dayokanu(m): 5:31am On Sep 26, 2011
The cost of the cheapest bread in Nigeria might be like N25.

Can you tell me where you can get bread for $0.15 in the US?

A plate of Amala in the US goes for at least $12-$15 While the same plate of Amala in Nigeria would go for less than $5.

iphone cant be cheaper because its not produced in Nigeria.

Selling oil for the same price as they sell for in US would only make sense if the purchasing power in Nigeria is similar to the US

People buy with money they make, So where do you expect them to get money to buy from?
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 5:41am On Sep 26, 2011
dayokanu:

The cost of the cheapest bread in Nigeria might be like N25.

Can you tell me where you can get bread for $0.15 in the US?
It cannot be the same loaf of bread selling for N25. Even the cost of the wheat to make that loaf costs more than that. I don't think you are comparing the same quantities of bread.


A plate of Amala in the US goes for at least $12-$15 While the same plate of Amala in Nigeria would go for less than $5.
Labor intensive food to make. Labor in US costs more.


iphone cant be cheaper because its not produced in Nigeria.
Aha!

So is the refined oil which is being subsidized produced in Nigeria? No, it is not. . . most is imported, very little locally produced. So why is it being sold for less than it costs to import it?


Selling oil for the same price as they sell for in US would only make sense if the purchasing power in Nigeria is similar to the US
How about things should just be sold for whatever the market price is?


People buy with money they make, So where do you expect them to get money to buy from?
Let me answer your question with the same question I've asked repeatedly. Why doesn't the government subsidize meat too? Or iPhones? Or groundnut? Or Toyota Corollas? Pr0stitutes? Why is an oil subsidy any more worthy than subsidizing these other things?
Re: Petrol Sells For Above N100 Per Liter In Us/uk by hercules07: 5:42am On Sep 26, 2011
@dayo

What the capitalists like ekt do not understand is that there is no safety net in Nigeria and the money to be saved from subsidy removal will not be used for anything meaningful, what has the government done with the little they earn now, do you know that our oil receipts can not pay for the running of our government, let GEJ trim the fats, give us good roads, electricity and so on, if Buhari could do it with PTF money, what is stopping GEJ.
You entrust things to people gradually, I am sure if you have a subordinate, you do not give him all the responsibilities until he can demonstrate that he can manage the ones he has at present.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by dayokanu(m): 5:49am On Sep 26, 2011
Dapo, Iphone is not a necesity, Oil is a necesity.

Assuming a particular vaccine that every American needs to take daily comes mainly from China and its very expensive, Would the US govt leave it to market forces to dictate?

Crude oil is local to Nigeria, Refined oil can be made in Nigeria So why pay the same amount as countries who dont have it locally?

I bet vodka would be cheaper in Russia than in US, Just like Amala would be cheaper in Nigeria than in Siberia.

IF YOU WANT NIGERIANS TO PAY EQUAL AMOUNT AS AMERICANS THEN PAY THEM AS MUCH AS AMERICANS
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 6:01am On Sep 26, 2011
dayokanu:

Dapo, Iphone is not a necesity, Oil is a necesity.
So Nigerians could not afford oil w/o the subsidy? Do you have evidence of this? How much oil does your typical Nigerian consume per year? Is he spending 40% or 50% of his budget on oil?

BTW, given that most of the subsidy is stolen away and your typical Nigerian sees very little of the subsidy, how is he surviving now if the oil is too expensive?


Assuming a particular vaccine that every American needs to take daily comes mainly from China and its very expensive, Would the US govt leave it to market forces to dictate?
Where would the US government get the money for the subsidy? Through additional taxation, right? The subsiidy would only distort the market. I doubt the US government would subsidize it, except for the very poor perhaps.

Unlikely to be a blanket subsidy.



Crude oil is local to Nigeria, Refined oil can be made in Nigeria So why pay the same amount as countries who dont have it locally?
Why not just pay market prices? Even if there is oil refined in Nigeria, who would want to sell the refined oil in Nigeria if they can make double the money selling it elsewhere?

Never in life do you gain something for nothing.


I bet vodka would be cheaper in Russia than in US, Just like Amala would be cheaper in Nigeria than in Siberia.
IF YOU WANT NIGERIANS TO PAY EQUAL AMOUNT AS AMERICANS THEN PAY THEM AS MUCH AS AMERICANS
I wish this worked for iPhones, meat, cars, computers, home furnishings, etc. All of which Nigerians pay roughly the same price (or more!) than Americans.

The government should subsidize meat, computer, cement, potato, pounded yam, rice, gari, palm wine, etc. 100% of the budget spent on recurrent expenditure. Just purely on subsidies.

In fact everything should be free. Where the money will come from, only God knows.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by efisher(m): 6:05am On Sep 26, 2011
USA is too far. Try Ghana or Cameroon. Subsidy is equal to waste.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by Nobody: 6:08am On Sep 26, 2011
what dapo completely fails to understand is that REMOVAL OF THE SUBSIDY WILL NOT CHANGE ANYTHING.

there is absolutely no sincerity on the part of the government

there was a time when fuel was n11 per litre - toay at n65 per litre, there is stiill no change, other than the fact that transport fares and associated prices have all gone up.

all the talk about selling the refineries - the obj govt tried to sell warri or was it ph refinery and then shut it own when it became clear teh winner would not be one of their candidates.

if they had been successful, that company would be as dead as nitel today.

during the obbj years, the price of fuel was raised twice - we had all sorts of ridiculous adverts - people daning and telling about the nirvana that would come from the increase in pump price. nada

all that will happen is some people will make a killing, and business will continue as usual.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 6:10am On Sep 26, 2011
efisher:

USA is too far. Try Ghana or Cameroon. Subsidy is equal to waste.

I used to wonder why Ghana, as small as it is despite not having as many resources as Nigeria manages to keep up.

In hindsight, is it any wonder?

Nigerian FG spends 70% of its budget on recurrent expenditure. Supposedly $4 billion+ year on petrol subsidies, 95% of which is stolen or carted away to Niger Republic.

When you have a country run by people who don't know what they are doing, there shouldn't be any surprise that the country doesn't progress.

I even like the Benin Republic, Niger Republic, Cameroon folks. No oil subsidy in their own country, just smuggle cheap oil from Nigeria!  grin

Benefit from the idiocity of your neighbor, the good for nothing self-proclaimed "Giant of Africa."

Who calls Nigeria the giant of Africa anyway, aside from us Nigerians?

Smh
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 6:13am On Sep 26, 2011
oyb, I get your point.

So is the solution just to give up?

Do what doesn't make sense because we don't have any faith the most probable alternative is any better?

Be happy spending $4 billion+ year on subsidies and have most of it stolen away, thinking that there is nothing better we can do with the money?

It seems a defeatist mentality to think like that imo. Surely there is an answer.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by dayokanu(m): 6:23am On Sep 26, 2011
ekt_bear:

So Nigerians could not afford oil w/o the subsidy? Do you have evidence of this? How much oil does your typical Nigerian consume per year? Is he spending 40% or 50% of his budget on oil?

Every part of our lives is tied to oil, Oil increase, then transportation fares increase, Power generation cost increase cost of food increases, The increase in Oil prices affects everything


BTW, given that most of the subsidy is stolen away and your typical Nigerian sees very little of the subsidy, how is he surviving now if the oil is too expensive?
Where would the US government get the money for the subsidy? Through additional taxation, right? The subsiidy would only distort the market. I doubt the US government would subsidize it, except for the very poor perhaps.

Unlikely to be a blanket subsidy.

By that same American standards, 90% of Nigerians are poor. Minimum wage in US is $7/hr That translates to $1100 per month which is like N180,000. That amount in Nigeria is more than what 80% of fresh graduates earn.


Why not just pay market prices? Even if there is oil refined in Nigeria, who would want to sell the refined oil in Nigeria if they can make double the money selling it elsewhere?

Can we just ask the government to pay the market prices of Minimum wage too? If we are going to pay for commodities prices similar to what Americans pay then we should earn similar to what Americans earn

Never in life do you gain something for nothing.
I wish this worked for iPhones, meat, cars, computers, home furnishings, etc. All of which Nigerians pay roughly the same price (or more!) than Americans.

Meat, Home furnishing are cheaper in Nigeria than in the US. cars , iphones computers, we dont produce and are not really essentials of life.

The government should subsidize meat, computer, cement, potato, pounded yam, rice, gari, palm wine, etc. 100% of the budget spent on recurrent expenditure. Just purely on subsidies.

Subsidies are everywhere in the world


The United States currently pays around $20 billion per year to farmers in direct subsidies as "farm income stabilization"[9][10][11] via U.S. farm bills.

http://en.wikipedia.org/wiki/Agricultural_subsidy#United_States
Re: Petrol Sells For Above N100 Per Liter In Us/uk by Nobody: 6:40am On Sep 26, 2011
ekt_bear:

oyb, I get your point.

So is the solution just to give up?

Do what doesn't make sense because we don't have any faith the most probable alternative is any better?

Be happy spending $4 billion+ year on subsidies and have most of it stolen away, thinking that there is nothing better we can do with the money?

It seems a defeatist mentality to think like that imo. Surely there is an answer.

we had our chance in april and we botched it. the only thing that can lead to change is a leader who will take on the cartels and oligarchs.

outside of that, it will just be business as usual.

you can dislike NLC, but we know where they are coming from. as i stated, i saw at least two fuel price hikes. in a country like nigeria - first thing that happens cost of transport goes up. then the multiplier - foodstuffs, business center costs , running your petrol gen, school fees - everyone raises their price and the consumer gets shafted.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 6:46am On Sep 26, 2011
@dk: A $14 trillion economy spending $20 billion/year in subsidies versus a $200 billion economy spending $4 billion/year?

In one case, a rounding error. In the other, a substantial portion of GDP.

I don't understand how the situations are comparable.

Beef I don't think is cheaper in naija than the US. I can buy ground beef from the grocery store for $2.30/pound. . . $5 us/kg = N750/kg.

How much is the same quantity of ground beef (i.e., pure meat, not bones, gristle, etc which you'll have to pay your cook to process) in Nigeria?

If it is cheaper, it isn't going to be substantially cheaper.

Regarding home furnishings, no, it isn't cheaper. For all the nice new developments in Abuja for example, the furnishings are imported from China rather than produced locally. So I can go down to Home Depot or whatever and buy whatever you are buying imported from China more cheaply.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 6:50am On Sep 26, 2011
dayokanu:

Can we just ask the government to pay the market prices of Minimum wage too? If we are going to pay for commodities prices similar to what Americans pay then we should earn similar to what Americans earn

Err. If the government interferes in the market (e.g. by setting a minimum wage, or setting it to American minimum wage), then by definition market prices aren't being paid, right?

I don't understand the point of this statement.

In a nutshell, there is only so much interference a gov't can do before it screws up everything completely. In general, the more gov't interference the worse.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by Nobody: 6:55am On Sep 26, 2011
all that will happen in naija with this increase is an even greater gap between the rich and poor and a shrinking middle class. i can cope- it will be a biatch, but fortunately, something good actually seems to be coming out of the gej administration, at least in lagos - we have much better power. if i had a proper inverter, i'd be spending close to zero on fuel for my gen.

while i can several peoples standard of living will drop even further. this is the 70% plus nigerians who by American standards are already below the poverty level
Re: Petrol Sells For Above N100 Per Liter In Us/uk by ektbear: 7:01am On Sep 26, 2011
The prices are so bad for home furnishings in Abuja that I have in fact bought them here and shipped them to my dad.

Same with tires.

So cheaper for my dad to have me ship him an extra tire for his car than for him to buy one locally.

Go visit the markets yourself, write down the prices. Then email someone in the US, ask them to find the exact same item at Home Depot for you and compare the price.

See if it isn't cheaper to buy the tire or almost anything else that isn't labor intensive in the US than Nigeria.

The supply chains from China -> US are excellent I guess. . . you have huge companies like Walmart who have refined importing down to a science.

Supply chain from China-> Nigeria, isn't very good, it appears. So anything imported is going to be more expensive.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by Nobody: 7:19am On Sep 26, 2011
ekt_bear:

The prices are so bad for home furnishings in Abuja that I have in fact bought them here and shipped them to my dad.

Same with tires.

So cheaper for my dad to have me ship him an extra tire for his car than for him to buy one locally.

Go visit the markets yourself, write down the prices. Then email someone in the US, ask them to find the exact same item at Home Depot for you and compare the price.

See if it isn't cheaper to buy the tire or almost anything else that isn't labor intensive in the US than Nigeria.

The supply chains from China -> US are excellent I guess. . . you have huge companies like Walmart who have refined importing down to a science.

Supply chain from China-> Nigeria, isn't very good, it appears. So anything imported is going to be more expensive.

there is a second reason why prices are so high - its abuja - the same abuja that some lawmakers say must not have low cots housing so that its status will not fall. its the same reason for the prices of housing. corruption. there is far too much ill gotten wealth in abuja.

alos, its not about supply chain, its about greed and keeping up with the big boy who is a politician and fat on govt patronage - nigerans have no qualms about selling accidented cars at a premium, or selling laptops at 200% markups.
Re: Petrol Sells For Above N100 Per Liter In Us/uk by jensinmi(m): 8:30am On Sep 26, 2011
ghostofsparta:

@bellante
Must Jensinmi know why the pump price is high in UK and US? Even if he gave an answer to such silly question, you will still ask why do they experience fuel scarcity in UAE? Jensimi gave us an intel by analyzing how the Nigerian oil sector is been manipulated by some goons. In order to mask your daftness because you couldn't grasp jensimi's analyses you decided to write some unintelligible reply when you wrote:

''Since we are willing to pay high prices and get regular supply of electricity and didnt mind paying high tariff charges for telecommunication before
competition which is also
needed in d downstream sector crashed d prices and is now being enjoyed by all. . .I think we should deregulated'

you wrote all that pointless words just to let Jensimi know that his argument is

''out of fashion!!!!''

@ekt_bear
How is jensimi wrong? I'm sure you must have a better explanation regarding the issue, let's hear.

@jensimi
Your analyses makes perfect sense. Can you please provide some elaborate analyses explaining why Nigerian roads and streets are horribly bad, is it the fault of foreign contractors such as Julius Berger, Arab contractor, etc? or is it the local govenment chairmans, FG or state government? Also why are things ridiculously expensive in Nigeria? Is it because the number of importation far exceed that of exportation? Why is the Naira weak and valueless, i.e. low purchasing power? And lastly why can't they be a stable and steady electricity supply in this British amalgamation called Nigeria? Thanks.s perfect sense. Can you please provide some elaborate analyses explaining why Nigerian roads and streets are horribly bad, is it the fault of foreign contractors such as Julius Berger, Arab contractor, etc? or is it the local govenment chairmans, FG or state government? Also why are things ridiculously expensive in Nigeria? Is it because the number of importation far exceed that of exportation? Why is the Naira weak and valueless, i.e. low purchasing power? And lastly why can't they be a stable and steady electricity supply in this British amalgamation called Nigeria? Thanks.

Thanks sir. I will certainly begin working on those topics.


dayokanu:


An escort in Manhattan would collect $500 in Thailand you can screw a whole village with that amount

shocked shocked shocked shocked shocked shocked shocked shocked shocked  grin grin wink kiss

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