Infact, in my area is #750/liter this morning..... Nigeria is moving up

bigpicture001:


no b propaganda..my area na 400 now..just this evening

airsaylongcome:


So I do a bit of buying and selling and I will explain something. Assume I always buy 100 units of an item for resale. And I have sold say 20 items and I hear that my purchase price for those items has gone up, it is only rational that I automatically increase my sales price so that when I go back to purchase, I can still purchase 100. If I don’t tweak my sales price, when I go back to buy, I may only be able to buy 60 units and will already be at a disadvantage as my business will contract from lower sales. It’s pure business fam. It’s not necessarily about making “big profit”. It’s about staying in business

That is not really the way to see it.
The purchasing price will remain the same. The selling price to consumers will increase as it is no longer subsidized. Importers will continue importing at the same price but will sell at their choice price starting from July.
Example.
I buy fuel for 1k per litre from US(including importing dues. Government pays me 850 for every litre. I then sell around 180-200 which is the government price per litre officially to citizens. Subsidy removal doesn't affect their purchasing power but their selling price starting from day the Subsidy stops.


Your analogy makes sense when Subsidy has been removed and the can move their prices according to the movement of the global petrol market




NB:The month of June is still covered by Subsidy and the money will be paid so it is not necessary to increase price of a subsidized goods now. Government bodies will deal with them

Nostradamus1:


I buy fuel for 1k per litre from US(including importing dues. Government pays me 850 for every litre. I then sell around 180-200 which is the government price per litre officially to citizens. Subsidy removal doesn't affect their purchasing power but their selling price starting from day the Subsidy stops.

So (and this is a legit question) does the government pay subsidy before the products are sold to the final consumers? Or after?

Tflex01:


Let the six million Obidients do their worse. Their Messiah will never be President of United Nigeria. Let Nigeria break first so he can rule Biafra and the few brainwashed non igbo Obidients can relocate there with him.

Have u saved up for fuel increase and high commodity prices that will follow? I hope you know say market sellers dont care if you are a Chinedu or BAT voter? All man must suffer and pay.

Japa007:

We are talking of meaningful towns, you're calling that slum in ondo.

One yeye @Timmi wrote yesterday that everything is normal in SW.

Now closing down every station in Owo is normal to those deceitful souls that believe in their own lies.

I called Nigeria about some minutes ago, from Abijo to Abraham Adesina only one station is selling. NNPC close to Abijo is not selling but the queue in anticipation blocked the road. Workers are tracking to work.

That is what one yeye @Timmi called normal.

Omo..I just saw this now, N600 per liter.

UptownVibes:
From Sai Baba to Emilokon
Who swear for Nigeria?

Abi

hardbars:
week 1 day 1 you are already asking how much is fuel in someones area? vote with sense you say no. una never see anything

You can say that again!

Felabrity:
Tinubu supporters are buying it at 70 naira pee litre

🤣🤣🤣🤣🤣

Allisgud:
Since buhari has indirectly said Nigerians are more stubborn than his cows, tinubu want to teach him he will handle is🤣🤣🤣

🤣🤣🤣🤣🤣🤣

BigIyanga:

Have u saved up for fuel increase and high commodity prices that will follow? I hope you say sellers dont care if you are a Chinedu or BAT voter? All man must suffer and pay.

At least I'm happy that it is the man you hate so much that is making you suffer. Don't worry about me I will be fine.

Nostradamus1:
That is not really the way to see it.
The purchasing price will remain the same. The selling price to consumers will increase as it is no longer subsidized. Importers will continue importing at the same price but will sell at their choice price starting from July.

So I don't agree that "the purchasing price will be the same". And here's why. Importers have always purchased at say ₦1k/litre you mentioned. Retailers have purchased at a lower price from the retailers, with government paying the differential. So with removal of "under recovery", retailers will buy at say ₦1,100. From say ₦170. So a retailer that bought say 100L, and sold only 20L, will increase his selling price of the remaining 80L so that he can buy as close to 100L and keep his business competitive. The retailers purchase price from the importers will go up which he will pass on to the consumer. It's classic buying and selling. Buy low, sell high. Buy high, sell higher or highest.

The real problem here is the fact that the reason Nigerians buy petrol a lot hasn't been resolved. And that is absence of public power. A substantial proportion of petrol consumed is to power generators. And to be honest, I don't see this regime solving the power issue. The economic situation of the country is going to get considerably worse in the next 8 years. And this isn't me being pro or anti the new regime. It's a glaring fact. Prices are going to skyrocket without a commensurate improvement in consumers income. Sad reality

Ogunleti01:
Crude oil has always been sold at international price to the foreign refineries plus the shipping cost (exportation of crude oil and importation of refined crude)a nd the rest. Are you now telling me that refining locally would not save us enough forex from the bottleneck arising from the transportation of our crude oversea and the importation of the refined products?

off course it will but that does not mean we would be getting d fuel relatively cheaper. Obviously even at that I envisage the price to be between 300-500. How many persons can possibly afford this?

Saintinoo:


Simple demand and supply law states that the higher the supply the lower the price. Biggest refinery? Dangote refinery has the capacity to refine 600,000 barrels and that is even on paper.

Stop taking Nigeria newspapers serious, if fuel prices should go down, then there should be more than 5 private refineries, the competition will bring down price. Dangote refi very will not serve and even if it does, price will go up because he will run as a monopoly.

He wants to monopolize it.. That's the game plan .. We already know their plans

airsaylongcome:


So (and this is a legit question) does the government pay subsidy before the products are sold to the final consumers? Or after?

Before. It is paid most times before it reaches retailers

airsaylongcome:


So I don't agree that "the purchasing price will be the same". And here's why. Importers have always purchased at say ₦1k/litre you mentioned. Retailers have purchased at a lower price from the retailers, with government paying the differential. So with removal of "under recovery", retailers will buy at say ₦1,100. From say ₦170. So a retailer that bought say 100L, and sold only 20L, will increase is selling price of the remaining 80L so that he can buy as close to 100L so that his business stays competitive. The retailers purchase price from the importers will go up which he will pass on to the consumer. It's classic buying and selling. Buy low, sell high. Buy high, sell higher or highest.

The real problem here is the fact that the reason Nigerians buy petrol a lot hasn't been resolved. And that is absence of public power. A substantial proportion of petrol consumed is to power generators. And to be honest, I don't see this regime solving the power issue. The economic situation of the country is going to get considerably worse in the next 8 years. And this isn't me being pro or anti the new regime. It's a glaring fact. Prices are going to skyrocket without a commensurate improvement in consumers income. Sad reality

Your submission makes sense. I haven't considered this angle. I keep viewing it from the lens of the big marketers and importers


It is left for government agencies to pressure this retailers to sell at the accurate price till June ending since they bought it at low price. A lot of petrol station should invest more moneynd not artificially raise price. They can simplya close their station till next month

Nostradamus1:
Before. It is paid most times before it reaches retailers

Living daylight madness. Which further explains why the powers-that-be that harvest from that subsidy racket will never allow it succeed. We are doomed in this country

Nostradamus1:
Your submission makes sense. I haven't considered this angle. I keep viewing it from the lens of the big marketers and importers


It is left for government agencies to pressure this retailers to sell at the accurate price till June ending since they bought it at low price. A lot of petrol station should invest more moneynd not artificially raise price. They can simplya close their station till next month

So you are absolutely spot on that petrol station owners should inject more capital to buy at a higher price. But that's a big risk in business. They could buy stock at higher price and not sell. Agreed the demand of petrol is inelastic and people will still buy the same quantity irrespective of price of they need to continue being productive today as they were in the past. But what happens is that with increased cost and no matching increase in revenue, people will just reduce their productivity. So a barber that used to be open for say 12 hours, may decide to remain open for 6 hours because he cannot afford to increase his "production" cost. Lower revenue, lower productivity ultimately means poorer people.

And good to see that you thought through my points to ultimately agree with it. A lot of people on NL often read other people's submissions with the sole aim of countering.

airsaylongcome:


So you are absolutely spot on that petrol station owners should inject more capital to buy at a higher price. But that's a big risk in business. They could buy stock at higher price and not sell. Agreed the demand of petrol is inelastic and people will still buy the same quantity irrespective of price of they need to continue being productive today as they were in the past. But what happens is that with increased cost and no matching increase in revenue, people will just reduce their productivity. So a barber that used to be open for say 12 hours, may decide to remain open for 6 hours because he cannot afford to increase his "production" cost. Lower revenue, lower productivity ultimately means poorer people.

And good to see that you thought through my points to ultimately agree with it. A lot of people on NL often read other people's submissions with the sole aim of countering.

At the bolded, there is a slight hope. Tinubu mentioned in his inaugural speech about the formation of commodity boards. This is very important and highly needed to control PMAN(They are a cabal of their own) . It is also a very difficult thing to create and manage effectively.


In the long run, we can do better analysis after this potential experience. For now, there should be a huge leeway in budget by families/businesses for petroleum products. We can survive it when the price is low(we did in this tenure) and can be crushed by it when prices skyrocket. It also means Nigerians will become more aware of global wahala.😂

Nazgul:
During fuel importation we were buying fuel at most N170 per liter.

What was subsidy per litre at the time?

Mokwa local government Area of Niger state only shafa selling for #210 other stations remain closed.
Shafa simply the best

hardbars:
week 1 day 1 you are already asking how much is fuel in someones area? vote with sense you say no. una never see anything

Peter Obi and Atiku all agreed subsidy must go. So whichever one of them was sworn in, the status quo will be the same. As a matter of fact, Buhari's regime already removed subsidy from the end of May. So the money to pay for subsidy was not in June's budget and henceforth. The whole high price now and hoarding is from our people who want to over gain. Filling Stations who bought the fuel when it was 156 or 160 want to wait and sell for 600 or 700.

kardinalz:


So if the three candidates supported subsidy removal then he shouldn't put plans in place to cushion any possible effect? Day one he came with such announcement... It's pathetic how some of you think....
Go out and see for yourself what's happening now in fueling stations and the current price..

That shows that the problem of Nigeria isn't government, but wicked masses.
Did the president mentioned the date of subsidy removal?

#500 in Owerri

airsaylongcome:


I sure say if I meet you in person I go burn you, your entire family and village

post your location with a piece of paaper and write satanist. If your dead body to spam front page, ma know why

Satanistx:
post your location with a piece of paaper and write satanist. If your dead body to spam front page, ma know why

I swear if you no do as you talk you go hate yourself.

As a prophet, I don't buy fuel. My members give it to me for free.

This I have seen.

airsaylongcome:


I swear if you no do as you talk you go hate yourself.

I dey fear . Abeg you wey get mind try am ma butcher you like chicken put for crime section

Here in blokosbidi fuel is still 200.