*Fuel Subsidy: Making Sense of the Real Enemy*

Many people do not understand the politics behind fuel subsidy and its dangers to the development and growth of Nigeria.

The intention of the government to subsidise petrol was simply to make the product affordable for Nigerians and make life easier. So, the average price of petrol in the world can be as high as N590, however, the Nigerian Government will subsidise the product and fix price at N185 bringing total amount of subsidy per litre to N405.

The average consumption of litres of petrol in Nigeria per day is 60 million litres. However, Marketers of the product loads as much as 100 million litres and above per day.

This means the Nigerian Government is expected to pay as much as N405 × 100,000,000 (litres) as subsidy per day to the Marketers of the product to keep prices at N185 for instance. This brings the amounts to N40.5 billion daily and about N1.2 trillion monthly. Kindly take note that this amount can either decrease or increase following prices of petrol at the international market.

So, just try to wrap your head around it and know what Nigeria expends on fuel subsidy alone in a year - obviously some billions of dollars.

Here's the irony of whole arrangement

1. Petroleum Marketers (major petrol dealers with tank farms) usually divert larger quantity of the subsidised petrol to neighbouring countries to resell at the international market price. So, they make same amount of money the Nigerian Government has paid on the subsidised petrol at the neighbouring countries.

2. This makes the product relatively scarce in Nigeria as the left over becomes lower than the daily consumption in the country. The implication is that petrol stations will be selling fairly higher than the fixed price of N185 (some sells N190, N205, N225, N250 and so on depending on the area). And during peak periods of scarcity, which are also engineered by the marketers, Nigerians still buy same subsidised petrol for as high as N400, N500 and even N800 as the case was in first quarter of this year while sleeping in filling stations. Again, marketers make double.

3. Marketers also import above the daily consumption of 60 million litres as seen above and still force the federal government to pay subsidy on the excesses, which are usually part of what they smuggle to neighbouring countries. Again, marketers dupe Nigeria.

4. This entire scenario makes a mess of the good intention of the Nigerian government to make petrol affordable for Nigerians.

5. This scarcity and high cost of the product despite subsidy leads to arbitrar increase in the cost of living. Transportation for instance, goes up crazily.

Moves to Remove Subsidy & Reactions

Therefore, successive federal governments having seen the outright abuse of the subsidy policy have always tried to cancel the policy so that market forces can determine the cost of petrol.

More so, the huge amount of money paid into the pockets of Marketers can be channeled to other meaningful venture such as infrastructural development, agriculture, social security, technology, health, etc.

However, whenever the move to remove subsidy is made, the Marketers are quick to shutdown their filling stations and deprive Nigerians access to the already subsidised fuel in their possession. This leads to instant scarcity regime and hardship (like we are already witnessing).

And while the marketers make more money on one hand, they force and instigate Nigerians against the federal government with the hardship created on the other hand.

Then, the innocent Nigerians who do not understand the politics behind subsidy go on strike, protest, attack the government and force her to continue the subsidy regime. We pay more for our ignorance at the long run.

The marketers are happy; they remain the top billionaires in Africa. Everyone loves them, wish to be like them, and celebrate them. Whereas the federal government count her losses, takes the insults, bears the bad name and pity uninformed/suffering Nigerians like you and me.

Will you support Tinubu to break this cartel, this subsidy syndicate and give us freedom or you will remain adamant and spread the hate?

That is the game by the Fuel Cabals against gullible Nigerians. Be wise and support Government.


#copied

Labour must compell the government to buy buses. Don't let us deceive ourselves the poor is not benefiting from this subsidy. I think the only people that should be getting subsidy are the state buses that we don't have and should have.

slimfit1:
Labour must compell the government to buy buses. Don't let us deceive ourselves the poor is not benefiting from this subsidy. I think the only people that should be getting subsidy are the state buses that we don't have and should have.

The thing is, subsidizing fuel for only nigeria is good! But the issue is were subsidizing for other countries!

Smugglers are also using the medium to smuggle subsidized fuel to other countries for sale! They took advantage of the fact that government is subsidizing fuel for Nigeria!

Tinubu said days ago that we can't keep subsidizing fuel for other countries.

So my take is:
Let the subsidy stay gone forever! Then after sometime, re-introduce another method of subsidizing for Nigeria only! It has to come with strict measures!

GeneralPula:

The thing is, subsidizing fuel for only nigeria is good! But the issue is were subsidizing for other countries!

Smugglers are also using the medium to smuggle subsidized fuel to other countries for sale! They took advantage of the fact that government is subsidizing fuel for Nigeria!

Tinubu said days ago that we can't keep subsidizing fuel for other countries.

So my take is:
Let the subsidy stay gone forever! Then after sometime, re-introduce another method of subsidizing for Nigeria only! It has to come with strict measures!

I'd like Tinubu to make Buba Marwa Minister of petroleum!

The poor don't benefit from subsidy? You're not wise at all. All commodity in the whole world use transport system. Before a particular commodity gets to the final consumer, be it poor or rich, it must get to be conveyed by a transit system. Which means, cost of transportation isn't cheap and it forms part of cost of production. If the prices of fuel rises, cost of production increases due to movements of raw materials to the companies and the final goods to their users, motorists will increase money charged on commodities to their shops or homes. By so doing, there'd be high cost of living especially if govt still dish out same salary structure. The goods increases from the producers of the raw materials, companies, and the wholesalers and retailers likewise increase prices as a result of increase in fuel and cost of production. So those poor people you mentioned would now buy at a higher price than the previous price. The question is: If the flow of money in is constant and money out is higher afterwards, what becomes their life?

slimfit1:
Labour must compell the government to buy buses. Don't let us deceive ourselves the poor is not benefiting from this subsidy. I think the only people that should be getting subsidy are the state buses that we don't have and should have.

Seconded!
They government should use part of the income reserved from subsidy to provide this buses across the states.

jayworld15:


The poor don't benefit from subsidy? You're not wise at all. All commodity in the whole world use transport system. Before a particular commodity gets to the final consumer, be it poor or rich, it must get to be conveyed by a transit system. Which means, cost of transportation isn't cheap and it forms part of cost of production. If the prices of fuel rises, cost of production increases due to movements of raw materials to the companies and the final goods to their users, motorists will increase money charged on commodities to their shops or homes. By so doing, there'd be high cost of living especially if govt still dish out same salary structure. The goods increases from the producers of the raw materials, companies, and the wholesalers and retailers likewise increase prices as a result of increase in fuel and cost of production. So those poor people you mentioned would now buy at a higher price than the previous price. The question is: If the flow of money in is constant and money out is higher afterwards, what becomes their life?

I don't really get this your analysis 🤔

slimfit1:
Labour must compell the government to buy buses. Don't let us deceive ourselves the poor is not benefiting from this subsidy. I think the only people that should be getting subsidy are the state buses that we don't have and should have.

The poor ones are suffering needlessly. I just feel like departing this life now

We understand you better but the government should have put things in place to help out

Federal Government knows those who divert fuel and where they divert it to.

Ismael97:



The poor ones are suffering needlessly. I just feel like departing this life now

Please don't!

Don't despair over high prices of things, rather put your trust in ALLAH the Provider the All Mighty.

fyzaila:


Please don't!

Don't despair over high prices of things, rather put your trust in ALLAH the Provider the All Mighty.

Ok. Thanks. Pls check ur DM

fyzaila:
*Fuel Subsidy: Making Sense of the Real Enemy*

Many people do not understand the politics behind fuel subsidy and its dangers to the development and growth of Nigeria.

The intention of the government to subsidise petrol was simply to make the product affordable for Nigerians and make life easier. So, the average price of petrol in the world can be as high as N590, however, the Nigerian Government will subsidise the product and fix price at N185 bringing total amount of subsidy per litre to N405.

The average consumption of litres of petrol in Nigeria per day is 60 million litres. However, Marketers of the product loads as much as 100 million litres and above per day.

This means the Nigerian Government is expected to pay as much as N405 × 100,000,000 (litres) as subsidy per day to the Marketers of the product to keep prices at N185 for instance. This brings the amounts to N40.5 billion daily and about N1.2 trillion monthly. Kindly take note that this amount can either decrease or increase following prices of petrol at the international market.

So, just try to wrap your head around it and know what Nigeria expends on fuel subsidy alone in a year - obviously some billions of dollars.

Here's the irony of whole arrangement

1. Petroleum Marketers (major petrol dealers with tank farms) usually divert larger quantity of the subsidised petrol to neighbouring countries to resell at the international market price. So, they make same amount of money the Nigerian Government has paid on the subsidised petrol at the neighbouring countries.

2. This makes the product relatively scarce in Nigeria as the left over becomes lower than the daily consumption in the country. The implication is that petrol stations will be selling fairly higher than the fixed price of N185 (some sells N190, N205, N225, N250 and so on depending on the area). And during peak periods of scarcity, which are also engineered by the marketers, Nigerians still buy same subsidised petrol for as high as N400, N500 and even N800 as the case was in first quarter of this year while sleeping in filling stations. Again, marketers make double.

3. Marketers also import above the daily consumption of 60 million litres as seen above and still force the federal government to pay subsidy on the excesses, which are usually part of what they smuggle to neighbouring countries. Again, marketers dupe Nigeria.

4. This entire scenario makes a mess of the good intention of the Nigerian government to make petrol affordable for Nigerians.

5. This scarcity and high cost of the product despite subsidy leads to arbitrar increase in the cost of living. Transportation for instance, goes up crazily.

Moves to Remove Subsidy & Reactions

Therefore, successive federal governments having seen the outright abuse of the subsidy policy have always tried to cancel the policy so that market forces can determine the cost of petrol.

More so, the huge amount of money paid into the pockets of Marketers can be channeled to other meaningful venture such as infrastructural development, agriculture, social security, technology, health, etc.

However, whenever the move to remove subsidy is made, the Marketers are quick to shutdown their filling stations and deprive Nigerians access to the already subsidised fuel in their possession. This leads to instant scarcity regime and hardship (like we are already witnessing).

And while the marketers make more money on one hand, they force and instigate Nigerians against the federal government with the hardship created on the other hand.

Then, the innocent Nigerians who do not understand the politics behind subsidy go on strike, protest, attack the government and force her to continue the subsidy regime. We pay more for our ignorance at the long run.

The marketers are happy; they remain the top billionaires in Africa. Everyone loves them, wish to be like them, and celebrate them. Whereas the federal government count her losses, takes the insults, bears the bad name and pity uninformed/suffering Nigerians like you and me.

Will you support Tinubu to break this cartel, this subsidy syndicate and give us freedom or you will remain adamant and spread the hate?

That is the game by the Fuel Cabals against gullible Nigerians. Be wise and support Government.


#copied

You make little or no sense here.
1. NNPC is the soul importer of fuel. Marketers buy from NNPC.
2. We do not consume up to 40m litres a day. The Federal government is complicit in the smuggling of subsidized fuel from Nigeria to the neighboring countries and can stop it if the political willingness is there.
3. Why did they refuse to fix our refineries?
4. The refusal to fix our refineries and the removal of subsidy is purely because of their private refinery (aka Dangote refinery) that will soon commence operation.
5. THESE BEASTS ARE JUST BEING WICKED TO NIGERIANS

GeneralPula:

The thing is, subsidizing fuel for only nigeria is good! But the issue is were subsidizing for other countries!

Smugglers are also using the medium to smuggle subsidized fuel to other countries for sale! They took advantage of the fact that government is subsidizing fuel for Nigeria!

Tinubu said days ago that we can't keep subsidizing fuel for other countries.

So my take is:
Let the subsidy stay gone forever! Then after sometime, re-introduce another method of subsidizing for Nigeria only! It has to come with strict measures!

I'd like Tinubu to make Buba Marwa Minister of petroleum!

What experience does he have to make him a minister in a very sensitive position.

slimfit1:


What experience does he have to make him a minister in a very sensitive position.

True..
Maybe you’re right..

fyzaila:


I don't really get this your analysis 🤔

It means everyone irrespective of social class benefit from it one way or the other. The man buying fuel into his car is no different to a beggar without a car since he also must be transported around, eat food which was aided by fuel and live somewhere. Fuel/petrol/gas determines how much contentment you'd have in respect to spending. If it goes up, you'd spend more even as a poor soul.

jayworld15:


It means everyone irrespective of social class benefit from it one way or the other. The man buying fuel into his car is no different to a beggar without a car since he also must be transported around, eat food which was aided by fuel and live somewhere. Fuel/petrol/gas determines how much contentment you'd have in respect to spending. If it goes up, you'd spend more even as a poor soul.

True 👍
Making a whole lot of sense.
Thanks!

TINUBU HAS REMOVED FUEL SUBSIDY. THAT IS NOW LAW. NO GOING BACK. SO LET DEMANDS DETERMINE FUEL PRICES.

slimfit1:
Labour must compell the government to buy buses. Don't let us deceive ourselves the poor is not benefiting from this subsidy. I think the only people that should be getting subsidy are the state buses that we don't have and should have.

Labour is full of criminals. The only thing they can fight for that is beneficiary to them right now is minimum wage since there'd definitely be inflation and 30k won't be able to deal with this. Anything other than that is their ellu p voice screaming. No one needs subsidy for anything, We will all get used to it.