lexy2014:


How have the average consumer of fuel in Nigeria been buying excessive fuel and wasting the fuel?

Why will retail outlets be forced to reduce prices?

I thought you guys said petrol price is a product of global crude oil price, landing cost and transportation cost and PMS price has be high to cover these costs? Have these prices depreciated?

It's all basic economics.

1. Who is the average consumer of fuel in Nigeria? By far the highest (and therefore average) consumer of fuel is the wealthy upper class that own 2-3 vehicles, run generators all day and so on. This is wastage.

2. Basic principles: higher demand leads to higher prices, higher prices leads to lower demand, lower demand leads to lower prices. In the middle of the cycle there is a place where optimum demand meets optimum pricing, and the price rests there, provided all other factors remain constant. What we have seen over the past week is excess demand pushing prices up. At the current prices, people will shun fuel--as you will have seen from the article. As more people shun fuel, retail outlets will make lower sales and less profits. Remember that fuel subsidy is still in play at this point. To recover to the level sales they want to make, prices will have to drop by some amount.

3. Who is you people? Talk in a reasonable way so I can understand you. In any cases, prices are a function of market forces at many levels, both international and local. If there is a shift in global market factors, it will of course affect local prices. does that mean global market factors are the only determinants of prices? Obviously not, as there are local market forces too.

However, under the subsidy regime, consumers were largely shielded from global shocks. In a free market economy, prices will have to respond fluidly to all market forces.

Warl0ck:
u fit afford fuel?

Urch!n

Not everyone is your mother or fathers from subdued and abysmally inconsequential generations,

YOU GO DEY TRUST MAN!

kosiebe:

Yes ooo. I never regretted voting him. I believe and trust him

Creamypie:
After obj/yar Adua, no government anymore

Jonathan came in 2011 and by 2012 he had already seen the danger in paying subsidy

But Nigerians were blinded by politics of propaganda

What a welcome development

kosiebe:

Yes ooo. I never regretted voting him. I believe and trust him

When are you guys going to learn?

jmoore:
Most homes no longer use generators to power their homes.

Some people have parked their cars.

Some businesses only use petrol if their customers are ready to pay for extra cost of services rendered.

By next month,cars for sale will be everywhere.

pandoragirigory:
The higher the price the lower the quantity demanded

Law of demand.

Manny21:
The 540 per litre is NNPC price. Some of them will start reducing their profit margin to be able to offload what they present store.

Well said and captured.
If it has to take a filling station 1 week to exhaust a petrol truck for almost the same relative profit margin of about ₦120-₦150k per truck,even the less popular stations may use 10 days;it doesn't take rocket science to know they have to either reduce the pump price,even if the margin of profit now becomes ₦2 per litre,to make quicker turnover,or they tell NNPC to reduce the price they sell to them.
With say 450k-600k per month,or even 200k,you still have to pay staff,manager,fuel the station gen when no light,pay high tariff for public power,service your machines,pay truck etc.
What is now left for you as the owner may just be 150k per month!
I posted in another thread that even transport cost would come down a bit because of same reduced patronage and one imbe replied that I was typing rubbish!
Whenever cost of a service becomes too high or unbearable,as fuel now is,innovation and reduced patronage will somehow in the long run benefit people because of market forces.
Maybe not this year,but I bet anything by next year,prices won't be this high.

mpire:


Then Jonathan turned around and gave NNPC key to his girlfriend Diezani.

Who's the humanitarian affairs minister under Buhari you supported until he left office?..

There's no truth in religious bigotry and tribalism

who be MURIC more like prick

pandoragirigory:
The higher the price the lower the quantity demanded

Law of demand

Jennie002:
Congratulations to those that read it finish

Smile.... At some point I had to stop but something said to be you can do it,, then I continued and to the last

Thanks

SmartyPants:


It's all basic economics.

1. Who is the average consumer of fuel in Nigeria? By far the highest (and therefore average) consumer of fuel is the wealthy upper class that own 2-3 vehicles, run generators all day and so on. This is wastage.

2. Basic principles: higher demand leads to higher prices, higher prices leads to lower demand, lower demand leads to lower prices. In the middle of the cycle there is a place where optimum demand meets optimum pricing, and the price rests there, provided all other factors remain constant. What we have seen over the past week is excess demand pushing prices up. At the current prices, people will shun fuel--as you will have seen from the article. As more people shun fuel, retail outlets will make lower sales and less profits. Remember that fuel subsidy is still in play at this point. To recover to the level sales they want to make, prices will have to drop by some amount.

3. Who is you people? Talk in a reasonable way so I can understand you. In any cases, prices are a function of market forces at many levels, both international and local. If there is a shift in global market factors, it will of course affect local prices. does that mean global market factors are the only determinants of prices? Obviously not, as there are local market forces too.

However, under the subsidy regime, consumers were largely shielded from global shocks. In a free market economy, prices will have to respond fluidly to all market forces.

How are the upper class the average consumer of fuel in Nigeria?

If running generators all day is wastage, that means that companies that do so are wasting fuel...right?

How did higher demand of fuel in Nigeria lead to.higher prices?

How is fuel subsidy still in play when price of fuel has jumped from 180 to more than 500 naira?

I thought the fuel subsidy has been removed? How is it still in play?

If you are supporting fuel subsidy removal then you are supporting the argument that the reason fuel subsidy has to removed is that government has been subsidizing the cost of global crude, landing cost, refining cost and transportation cost. What other "global forces" are you still referring to that are different from those I just listed?

What "market forces" made fuel price to jump from 180 to more than 500 naira?

Leave me alone! i no dey go work tomorrow



Wetin concern me with query

Racoon:
All the wicked demons in government since 2015 were shouting fuel subsidy was a fraud but ended up committing the same fraud for the 8 years of their miserable reign.

Now they suddenly see the compulsive reason to do away with this economic disaster that ought to have been avoided since 2012. Playing partisan politics with a sensitive national issue they have zilch knowledge about.

Racoon, you really should stop crying about all the wicked demons.

Yes, Tinubu and APC were wrong to oppose subsidy, but your beloved GEJ should have grown a pair and removed subsidy. Yeah, he would have lost 2015 by a wide margin, but generations later, we would have thanked him

ZombiePUNISHER:


Governors Back Tinubu's Subsidy removal

But in 2012 when Jonathan did same

The then Lagos State Governor and APc organized a protest against subsidy removal..
They mocked Jonathan
Taunted him and even carried a coffin.

There are levels to evil.

oga you are still crying, should it be removed now or not?

ZombiePUNISHER:


Governors Back Tinubu's Subsidy removal

But in 2012 when Jonathan did same

The then Lagos State Governor and APc organized a protest against subsidy removal..
They mocked Jonathan
Taunted him and even carried a coffin.

There are levels to evil.

Tell your regional Governor and your brother to protest against it since it hurt u so much

bonnyhope:


Jonathan came in 2011 and by 2012 he had already seen the danger in paying subsidy

But Nigerians were blinded by politics of propaganda

In 1993 and 2006 when subsidy removal was proposed, Nigerians responded in the same way they did in 2011.

No protests, but a firm NO.

That subsidy is going now has nothing to do with Tinubu but everything to do with the facr that the money is not just there anymore

lexy2014:


How have the average consumer of fuel in Nigeria been buying excessive fuel and wasting the fuel?

Why will retail outlets be forced to reduce prices?

I thought you guys said petrol price is a product of global crude oil price, landing cost and transportation cost and PMS price has be high to cover these costs? Have these prices depreciated?

Good questions!

ZombiePUNISHER:


Governors Back Tinubu's Subsidy removal

But in 2012 when Jonathan did same

The then Lagos State Governor and APc organized a protest against subsidy removal..
They mocked Jonathan
Taunted him and even carried a coffin.

There are levels to evil.

Seriously you guys make GEJ look weak by this your comments

Gej should have just simply ignored the protests and removed subsidy. Simple.

millionboi2:
By next month people will start selling their cars.


Tinubu should open border thats when i will confirm that he is working.
Atiku promised to open border,tinubu should do that now if he wants a second term.

The borders are already open. It's only for the Fulanis monopolizing the borders to be cleared.

KingKO22:
I see PMS price depreciating any moment from now especially when there is competition among importers

BAT has done remarkably well within short period of time in office


I never regret voting and canvassing for you

God will never be fair to people like you at judgement. Was it not same Tinubu that fought a sitting President for same reason? Now tell me what he did differently that he is now a hero ? Please, answer

Racoon:
All the wicked demons in government since 2015 were shouting fuel subsidy was a fraud but ended up committing the same fraud for the 8 years of their miserable reign.

Now they suddenly see the compulsive reason to do away with this economic disaster that ought to have been avoided since 2012. Playing partisan politics with a sensitive national issue they have zilch knowledge about.

My indomie friend, the first fuel subsidy process was in 1982 and that of 1988 was especially bloody with all universities locked down. Subsidy resistance did not start in 2012.

The protests have always had the same core reason - firstly, lack of trust in the government to manage funds released by elimination of subsidy. Second, human "endowment bias" or the reluctance to let go of a current "gain" in exchange for a future and as yet uncertain one. Cause was not GEJ.

Short history lesson.

Follow Naptu on NL for more in depth reasoning on the oil subsidy.

millionboi2:
By next month people will start selling their cars.


Tinubu should open border thats when i will confirm that he is working.
Atiku promised to open border,tinubu should do that now if he wants a second term.

mostly people that have more than 2cars

With what I am seeing in Bayelsa state, more than 50% of filling stations will soon close down.

kosiebe:

Yes ooo. I never regretted voting him. I believe and trust him

He fought a sitting president for same reasons . What has he done differently that has made him a hero ? He is your tribe man or what ?

Racoon:
All the wicked demons in government since 2015 were shouting fuel subsidy was a fraud but ended up committing the same fraud for the 8 years of their miserable reign.

Now they suddenly see the compulsive reason to do away with this economic disaster that ought to have been avoided since 2012. Playing partisan politics with a sensitive national issue they have zilch knowledge about.

I you are in serious pain

slawomir:
Damnnn niggar

Hmmmm

Since almost four days now I never drive my lexus

Any how waka way nor make sense I nor dey go

I better relax for house dey smoke and drink...even if I want go beer parlour....na the one way dey near me..the one treckable

The 36k full tank way I buy I go make sure say I manage till next year

No use life way go systematically change you to area boi oooo...na so e de start..

SmartyPants:


It's all basic economics.

1. Who is the average consumer of fuel in Nigeria? By far the highest (and therefore average) consumer of fuel is the wealthy upper class that own 2-3 vehicles, run generators all day and so on. This is wastage.

2. Basic principles: higher demand leads to higher prices, higher prices leads to lower demand, lower demand leads to lower prices. In the middle of the cycle there is a place where optimum demand meets optimum pricing, and the price rests there, provided all other factors remain constant. What we have seen over the past week is excess demand pushing prices up. At the current prices, people will shun fuel--as you will have seen from the article. As more people shun fuel, retail outlets will make lower sales and less profits. Remember that fuel subsidy is still in play at this point. To recover to the level sales they want to make, prices will have to drop by some amount.

3. Who is you people? Talk in a reasonable way so I can understand you. In any cases, prices are a function of market forces at many levels, both international and local. If there is a shift in global market factors, it will of course affect local prices. does that mean global market factors are the only determinants of prices? Obviously not, as there are local market forces too.

However, under the subsidy regime, consumers were largely shielded from global shocks. In a free market economy, prices will have to respond fluidly to all market forces.

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Iwe ….. Iwe. …..
You sabi book my guy
I’ll recommend you for Minister of Economic planning and Development 🤓