Lekan239:
then pack go venezuela bro

Venezuela 🇻🇪 is still preferable than Nigeria 🇳🇬 now

Tayorshd87:


Not true they are not suffering us ..is actually for our own and developmental benefits

no preparation before the fuel subsidy removal

BreconHills:


If subsidy had continued you would have known what suffering is. Thank your stars you have President with some courage

with or without removal of fuel subsidy, Nigerians still suffered now

Buddha3:


Mention one abeg!

There was one made in Germany I took sometime ago but I cant remember the name now.

This is not true.
The cost to refine gasoline varies between $.40 and $.70 per gallon and a gallon is about 3.8 litres approximately.

nairalanda1:


Refining crude oil into one liter of fuel costs between 0.40 dollars to 0.70 dollars...which is N308-N532.

Sauce: Google.

The Arabs used their oil to life their people out of poverty. The black man hates himself.

nairalanda1:


Maybe. But at the end, it is still early days. Let's see what happens when

1,More importers come in
2.Domestic refining picks up again.

Did more importers of diesel and kerosene not come in?

How does more importers coming in now affect anything?

Why do u still need importers when nnpc says that Dangote refinery will help nigeria stop importing and save forex....the same forex you keep complaining that subsidy has depleted?

BreconHills:


If subsidy had continued you would have known what suffering is. Thank your stars you have President with some courage

Have Nigerians not been suffering? Is it subsidy that caused the suffering?

Since Tinubu "removed" the subsidy, has the suffering reduced or increased?

Since the 90s, successive governments have been "removing" subsidy. What was the percentage of a litre of fuel that the government was paying as subsidy?

With each successive "removal" of subsidy, what percentage was removed and what was left?

In this "removal" by Tinubu, what percentage was removed?

nairalanda1:


Okay, let's have some figures here.

In 2011, landing cost of fuel by December that year was N99, and fuel was N65

In 2023, May, landing cost was N371 and fuel was N195.

The subsidy is what is paid to 1) cover the difference between the landing cost and the price at the pump and 2) paid to transporters so that fuel can cost N195 in Lagos, Aba, Enugu, Oturkpo, Maiduguri and Sokoto and Ibadan.

In other words, the difference between the landing cost and the cost at the pump.


In the good old days, subsidy was what was paid to cover the resulting loss from selling fuel below what it cost to produce and transport.


And it rises because

1.Consumption rates of fuel...taking away smuggling and stealing and inflated claims...rises year in and out.

2.Cost of producing fuel rises due to new production methods, workers welfare, etc....

3.Cost of transporting fuel rises...rise in diesel costs, workers welfare, etc....and the fact we import.

Where did you get your figures? Based on your figures, kindly answer the following which you have consistently been dodging for a very long time.

1. Since the 90s, successive governments have been "removing" subsidy. What was the percentage of a litre of fuel that the government was paying as subsidy?

2. With each successive "removal" of subsidy, what percentage was removed and what was left?

3. In this "removal" by Tinubu, what percentage was removed?

Why are u always running away from my questions? Will your answering questions expose the lies that you peddle all over nairaland about the fuel subsidy issue?

themanderon

nairalanda1:


Yeah, APC is not good, but if subsidy had not been removed, whoever was is power, we would have been in serious fiscal trobule sooner

There is a reason why all three candidates and several smaller candidates all said subsidy had to go.

(No, I don't support nor do I vote for APC, and regard them as failures).

Then answer these questions if you believe subsisy is the problem and not the people managing it.

Since the 90s, successive governments have been "removing" subsidy. What was the percentage of a litre of fuel that the government was paying as subsidy?

With each successive "removal" of subsidy, what percentage was removed and what was left?

In this "removal" by Tinubu, what percentage was removed?


9jahotblog

nairalanda1:


No, I am not tired...lol

I am just telling you that when you fix prices below production cost, alot of distoritons result.

But guys like you want cheap fuel. And yes, I get it. I too would want fuel to be cheap. But it costs money, even if we get rid of corruption and stealing, to make one liter of fuel. That liter has to be sold at a profit to make the refineries run well, pay for upgrades, and pay for maintenance.

Bring in subsides and corruption always results. Plus debt.

You are missing things because you believe that running deficits to pay for subsidy is good economics. It isn't and we are in a mess because of that.

I was actually commending you. It's been a very long conversation and you have held multiple at the same time.

As regards cheap fuel, I think cheap is a rather unfair word to use. Have you thought of it this way - what percentage of the minimum wage will you need to fuel up a car as compared with a country like the US? We like to compare expenses a lot without considering income.

The crude oil is ours we don't have to pay for it. We only have to pay for refining and distribution and I showed you earlier that refining cost is about $0.7 a gallon (about 3.8 litres) give or take. Factor in distribution cost and round that up to about a dollar per gallon. That's about N700 for 3.8 litres - less than N200 a litre with a very decent profit margin.

Now I know this will encourage criminals to steal and export to sell at a higher price but a serious government can discourage them by severely punishing offenders. Like severe punishment.

Passing the buck unto a largely low income population will only embolden these criminals. They'll soon find other means of stealing cos their safety is sort of guaranteed. What the president has done can be likened to a poultry farmer who decides to close his farm because snakes attack his birds. It doesn't make sense.

Granted he's done it already and there's no going back but he can't stop there if he truly means well. He needs to fish out at least one criminal and make an example of him to discourage others otherwise, the same thing that happened after the removal of subsidy from diesel, kerosene and electricity will happen...nothing will change.

ChenHao23:
This is not true.
The cost to refine gasoline varies between $.40 and $.70 per gallon and a gallon is about 3.8 litres approximately.

And nowhere in the USA...which is where those figures come from, does fuel retail at 0.70 per gallon.

nairalanda1:


Corruption is a sympotm of subsidy...it happens whenever there is a subsidy...because free government money.

At the end, let's see if Dangote is serious about domestic refining.

How can corruption be a symptom of Subsidy?

Corruption is an action carried out by people. Subsisy is a non living thing that can't do anything on its own. But yet the non living is the problem but the action that abuses it, is it's symptom. Wow. This your logic is wonderful.

There's corruption everywhere in Nigeria but u claim that corruption only happens where there is subsidy. I guess subsidy is responsible for the corruption in the police or customs. Subsidy is responsible for oil theft that cost nigeria $1billion in the first quarter of 2022.

Subsidy is responsible for the N1.4tr buhari spent on refineries in five years with nothing to show.

Dude look for another argument. These your points are lame and unconvincing

XY23

Very interesting read.

Fuel subsidy is why we don't have good healthcare, good school, security is suffering, Lori iro.

The current price is dictated by the market, lóríi Iro

Crude oil is a curse, we are better off selling groundnut, cocoa and palm oil, lóríi Iro.

AK481:


Both of you end up saying the same thing .

Corruption cannot be eradicated but can be reduced .
Libido can't be eradicated but can be reduced
Same thing.
Instead of reducing corruption, they removed subsidy which can create corruption.

Instead of reducing promiscuity, they removed the prick


Learn to read critically my friend.

All the corruption in Nigeria has been reduced because subsidy has been removed

nairalanda1:


Maybe. But at the end, it is still early days. Let's see what happens when

1,More importers come in
2.Domestic refining picks up again.

Nothing will change just like dangote cement. Cement was cheaper when it was imported

nairalanda1:


That's because we never earned enough in oil revenue to satisfy all of us.

We produce just as much oil as Libya and Qatar, and both Libya and Qatar have 8 million and 2 million approximately...compared to our 200 million people

We also produce about one tenth to one eight of the oil Saudi produces, and Saudi has 40 million people compared to our 200 million.

Plus, things that we should use taxes for...we use oil money for.

Note: I did not say there is no corruption. E dey well well...but what corruption does is make our already bad situation worse.

Pls read what you typed and read the comment you responded to. What exactly point have you made? All I see isomeonr who is trying very hard to exonerate corruption but to blame nigerias situation on fuel Subsidy and lower income compared to other countries

abhosts:
Nigeria is a nation whose citizens can no longer enjoy the privileges of an oil-producing state because most of the Nation's resources have been plundered and mismanaged.

system21:

Nothing will change just like dangote cement. Cement was cheaper when it was imported

It wasn't.

nairalanda1:


And nowhere in the USA...which is where those figures come from, does fuel retail at 0.70 per gallon.

Minimum wage is $2400/month. Average price of petrol in the US is $0.92/litre (correct me if I'm wrong). That's about 0.038% of their minimum wage.

Our minimum wage is N30,000 (you and I know that many people earn less). Petrol is N500/litre on average. That's about 1.67% of the minimum wage. Phew!

nairalanda1:


It wasn't.

It was bro. It was about N600 a bag in the early 2000s. Factor in inflation and it still won't reach its current price.

emorse:

Minimum wage is $2400/month. Average price of petrol in the US is $0.92/litre (correct me if I'm wrong). That's about 0.038% of their minimum wage.

Our minimum wage is N30,000 (you and I know that many people earn less). Petrol is N500/litre on average. That's about 1.67% of the minimum wage. Phew!

Nigerians earning mininum wage don't drive or own cars for the most part.

Plus, in the USA, they have working refineries because fuel is sold at a profit, and finally....prices for fuel vary across the US well well well.

Even that O.92 per liter is above N600 per liter.

Oga, give it up. My problem with you guys is simple. You do not want the petroleum sector to operate at a profit...so then how do you expect them to give you domestically refined fuel?

Price controls do not work.

You are free to disagree with me.

BIZNess123:
Libya is heaven on earth..if not for the mistake gadafi made ....now the place is heavily unstable ...even at that cost of living is low

Which mistake did Gaddafi make?

emorse:

It was bro. It was about N600 a bag in the early 2000s. Factor in inflation and it still won't reach its current price.

So, Dangote, Bua and company should sell cement at N600.?

How would they pay for all their costs then?

If you want price controls, overhtrow this government and set up a Communist government. And then set prices everywhere so that the poor benefit. And watch as production falls because we no longer have enough profit to manufacture things.

It is painful, but things cost money. In 2001, people were probably complaining that cement was too expensive then...when it used to cost less than N100 in 1990.

nairalanda1:


Nigerians earning mininum wage don't drive or own cars for the most part.

Plus, in the USA, they have working refineries because fuel is sold at a profit, and finally....prices for fuel vary across the US well well well.

Even that O.92 per liter is above N600 per liter.

Oga, give it up. My problem with you guys is simple. You do not want the petroleum sector to operate at a profit...so then how do you expect them to give you domestically refined fuel?

Price controls do not work.

You are free to disagree with me.

He should give it up but he should also be free to disagree with you. Which 9be?

When nigerias refineries were working, who was the government paying subsidy to?

Who were the citizens paying for the fuel they consumed?

emorse

9jahotblog:
Venezuela 🇻🇪 is still preferable than Nigeria 🇳🇬 now

Venezuela you say?


You most be high on cheap weed.

A key thing that people miss about subsidy is that....subsidies mean you sell below the production cost.

At the end of the day, the problem is, keeping things subsidised would cost one a lot of money.

We should fight corruption, and evil and mismanagement, but the sad thing is, all that is not relevant to the discussion.

At the end, people have to make money making things. If they do not, you end up with scarcity, stealing and corruption. And eventual collapse.

That is why subsidy has to go.

If it makes me sound evil and dirty, so be it. But it is the truth, the whole truth. Unless you all want to find a solution to humans wanting to make more money, which does not exist.

Good evening

“The society that lives on subsidies and freebies, is always responsible for a corrupt governance.”
― Dr. Ashok Anand

9jahotblog:
Venezuela 🇻🇪 is still preferable than Nigeria 🇳🇬 now

Venezuela is in a big mess.

A large percentage of its people are walking with their feet to the USA and other countries to make money. Their currency is severely worthless, and they are literally losing money every year.

nairalanda1:


Nigerians earning mininum wage don't drive or own cars for the most part.

Plus, in the USA, they have working refineries because fuel is sold at a profit, and finally....prices for fuel vary across the US well well well.

Even that O.92 per liter is above N600 per liter.

Oga, give it up. My problem with you guys is simple. You do not want the petroleum sector to operate at a profit...so then how do you expect them to give you domestically refined fuel?

Price controls do not work.

You are free to disagree with me.

You are just wasting your time...this guyz are irredeemable.

Balogunodua:


You are just wasting your time...this guyz are irredeemable.

No, no one is irredemable.

Subsidies do work,...it is why some people may be able to surivive in this country. The problem is, subsidies grow and grow...and eventually eat the revenue we earn from oil among other things.

nairalanda1:


No, no one is irredemable.

Subsidies do work,...it is why some people may be able to surivive in this country. The problem is, subsidies grow and grow...and eventually eat the revenue we earn from oil among other things.

Subsidy is good in some instances...but you don't subsidize 100% of what you import.

Balogunodua:


Subsidy is good in some instances...but you don't subsidize 100% of what you import.

Exactly.

9jahotblog:
Venezuela 🇻🇪 is still preferable than Nigeria 🇳🇬 now

oya dey go der sir/ma