Two things. Nigeians talk about a free market as if they know what it means or how it functions. That's not necessarily the case. This so-called subsidy removal teaches us all this lesson. A free market is an illusion in a perversely corrupt society like Nigeria. Grand corruption on its own is enough to distort any market.

nairalanda1:


Which won't magically mean fuel would be N200 when it comes on stream

Things cost money. Would you sell your service for less so that the poor can breathe? No.

...but at least with dangote refinery starting operating the crude oil will be refinel locally in nigeria which will be more better than importing it... even if the fuel is around 300 naira a litre with dangote refinery..it's better

nairalanda1:


Fixing the refineries won't have caused a reduction in price by much. (Some say N70).

The refineries still have to be maintained, and repaired and kept in good working order, and they still have to pay workers at competitive rates. Guess what, we still have to import components for the refineries from abroad, then they have to pay taxes, and pay for community projects.

And all that costs money.

Fuel isn't cheap. Niger, Ghana refine fuel from domestic crude, and fuel costs above N800 in both countries.

at least the price will not be determined by forex instability

helinues:
Oil marketers are one of the problems we have in Nigeria. They are just too selfish with everything

How are they selfish? Are the ones pushing up the dollar or pulling down the naira?
Tell your pathetic president to fix the refineries and put marketers out of the business of importation of fuel.
Do you expect them to sell at a loss?

Holla911:


How could he have repaired the refineries while paying subsidy ?
One had to go for the other. We have no choice but to endure the difficult time while hoping and praying our leaders get it right.
The current hardship is a global pandemic.

you guys and prayers so its prayers that is keeping the western world moving, same prayers and hope you endured for eight years of buhari you want to make same for this half human, half ghost, kontunu, suffer looks good on you, awon alai ni ogbon jatijati

WildChild00:
Hardship looms, Tinubu ought to have fixed the refineries before removing subsidiaries, now hardship knows no party affiliation, both Apc, pdp, labour party supporters feels the pains.

He can't fix refineries o. . He wanted to quickly recoup his investment into he elections first and thereafter share proceeds with his paddies and cohorts.

WHAT ABOUT ALL OF THE NOISE ABOUT DANGITE REFINERY THAT BUHA GAVE NAIJA MONEY TO BUILD

PARADIZEPRIEST:
WHAT ABOUT ALL OF THE NOISE ABOUT DANGITE REFINERY THAT BUHA GAVE NAIJA MONEY TO BUILD

Something fishy is going on,the govt should go after economic mafias and economic sabotouers in Nigeria

My happiness is that both Agbadorians, Christians, Muslims, APC, and we other innocent Nigerians are suffering this most wicked administration together.

Holla911:

Considering how long you've been on this forum, I expected you to be matured and reasonable but I was wrong.

wEREY tinubu supporter expecting reason...

i have more sense to know you engage animlas like beasts, not with intellect

tsdarkside:


subsidy was a bad idea from the start....

not a bad idea per se....
but with greedy people it will become very expensive....

no matter what goverment tried,the amount kept on risin and risin....
nigerians dont care to get money through corrupt ways....

igbos are a good example....

What will stop the govt from repairing our refineries.
If the govt can't monitor subsidy well enough, who am I to help them.
Can't u make a comment without being tribalistic.

helinues:
Oil marketers are one of the problems we have in Nigeria. They are just too selfish with everything

If u are the one bringing in goods like them,would u sell on loss or u will sell to make profit?

That is the reality on ground and the exchange rate is the driver to this increment.

Before u come for my head,let me pre-empt u by saying that I am not an oil marketer nor any of my family members but as a business man,that is what Tinubu caused by allowing the free flow of dollar in the country's economy.

alimiadedayo1:

at least the price will not be determined by forex instability

AAMEN to that.

Mrtaye:

Then go for modular refineries it's nothing major even private citizens can own modular refineries..... Don't people operate smaller refineries in Niger Delta,so what's so special about refining that you are making it so hard to convince ...even countries like Libya and smaller countries have functioning refineries and don't have to refine their crude abroad which is more expensive than having refineries

You won't want the kind of petrol they produce in Tamuno's backyard refinery in your engine....sure way of wrecking it overtime.

Also, Libya produces just as much fuel as we do, and has 7-8 million people...thus far more money to spend on refineries than we do with 200 million and growing people.

Holla911:


How could he have repaired the refineries while paying subsidy ?
One had to go for the other. We have no choice but to endure the difficult time while hoping and praying our leaders get it right.
The current hardship is a global pandemic.

So na only subsidy we dey pay from our budget?

How much is even the subsidy, cos what we have now is over 300% increase, are you saying the government have been paying more than 100% to keep fuel cheap??

Who and who have benefited from this anomaly and is the government ready ti prosecute them? No one knows the answer to all of these but we must suffer, so our leaders can live large

Werey gbogbo

SIRTee15:


As usual another of your thoughtless theory economics that fails heavily when tested.
So long as we import fuel, there would always be pressure on the naira, and then the rebound effect on the price of fuel itself. And the merry go round continues.
So when do we stop, when do stop? When dollar becomes 2000 naira/dollar or fuel becomes 2000/litre.
Close to half of our import is fuel. Half of our Forex we earn goes into importing fuel. That's the reason the dollar keeps rising. And a rising dollar will need to inflation, higher cost of living and weak purchasing power for the people. Rampant inflation will force the CBN to raise interest rate to keep inflation in check leading to higher cost of borrowing. All these leads to poor economic outlook for the nation. This is not rocket science.
The only way out is to refine fuel domestically, that alone will crash the dollar by half its value in naira.

This present govt will eventually be forced to subsidise fuel again because there's a limit to what the people can take. Talking about putting the cart b4 the horse.

That's why you have tot ell the license holders to then commence refinery construction now now

Also, subsidy has gone. We don't have the money, even if we took it from the mouths of our greedy politicans...especially since by May it was costing three times our annual Legislooters salary to pay subsidy for a month.

People keep saying if our refineries are fixed or we get lots of local refineries that are refining fuel for local consumption, the prices will remain the same or slightly lower.

The question is should we sell crude to local refineries for local consumption at international prices?

Holla911:

What do you suggest we do ?

Stop voting criminals they can never get it right.

porka:


Alagba, they are not even talking about subsidy here in the report. What the report is about is forex. Did you read it at all?

You are still talking about subsidy that has been removed? They have removed it for you as you have advocated.

Your 10-20 years projected suffering is foolish. You don't even have any idea what suffering entails. You don't even know what destabilization that would occur before next year or two and you are making foolish 10 - 20 year projections.

Try and reason like a human being who has higher capacity than lower animals. What exactly are the projections based on? Nothing but wishful thinking.

Have you factored in sudden international or even national occurrences that might happen along the line? War in the Balkan; Tension or possible war between US and China? NATO-Russo war? Massive global economic and financial turmoil? Another pandemic?

Did you know if there would be coup in Niger by this time last year, for instance? Have you considered that Nigeria might be spending so much money out of the socalled subsidy savings in prosecuting a needless war in the coming months?

Don’t mind that Mumu. Anywhere he hears or sees the word subsidy he just jumps in and starts talking rubbish.

I don’t know how these people think sef. They need to be dissected and their brains studied to understand how they acquired such stupidity.

When several local refineries are operating and producing fuel locally, competition within the downstream sector will drive the price of fuel down as supply will be higher than demand. Also regarding your question, when you produce locally the price for petrol is not controlled by international market forces but by cost of production (Cost of refining) this cost can be passed on as fees to other countries buying our refined fuel if government and local refinery owners decide to export the finish products (Petrol, Diesel, Kerosene....etc) to other countries.

Sheuns:
People keep saying if our refineries are fixed or we get lots of local refineries that are refining fuel for local consumption, the prices will remain the same or slightly lower.

The question is should we sell crude to local refineries for local consumption at international prices?

WildChild00:
Hardship looms, Tinubu ought to have fixed the refineries before removing subsidiaries, now hardship knows no party affiliation, both Apc, pdp, labour party supporters feels the pains.

Fixing or selling the refineries?

When it was sold in the past, same Hypocrites cried to Government to take it back, if Tinubu does the right thing by executive order, the humbugs will still wail, your best bet, let your lazy legislators make a law, that government should not be involved in refining crude oil.

Holla911:


How could he have repaired the refineries while paying subsidy ?
One had to go for the other. We have no choice but to endure the difficult time while hoping and praying our leaders get it right.
The current hardship is a global pandemic.

Keep supporting bad government cos you benefit you. Has Nigeria ever got it right?

Jflex07:
Keep supporting bad government cos you benefit you. Has Nigeria ever got it right?

How could past governments have repaired the refineries while paying subsidy?

Confusion everywhere

nairalanda1:


Fixing the refineries won't have caused a reduction in price by much. (Some say N70).

The refineries still have to be maintained, and repaired and kept in good working order, and they still have to pay workers at competitive rates. Guess what, we still have to import components for the refineries from abroad, then they have to pay taxes, and pay for community projects.

And all that costs money.

Fuel isn't cheap. Niger, Ghana refine fuel from domestic crude, and fuel costs above N800 in both countries.

All true but at least it's less likely there would be a supply crisis if local refineries were operating. Price is one thing, availability is another thing. It's a damn shame to have this much crude oil and natural gas and still suffer energy shortages.

The primary cause of the Nigeria Crisis is SOCIALIST POLICIES and this phase was kicked off by APC when they sponsored Occupy Nigeria in Jan 2012, forcing the Federal Government to retain expensive fuel subsidies. The APC was then elected to the Presidency on the strength of their pledge to keep fuel prices low and defend the naira. Those policies have now bankrupted Nigeria.😳

It's going to get worse. The CBN finally released its audit report. It confirms that in 2021/2022, at least $15 billion of the total $33 billion foreign reserves were pledged as collateral for loans from Goldman Sachs and JP Morgan Bank. 😀 And of course the money is spent, chopped and gone in the crazy system of subsidies that is the Nigerian economy.

What a Zoo. Don't forget that Nigeria is still a better place to live than the UK. It is well.

Good Luck to Nigeria!!!

helinues:
Oil marketers are one of the problems we have in Nigeria. They are just too selfish with everything

Listen to what you yourself wrote-does it make any sense?

You speak as though the oil marketers owe you a living. They owe no one. They are business men like you and me.

When you get rid of that entitled mentality, the reality on ground would be better understood.

Presently, the 2 most important variables when determining the price of petrol are the price of petrol in the international market and the exchange rate. Those 2 are the prime determinants of the price.

If the price increases internationally, Nigerians will pay more. If the Naira appreciates in value, it will bring down the price.

Presently, the Naira has been dropping in value, so expect to pay more.

helinues:


If we have been more production country, we could have been earning more forex from exporting our local products rather than waiting for fuel forex...

How can we as a country of 200m plus still be importing fish and turkey when we can start the mass production here. We waste our forex reserves importing unnecessary things

So can you venture a guess as to why Nigeria is so dependent on imports? Why does Nigeria export so little?

What are UNNECESSARY imports and who defines it?

grandstar:


Listen to what you yourself wrote-does it make any sense?

You speak as though the oil marketers owe you a living. They owe no one. They are business men like you and me.

When you get rid of that entitled mentality, the reality on ground would be better understood.

Presently, the 2 most important variables when determining the price of petrol are the price of petrol in the international market and the exchange rate. Those 2 are the prime determinants of the price.

If the price increases internationally, Nigerians will pay more. If the Naira appreciates in value, it will bring down the price.

Presently, the Naira has been dropping in value, so expect to pay more.

That's Nigerians and their SOCIALISM. Everything must be controlled and dictated by government.

Thanks!

Abeg, which other bank has started international transactions on their naira debit cards aside WEMA bank?

Na this one I wan know

a country blessed with so much crude oil importing pms for donkey years, God will certainly punish this bad leaders.

Hahahahaah

adenigga:



Source: https://punchng.com/Forex-crisis-Marketers-propose-N720/litre-suspend-fuel-imports

Guys why is no one talking about the Dangote Refinery that was said to be fully operational by July, 2023?

The problem is dollar will continue to rise as long as we import petrol now petrol prices and dollar are tied since we are using the international benchmark to set petrol prices here. At the long run subsidy can not go in it entirety else the economy will come to a comatose as petrol prices directly affect every
Other prices of goods and services