efisher:

There is a world of difference between subsidizing by directly injecting money to suppress price AND reducing VAT on goods / services. In the first case, the government has to make a cash out. In the latter case, the government gets some money but only reduces the amount it gets. I.e. Only the tax is subsidized. Can you really qualify that as subsidy? It's like buying items and getting your tax free as a tourist. Will you also call that subsidy? The government doesn't have to pay anyone any money. That's all!

Our case was just pathetic - jetting out billions of scarce resources without focus or direction. It's just like throwing money on the street and keeping people as beggars for life. The government has by this switched from giving the populace fish to teaching them how to fish. Many may not believe the "teaching them how to fish" part due to distrust for government. you can't blame anyone for not believing the govt because we've been mal-treated for ages. It is no longer an issue of promises but of tangible results. We'll see about that by the end of 2012.

The bolded brilliantly encapsulates the progressive argument for the removal of subsidies.

Hi folks pls I have got a question.
So the locally refined fuel will be sold to us at same price
with the said "imported" fuel. - N141.00?
Don't forget our refineries can provide for our local consumption needs.
The more you look, the less you see - Abracadabra

There really. Was no subsidy in the first place.check this out:
1) One barrel of Crude oil = 42gallons or 159 litres
2) Our Refineries (i.e 4) Installed (combined)
capacity = 445,000 barrels per day
3) Actual refineries capacity due to
mismanagement = 30% i.e. 133,500 barrels per
day.
4) . . 133,500 barrels = 21.2 million litres
5) Local required consumption (F.O.S) = 12millions
litres
6) It means that even our MORIBUND refineries can
actually meet our local consumption need of
petroleum.
7) The cost structure of crude oil (i.e. Qua Iboe
Crude Oil) production;
- Findings / development - $3.5
- Production cost - $1.5
- Refining Cost - $12.6
- Pipeline/transportation - $1.5
- Distr/bridging fund Margin -$15.69
True cost of one litre of petroleum anywhere in
Nigeria;
- Total sum cost = $34.8
- 1ltr cost = $34.8/159 litres = $0.219
- Naira equiv.:$.219xN160= N35.02k
- Add Tax N5 + N35.02 = N40.02
9) Let FGN refute the above composition and if not,
they should tell us how
they came about N65/litre.
10) Locally refined products cannot be sold at
International price.
11) We really do not need FGN SUBSIDY as there
was NONE in the first place.
12) What is LACKING, is the WILL to enforce LAW
ON CORRUPTION

Haaaa! Wahala don dey o, this is not fresh air o,this is gonna be too stuffy for nigerians.

Gej transformation agenda

Just got @ 65naira. We still ve some good men that are not taking advantage

efisher:

There is a world of difference between subsidizing by directly injecting money to suppress price AND reducing VAT on goods / services. In the first case, the government has to make a cash out. In the latter case, the government gets some money but only reduces the amount it gets. I.e. Only the tax is subsidized. Can you really qualify that as subsidy? It's like buying items and getting your tax free as a tourist. Will you also call that subsidy? The government doesn't have to pay anyone any money. That's all!

Our case was just pathetic - jetting out billions of scarce resources without focus or direction. It's just like throwing money on the street and keeping people as beggars for life. The government has by this switched from giving the populace fish to teaching them how to fish. Many may not believe the "teaching them how to fish" part due to distrust for government. you can't blame anyone for not believing the govt because we've been mal-treated for ages. It is no longer an issue of promises but of tangible results.  We'll see about that by the end of 2012.

Look stop deceiving yourself mate! The simple result of what you described is this: The citizenry get the basic essentials at much cheaper cost so as to enable them have enough cash in their pockets to spend. THAT IS SIMPLY CALLED SUBSIDY! WHETHER YOU DO IT THE CLEVER WAY THE UK OR FRANCE DOES IT, OR THE STUPID WAY NIGERIA GOES ABOUT WITH HERS, ITS CALLED SUBSIDY stupid!!

However you choose to look at the Fuel subsidy, it is simply a case of what we call 'Design Default at concept' because those that designed the system simply care more about HOW MUCH they will make out of it, hence the reason several checks and safe gaurds were never built into the whole process!

No body is saying subsidy shouldn't go, but the bigger question that deserves answer is this: What do you intend to do with the savings to be made? The government released a document of what they intend to do with the money, lo and behold, it is ridden with projects already appropriated for in 2010, 2011 and in 2012! Who is fooling who?

its official, fiiling stations across Lagos are shut down. those of us who had advance warning were the only ones lucky enough to get fuel.


prepare for interesting times

fresh air 2012!!!!

what next

Everyone should take a deep breathe abeg. Now that it is an issue that touches you guys, you are all hyperventilating here. When we complained about tolling on Lekki road and how it impacts negatively on the people, you all said it was DEVELOPMENT and that those of us complaining are PDP politicians. Can the same be said of this move? Is it development and all you guys complaing ACN- guys?

Personally, after that Lekki toll thing, I've resolved that it's not worth fighting for the masses on anything. Politics and tribalism blinds too many people

Beaf:



Yes, tell Gbawe to go and close Oando; they are selling fuel for N141.

My guy , I will never take you for a joke any more after you stated confidently yesterday that subsidy was gone and that is precisely what happened today. In fact, I will start using IP scrambling software from now on. I don't want you and you fellow paid PDP goons appearing at my door any time soon .

Unlike you, I have no affiliation with any politician. I fully back the closure of Oando filling Stations selling at N141.00/L till Government restore subsidy (worth only N240 billion according to Femi Falana) rather than taking the cowardly route of punishing Nigerians for its own inability to fight scammers who are exploiting the system , with the support of your oga's regime, to the tune of over N1 trillion !!!!! Folks should shut Oando down !!!!! Na Gbawe talk am. I will be in Naija in a few weeks and will join anything going down - plus take pictures !!!!

Tinubu will probably not mind Oando losing some change if that is what it will take to convince the Government to stop taking Nigerians for a ride. Anyway, I have no time for you. Remember how I told you terrorism would bog down GEJ and you bragged the "almighty" Presidency would overcome? Who is right today 'buddy'? I have made another prediction. Watch and see. Note what is going on worldwide to understand that the only option open to the world is to support the people when they get behind those fighting the "callous" and "wicked" government "living in hideous luxury" yet unable to empathise with those who live in poverty and deprivation.

Nigerians are hopeless.

The One:

Everyone should take a deep breathe abeg. Now that it is an issue that touches you guys, you are all hyperventilating here. When we complained about tolling on Lekki road and how it impacts negatively on the people, you all said it was DEVELOPMENT and that those of us complaining are PDP politicians. Can the same be said of this move? Is it development and all you guys complaing ACN- guys?

Personally, after that Lekki toll thing, I've resolved that it's not worth fighting for the masses on anything. Politics and tribalism blinds too many people

paddy_lo:

[b]ok lets see. . In the past one yr, the price of crude has gone up,while the local currency the naira has depreciated in value

Yet the price of petrol(PMS) has been held artificially steady at N65.

Ladies and gentlemen this is no way to run an economy

There is no incentive to conserve the use of fuel as prices rise

no incentive to develop alternative sources of Energy,like EVs or SOLAR

Think for a moment if the US Govt came out after the personal computer was invented in 1980 and decided to intervene (and set prices)cause the cost was to high for the masses, there would be no apple,HP,Microsoft and all other IT innovators today that have brought down the price of a pc to commodity status

Again think for a moment,why subsidize fuel?.why not bread,cement, drugs. etc,the whole subsidy game is a slippery slope,that the GOVT best not get involved in.

Cheap fuel is a license to non critical reasoning,thats why the Europeans have huge taxes on fuel,so mass transport can bloom,the environment saved,and alternative energy developed.

Nigerians say they have Crude in their backyard so PMS should be cheap, but can they refine the crude by themselves without importing machines made elsewhere?, can we build a refinery without outside help?,if the answer in no we cant,then we dont deserve cheap fuel.

Let us get innovative for once,build this economy into a knowledge based one,and stop this laziness of the brain and body that we exhibit time after time

so yea am or subsidy removal,perhaps it will clear our cities of okada,and instead have us build trains,trams and subways

perhaps the next great invention like a car that runs on water or air will come from Nigeria. .

who knows. .

Happy new yr!![/b]

Do you ask yourself why MEND was able to set up several local refinaries 'modules' and were busy refining crude in the creeks, yet our FG in the past two years can not get out existing refinaries working? Yes granted even if our local refinaries were all working at 90% capacity, according to the FG, it still would not meet our consumption needs daily, (we know this is all lies anyway) but what stopped them from granting free duty waiver for machinaries to be used for the construction of small modules with local refinaring capacity

that mudaphuckin bastard/dullard! son of a thousand basted fathers called jonathan. the facker increases the budget for security(read security vote) for his likes and removes subsidy for the masses!

what is this years budget on security? if they was no bokoharam will subsidy still be removed? considering the amount budgeted on them! bloody drunken fisherman with his certificate buying wife and that dull good for nothing biatch called dieziani or whatever her cretin name is!
the damm supermarkets round mi house have all closed!

Clueless dayo wants bench outside
Tot he has balls
Only knows how to rain abuses.

Omo_Tier1:

YOU ARE REALLY DAFT! simples, you can not distinguished between Price Control as advocated by PPPRA and price control on Alcohol/cigarettes in the UK? You have no sense of what price control as an economic toll really means!

Am I all too surprised? Absolutely not. You are as shallow as your pay master and I have made this clear to you before. Just like your GEJ could not convinced Nigerians on why He needs to remove Fuel subsidy (Something I can don even if you wake me up from sleep 12am), it is not all too of a no show that He employs electronically certified idiots like you to troll the web.

As Gbawe has rightly pointed out, your wicked at heart and a shameless ! Go through this thread of over how many pages and see how popular your view points are.

Go figure out when you can, When you deregulate, that mean, your power to set prices go out of the window, market forces of demand and supply dictates the price! Unless you bring about an intervention like subsidy or Tax breaks like the UK does, you can not have the moral ground to talk about price tag!

Virtually everything in the UK is subsidized directly on indirectly. Go figure out what tax breaks on month income on families, co-habitting couples etc are all about before you come run your filthy sycophantic mouth!

Stop talking like a malnourished toad.

You claimed that the UK subsidises fuel with reduced VAT! GBAGAUN!!!!!
You then further claimed that the UK has no price controls and the UK National Health Service (NHS) subsidises alcohol and cigarrattes! GBAGAUN!!!!

The UK does not subsidise fuel, instead it is taxed; in fact more than half the price of a litre at the pump goes to govt as taxes.
No developed country would do something as id!otic as subsidising fuel for consumption, that sort of fuckry only occurs in places like Nigeria where carpenters, hunters and rewires can aqcuire "Toronto" degree's from Oluwole and begin to lord it over genuine people. No industrialised country will subsidise fuel for consumption, that is the same as subsidising indolence.

All developed countries subsidise productive sectors of their economies like research, space industries, defence, health, manufacturing etc.

A lying baboon like you would not even understand that subsidies are meant to be a strategic economic tool meant to achieve measurable goals and steer the economy in particular directions. Here is a succint defintion:

A subsidy (also known as a Render) is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributed as subventions in an industry to prevent the decline of that industry (e.g., as a result of continuous unprofitable operations) or an increase in the prices of its products or simply to encourage it to hire more labor (as in the case of a wage subsidy). Examples are subsidies to encourage the sale of exports; subsidies on some foods to keep down the cost of living, especially in urban areas; and subsidies to encourage the expansion of farm production and achieve self-reliance in food production.[1]

Subsidies can be regarded as a form of protectionism or trade barrier by making domestic goods and services artificially competitive against imports. Subsidies may distort markets, and can impose large economic costs.[2] Financial assistance in the form of a subsidy may come from one's government, but the term subsidy may also refer to assistance granted by others, such as individuals or non-governmental institutions.

http://en.wikipedia.org/wiki/Subsidy

Please, learn in silence.

paddy_lo:

[b]ok lets see. . In the past one yr, the price of crude has gone up,while the local currency the naira has depreciated in value

Yet the price of petrol(PMS) has been held artificially steady at N65.

Ladies and gentlemen this is no way to run an economy

There is no incentive to conserve the use of fuel as prices rise

no incentive to develop alternative sources of Energy,like EVs or SOLAR

Think for a moment if the US Govt came out after the personal computer was invented in 1980 and decided to intervene (and set prices)cause the cost was to high for the masses, there would be no apple,HP,Microsoft and all other IT innovators today that have brought down the price of a pc to commodity status

Again think for a moment,why subsidize fuel?.why not bread,cement, drugs. etc,the whole subsidy game is a slippery slope,that the GOVT best not get involved in.

Cheap fuel is a license to non critical reasoning,thats why the Europeans have huge taxes on fuel,so mass transport can bloom,the environment saved,and alternative energy developed.

Nigerians say they have Crude in their backyard so PMS should be cheap, but can they refine the crude by themselves without importing machines made elsewhere?, can we build a refinery without outside help?,if the answer in no we cant,then we dont deserve cheap fuel.

Let us get innovative for once,build this economy into a knowledge based one,and stop this laziness of the brain and body that we exhibit time after time

so yea am or subsidy removal,perhaps it will clear our cities of okada,and instead have us build trains,trams and subways

perhaps the next great invention like a car that runs on water or air will come from Nigeria. .

who knows. .

Happy new yr!![/b]

abegi - tell that to the govt that cannot enage in belt tightening, much less critical thinking

who will build the trains and trams you are on about? the FG of empty promises?

the FG that has STILL NOT BEEN ABLE TO KEEP ANY OF THEIR PROMISES ON  POWER?

what sort of critical thinking will resolve the fact that 90% of the energy i use is from petrol? buy an inverter? where will the power to charge it come from? buy solar cells? so what about the batteries that i will replace every 9 months?

the critical thinking you are ging on about is the responsibility of the government who can only think about how to give themselves 1billion naira fesding budget

as to conserving the use of fuel, most nigerians already conserve the use of fuel, in any way they can.

Well! Well!! Well!!! This is Fresh air that just blows transformation into Nigeria. Happy new year all.

Taken at NNPC Ikoyi Mega station

I just heard from a friend that tfare from Enugu to Lagos is now N17,000. kai some  people will be stranded in East be that o!

its is simple. choose between your generator and your car.

Gbawe:

My guy , I will never take you for a joke any more after you stated confidently yesterday that subsidy was gone and that is precisely what happened today. In fact, I will start using IP scrambling software from now on. I don't want you and you fellow paid PDP goons appearing at my door any time soon .

Unlike you, I have no affiliation with any politician. I fully back the closure of Oando filling Stations selling at N141.00/L till Government restore subsidy (worth only N240 billion according to Femi Falana) rather than taking the cowardly route of punishing Nigerians for its own inability to fight scammers who are exploiting the system , with the support of your oga's regime, to the tune of over N1 trillion !!!!! Folks should shut Oando down !!!!! Na Gbawe talk am. I will be in Naija in a few weeks and will join anything going down - plus take pictures !!!!

Tinubu will probably not mind Oando losing some change if that is what it will take to convince the Government to stop taking Nigerians for a ride. Anyway, I have no time for you. Remember how I told you terrorism would bog down GEJ and you bragged the "almighty" Presidency would overcome? Who is right today 'buddy'? I have made another prediction. Watch and see. Note what is going on worldwide to understand that the only option open to the world is to support the people when they get behind those fighting the "callous" and "wicked" government "living in hideous luxury" yet unable to empathise with those who live in poverty and deprivation.

Comedy!

Abeg, put your money where your mouth is and start burning things down (especially Oando). No need to yarn opata and parade big chest on the internet.

overhyped:

I just heard from a friend that tfare from Enugu to Lagos is now N17,000. kai some  people will be stranded in East be that o!

Thats just the beginning, Food prices will go up drastically soon.

Now I wish Abacha was still alive

Beaf:

Stop talking like a malnourished toad.

You claimed that the UK subsidises fuel with reduced VAT! GBAGAUN!!!!!
You then further claimed that the UK has no price controls and the UK National Health Service (NHS) subsidises alcohol and cigarrattes! GBAGAUN!!!!

The UK does not subsidise fuel, instead it is taxed; in fact more than half the price of a litre at the pump goes to govt as taxes.
No developed country would do something as id!otic as subsidising fuel for consumption, that sort of fuckry only occurs in places like Nigeria where carpenters, hunters and rewires can aqcuire "Toronto" degree's from Oluwole and begin to lord it over genuine people. No industrialised country will subsidise fuel for consumption, that is the same as subsidising indolence.

All developed countries subsidise productive sectors of their economies like research, space industries, defence, health, manufacturing etc.

A lying baboon like you would not even understand that subsidies are meant to be a strategic economic tool meant to achieve measurable goals and steer the economy in particular directions. Here is a succint defintion:

http://en.wikipedia.org/wiki/Subsidy

Please, learn in silence.

A classed idiot, like your slowpico GEJ, can't comprehend why economies here run with common sense! VAT,Tax Breaks are subsidies tools that you can use more effectively more than you would do your corrupt cash injection module approach your crooked leadership uses.

Inglorious numpty, you think leaders here think pocket first when they formulate policy?, Your claimed price control on Alcohol/cigarrettes are no price control in your Nigerians sense and contaxt! They are price control to keep the NHS subsidy within budget and sustainable. I know sycophants like you know how to spin FACTS but sorry not this one!

I thought boko haram would drop a bomb today, i didnt know the FG would do the job themselves  

engineerd:

Thats just the beginning, Food prices will go up drastically soon.

There will be some pain, which is regretable. But it will turn for the better in the near future as the money saved is channelled into productive areas.
There is going to be very massive job creation in the millions this year as the FG promised the day before yesterday.

did someone just say near future? where has the future been for Nigerians for he past 52 years?

I keep hearing government is broke. Which government are we talking of? Nigerian government or Greek government. I was sitting a while ago with my Irish mate, he was reading the economist and he said to me, your country is in the news again. The summary of the story was $8 to $9bn is syphoned from the Nigerian economy annually by corrupt government officials.

I have sat and listened to a lot of posts about the fuel subsidy removal. I agree it has it's pros and cons like some people have rightly pointed out. But a fundamental question remains,"how does this affect the economy as a whole?"

Almost everything done in the country is tied to fuel, I do not know if the government realizes this. Increase the price of fuel and prices of most goods and services would go up. What has the government of the day put in place to cushion this? For instance we are all aware that all available means of transport in the country depends on fuel, what has the government done to alternate this? We also know most times most homes power their houses with generators that run on fuel, what has the government done to save them not having regular power supply?

I have heard some people say that subsidy is not good but i ask what government in the world doesn't apply some sort of subsidy. From figures i have seen and posted in the past, countries who have crude oil as a major resource apply subsidy in the sale of PMS. We all a few months back joined in crucifying Ghaddaffi but apparently the tyrant knew the effects of not subsidizing PMS.

Some pro government pundits have said we should trust the government that the pain would be for only a while, the savings from subsidy removal would be used judiciously but i ask how can you trust a government that said it would not remove the subsidy until April but goes ahead to remove it on the first day of the new year? Same government that has spent billions on fixing the power issue in the country but still a lot of Nigerians don't have power supply. A country were security votes makes up the biggest part of the budget and yet BH goes around threatening the lives of the citizenry.

To be honest I reckon this might be the last straw. May GEJ not be the one to divide Nigeria!!!

One more thing, to all those who keep saying God help us, God would not come down from heaven to sort us out, we have to do it ourselves. History speaks for herself. When people want to move forward, they stand up for themselves.

Omo_Tier1:

A classed , like your slowpico GEJ, can't comprehend why economies here run with common sense! VAT,Tax Breaks are subsidies tools that you can use more effectively more than you would do your corrupt cash injection module approach your crooked leadership uses.

Inglorious numpty, you think leaders here think pocket first when they formulate policy?, Your claimed price control on Alcohol/cigarrettes are no price control in your Nigerians sense and contaxt! They are price control to keep the NHS subsidy within budget and sustainable. I know sycophants like you know how to spin FACTS but sorry not this one!

The one redeeming grace of a unicellular brained nematode like you, is that while you find it extremely difficult, you at least learn slowly.
Some pages ago, when you learnt the fuel would be price controlled; against all commonsense and informed admonition, you began id!otically arguing that there were no price controls in the UK. Thank God you've seen the light; it is the job of the more exposed ones to help stones and rocks like you. Its a tough task but we must continue to teach, teach, and patiently teach.