₦airaland Forum

PLS HOW MUCH IS THE COST OF BUILDING NEW REFINERY?

Dumb leaders, as long as you can’t fix your refineries and you import, you will continue to pay subsidies

ednut1:
will you people pay the market price

Ode, I thought the president told ya all that subsidy payment na scam.
Why still pay subsidy till date??

Lordave:
I don't understand, why is the govrnment paying subsidy with fuel at N165.

If Nigerians weren't deceived then in 2012 then petrol sold for N144, Nigeria would have beyond this subsidy brouhaha at least 7 years ago.

I don,t trust this booohari banditry government, they could be diverting this N102bn subsidy funds into Bandits account while we foolishly look on down South.

Because N165 per litre is not the market price for the imported fuel. Check how much it is sold in international markets and then convert to Naira and you will understand that Nigerians are paying well below market rates for their petrol. Even at N212 per litre, we are still selling well below our neighbours in West Africa.

Things will never be OK in this country as long as everyone wants to fill his pocket! It is as simple as paying a contractor to build it but if the refinery will cost $1billion the govt must budget $10billion you know the reason

Subsidybad21:
Assuming Buhari really removed subsidy in 2015, FUEL would have been costing over 200 naira per liter by 2016.

And he would have been voted out by 2019.

Subsidy is not something any Nigerian leader wants to remove...it is too expensive politically.

So why did your darling president told Nigerians back in 2014 that subsidy was a scam?

nezer83:
So why did your darling president told Nigerians back in 2014 that subsidy was a scam?

Because your darling Buhari was playing politics as usual.

I don't back apc or pdp, good sir

Subsidybad21:
If Buhari was not subsidisng fuel, fuel would have been near the N300 mark by now.

PLus he said there was nothing like subsidy simply because he did not udnerstand how a subsidy worked then.

Oh!! Now the excuse is that he did not undertand subsidy back then.
Granted, but when did he apologies for deceiving Nigerians in this issue

Subsidybad21:
Our budget is 26 billion dollars. Oir reserves are at 40 billion dollars. No spare ten billion available.

Plus if you build a refinery and then don't deregulate the downstream sector, in five years it would be broken down

The federal govt is proposing to spend #400 billion ($1.2billion) this year on N power in 2021. I am thinking the gvt had spent approximately $4 billion dollars since 2017. I feel this is a wasted funds because same batch A and batch B beneficiaries are back to the labour market. Again imagine the cumulative huge funds gvt is paying on fuel subsidy monthly since 2015. Supposing this money is channeled on building a refinery. We should have reached a milestone.

Kubernetes:
The federal govt is proposing to spend #400 billion ($1.2billion) this year on N power in 2021. I am thinking the gvt had spent approximately $4 billion dollars since 2017. I feel this is a wasted funds because same batch A and batch B beneficiaries are back to the labour market. Again imagine the cumulative huge funds gvt is paying on fuel subsidy monthly since 2015. Supposing this money is channeled on building a refinery. We should have reached a milestone.

Yes we should have done that.

But at the end of the day programmes like Npower and its predecessors sure p and so on are popular with the people because free money and the government because free votes and free popularity

989900:
They are paying subsidy so that we won't know how bad our lives have been damaged by their cluelessness and greed.

So, they technically pay subsidy for us, Benin Republic, Cameroon, Niger . . .

Imagine if they don't pay subsidy, then PMS will be north of ₦220/litre, inflation will kick-in even harderrrr, then you and I (the police, DSS, NSA, Army, Navy, Airforce, EFCC, NLC, TUC, NANS, churches, mosques, etc.) will take to the streets chanting or secretly wishing "Buhari must go!"

So, subsidy must be paid to cover and preserve the ineptitude of Gen. Buhari's administration.

You can't get cheap fuel when your currency is in tatters -- courtesy of Forex for importation of refined petroleum products bourne by lack of refining capabilities in an oil producing country of over 200m!

Good point.

But then should we remove subsidy?

Despite all the corruption inherent in subsides for fuel, generations of Nigerians won't support its removal.

We could have removed it during GEJs time. Easily even with high income from crude oil then.

Nigerians said no.

Subsidybad21:
Which is why subsidy MUST go and the marketers and importers and refiners set the price of petrol

How many times will subsidy go?

419

Mrpojj:
How many times will subsidy go?

Subsidy will go when the government stops controlling the price of fuel and stops forcing NNPC to subsidse fuel with its money...AND allows everyone to import fuel until the private refineries get on line.

ecclize:
someone should be enlighten me.
I could remember during the GEJ the pump price was increased bcoz the govt of the day want to stop subsidy.
Now this govt pay for subsidy and price keep going up.
is there anything am missing?

My brother, there is nothing u are missing o.
This Buhari led govt is just telling us how foolish Nigerians are, especially the educated ones among us.

They should divid this country and give me my share even if it's 2 plots of land gets to me I'm ok with it.

Kriss216:
But Buhari said Subsidy is scam pre 2015 General elections

He wasn't benefitting from the scam then. Now he is the grand commander

This govt is full of sh*t. Didn't Buhari say that subsidy is corruption and does not exist? We go survive sha.

Subsidybad21:
So you believed in the lie that subsidy was gone while the government was still controlling prices of fuel?

Okay

Ooh, so you are saying Buhari government is a government of lies Cos it was Buhari Government that announced the removal of subsidy

Liposure:
Fix our refineries

Zombie I site u

Useless government

Standing5:
In 36 months that can effectively build a refinery like the mega one in Lekki and correct a lot of economic errors in Nigeria.
No leader wants to do the reasonable thing(GEJ inclusive).

U just have to smuggle that name into ur distorted opinion so u won't lose out on this month allawee.

AstralBody:
Zombie I site u

you need help

The NNPC in its operational report said Nigeria consumes about 57.4 million litres of petrol daily.

In February, the Department of Petroleum Resources, DPR, put national demand for petrol, also known as petrol, at 38.2 millionlitres daily.

During the time of mister corruption aka ineffectual buffoon, Nigerians used 30million litres of fuel daily... Under mister integrity, baba subsidy is a scam.. Nigeria Now use 57million litres daily, more than 26million litresdifference.
If u calculate the differentials and multiply it by the amount of naira used in subsidizing every litre of petrol then you will know why buhari the grandiose crook is still holding firm to the exalted position of honorable minister of petroleum.
If we wail Now, they will come up with theories that can't even fix running nose.
So pathetic that we allow such anomalies continue all because we don't want to offend our lord and personal saviour Mohamad buhari

Standing5:
If subsidy is removed and crude oil products are priced freely by market forces, the citizens end up groaning.

The most reasonable solution is to cut out unnecessary middlemen adding their own cut to the final prices in a free market situation by building or maintaining efficient refineries.

God bless you brother, some people will just type just to type.. It's either subsidy remains or price goes up or we wait patiently for d the private refineries to come to work or we find a way to rehabilitate the refineries. I think nigeria does not have the monetary capacity to build 4 new refineries for now.

Aflix:
Ooh, so you are saying Buhari government is a government of lies Cos it was Buhari Government that announced the removal of subsidy

And you beleived their lies>

You guys better stop believing all politicians. Politicians lie.

-nigeria-to-spend-n103-billion-monthly-on-petrol-subsidy.



ABOUT N3 billion to each of our 36 CONSTITUTIONAL STATES monthly to uniformly develop their ECONOMY.


Buharinomics is a waste.

Subsidybad21:
When we were refining fuel at home there was a subsidy in place.

NNPC sold fuel below the production price to marketers. Marketers in turn got paid an equilization fund to keep prices of transporting fuel low.

At the end of the day therw wasn't enough profit to keep the refineries running. Add the fact that NNPC workers get paid whether refinery works or not, and thus the refineries failed and we had to import

And because Nigerians don't want to pay market price for fuel, imported fuel too got subsidised.

Subsidy happens because poor Nigerians don't want to pay the actual cost of petrol. Rich Nigerians want free money. Subsidy meets their needs well well.

Check your history, we didn't have spontaneous arbitrary increases in price of PMS in past administrations like this one, that's my point.

Subsidybad21:
When we were refining fuel at home there was a subsidy in place.

NNPC sold fuel below the production price to marketers. Marketers in turn got paid an equilization fund to keep prices of transporting fuel low.

At the end of the day therw wasn't enough profit to keep the refineries running. Add the fact that NNPC workers get paid whether refinery works or not, and thus the refineries failed and we had to import

And because Nigerians don't want to pay market price for fuel, imported fuel too got subsidised.

Subsidy happens because poor Nigerians don't want to pay the actual cost of petrol. Rich Nigerians want free money. Subsidy meets their needs well well.

All because of a racket that wants us to import fuel and ship them on trucks instead of pipelines and rail, they sight refineries far away from raw material, when basic economics say a manufacturer should sight their factory close to their raw materials to lower costs.

You see its not about the international market its about incompetence in leadership and greedy cartels, just like diamond cartels that hoard diamonds in underground vault to make the price of a cheap stone exorbitant.

Read more friend.

quentin06:
Check your history, we didn't have spontaneous arbitrary increases in price of PMS in past administrations like this one, that's my point.

We did.

Gej for example increased prices from N65 to N141 in 2012

Peotests ledto a reduction to 97 naira and then to 87 naira by 2015(cost us 4 trillion naira in subsides to keep it there which is why GEJ wanted to increase the price from 65 to 141in the first place)

We always have. Or else if you were right fuel would still be costing 75 kobo today as it did in 1990.

quentin06:
All because of a racket that wants us to import fuel and ship them on trucks instead of pipelines and rail, they sight refineries far away from raw material, when basic economics say a manufacturer should sight their factory close to their raw materials to lower costs.

You see its not about the international market its about incompetence in leadership and greedy cartels, just like diamond cartels that hoard diamonds in underground vault to make the price of a cheap stone exorbitant.

Read more friend.

And the reason why they wont site refineries here is because subsidies and price controls means they won't make more of a profit.

Even the importation makes them lose money which is why they used to smuggle and steal abd lie about imports because it was the only way they could make money

Keep in mind. You cannot refine fuel and then sell it below what it cost to produce it. That is what we did that led to our refineries being the mess they are.You cannot import fuel and sell it below what it cost to make it which is what NNPC has been using most of its profits to do.

Deregulation is the answer