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Nairaland Forum / Nairaland / General / Politics / Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas (17713 Views)
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Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 12:34pm On Dec 22, 2022 |
annisy: Then stop complaining about the status quo. Simple. You cannot sell fuel at a cost below its production and expect to have enough profit to keep refineries working. Hard truth. Venezeula sells fuel for N40 equivalent. In the over ten years since they did that...their refineries have collapsed. Iran sells fuel cheap....and at the end, their national debt makes ours look like chicken feed. Either we pay for the fuel at the pump...or we pay it at the IMF HQ...surrendering our economic security for cheap fuel Or we remove subsidy, and the profit fuells job growth directly and indirectly, and more poor people get employed reducing the chances of crisis. Plus more investment |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by prophetfire: 12:40pm On Dec 22, 2022 |
agadez007:. Worst hypocrites in the whole universe. Follow spirits kill, follow humans come for condolence. Shoot in the bush, run come road begin ask you "who shoot?" |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Elidrisy20: 12:42pm On Dec 22, 2022 |
No who be this petroleum minister sef? |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Yadid(m): 12:46pm On Dec 22, 2022 |
Kobonaire234: Salient points you made here, but don't forget that the NNPCL and the government are both very dishonest. Reports are rife about how they inflate the figures of the actual amount of imported prtroleum products so they can steal more money. You are likely to say that that loophole will be plugged through the removal of subsidy, but how do you expect the citizenry to trust these dishonest folks? What is the assurance that the money realised from scrapping subsidy will not be looted through other means? Do we still not have these dishonest and corrupt people in charge? Have we considered that with the removal of subsidy, there might still be other means of looting the country in the same oil sector? I submit to you that corruption and dishonesty is the major problem here. My head supports the removal of subsidy but my heart tells me that these folks cannot be trusted one bit. They are full of lies and deceits. PS: Any government that will remove subsidy should reverse all the tax increments that Buhari has carried out, open the borders (in the real sense of it, not on the pages of newspapers) and lift the embargo on essential commodities. 3 Likes |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Gilgil: 12:50pm On Dec 22, 2022 |
Your statement of "GEJ was right in a way" needs to be explained further. In which kind of "in a way" do you mean? Kobonaire234: |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by angelina08(f): 1:00pm On Dec 22, 2022 |
Hi there, What a fascinating article! I appreciate your insights into the economic realities that Nigeria is facing regarding fuel importation and subsidization. It seems clear that something needs to change to avoid the situation continuing as it has for decades. You are correct in saying that good economics cannot come from importing fuel at N510 and selling it at N148 and paying a subsidy - this only serves to cover losses and increases production costs which do not benefit anyone in the long run. The DSS move did not achieve much either. As you said, lipstick on a pig won't do anything more than make it look prettier; people were still unable to move products out because they couldn't afford to do so. It's also true that price controls are not the solution either - it would only lead to a shortage of fuel and increased smuggling and black market prices, thus creating an even bigger problem. I think Nigeria needs more transparency so people can understand where their money is going, along with implementing better infrastructure, enabling smoother transportation of commodities. By doing this, subsidies could be put towards projects that benefit citizens, like repairing roads and building schools. 1 Like |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 1:25pm On Dec 22, 2022 |
Lol thought they claimed they had 50billion Litres in their depot |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 1:36pm On Dec 22, 2022 |
tabaralph: All of you keep on saying nonsense without having a deep thinking. Fine It's a welcome development If subsidy has to go and large chunk of the proceeds be used for development of Infrastructures. But will this be the Case? You and I know the money would end up in private pockets. Secondly you keep comparing this Oil situation to that of Telecom. Ever since the Diesel & Kerosene were deregulated, Have the price decreased since we now have competitive marketers bringing It In? Even the Telecom charges are very costly these days but the thing Is Stable Service is assured even though It Is POOR SERVICE. To buttress my point concerning the Telecom Sector, They secretly Increased the prices of their service and yet decreased the Content being offered to the Customers. Eg 1GB of data now amounts to 100MBs but come at an Increased price. This Is exactly the Same fate that await PMS, Nigeria has no structure and pity for the Gullible People. If Subsidy Is finally removed, Fine PMS will start being available all the time but It will keep Increasing in Price with POOR CONTENT sold to the gullible and helpless masses. One doesn't need to attend the four walls of a classroom to comprehend some happenings around the world provided you have an high Intellect. With observation, one would get his/her answers. Nonsense. 2 Likes |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Agbegbaorogboye: 1:51pm On Dec 22, 2022 |
In case anyone does not understand what is happening, let me break it down for you real quick. 1. NNPC the major importer is importing fuel and selling to major marketers and depot owners at subsidized price. 2. The depot owners and major marketers, in a bid to make mad and unjustified profit sell to independent marketers and retailers at cutthroat price. This is despite getting it at subsidized price. They also decided to stifle supply to create an artificial scarcity to justify the arbitrary pricing which is clearly illegal. NNPC looks away. 3. Now note that even if subsidy was removed today and fuel import deregulated, most independent marketers don't have the means and ability to bring in fuel. That will still be done by the major marketers who will then have the field day to fix prices as they desire and push to independent marketers who will in turn push to the consumers. This price gorging will end up pushing the economy down the hill to abyss like Ghana and Zimbabwe. 4. If anyone doubts me, look at what is happening with diesel that has been deregulated since 2009. The price jumped from about 200/L to over 800/L this year alone without any cogent reason. And no importer of diesel has any plans of building a refinery despite the mad profit they're making 1 Like |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Respect55(m): 1:58pm On Dec 22, 2022 |
Kobonaire234:Who hasn't allowed NNPC to make profits wile refining it here? |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:05pm On Dec 22, 2022 |
Respect55: NNPC has been forced to sell fuel below the production price for decades to 'help the poor' Thus they haven't been able to make enough profits to keep refining fuel here Thus by 2010, we were a net importer The subsidy paid to cover the loss nnpc sustains is not enough to allow it make a profit. |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by WarriorHero: 2:08pm On Dec 22, 2022 |
You still haven't mentioned the underlying cause for why the NNPC is engaging in such a bad business practice. Why does the state of Texas in the United States have 29 functioning oil refineries, but NNPC budgets billions for maintaining oil refineries yet Nigeria still has to refine its crude abroad. Kobonaire234: 1 Like |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Agbegbaorogboye: 2:11pm On Dec 22, 2022 |
Kobonaire234: Seems you did not read this part from your link “Anywhere you have arbitrage, you will have these issues. As long as arbitrage is there, you will continue to have these issues and you cannot hold NNPC accountable for it because it is a value chain that involves everything and everybody. Don't just take what suits you in the matter. Be open-minded to see the big picture |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:11pm On Dec 22, 2022 |
WarriorHero: Simple. They sell fuel below the production cost to 'help the poor'. This meant in practice that over the years , no profit to run refineries adequately In Texas, petrol is sold at a profit |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by WarriorHero: 2:13pm On Dec 22, 2022 |
Why does Nigeria not have a single functioning refinery, but Texas with a population of under 30 million has 29? Kobonaire234: |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:14pm On Dec 22, 2022 |
Agbegbaorogboye: And NNPC still brings in fuel at 510 naira. Sorry, but if you want cheap fuel, it is your choice. Me, i choose reality. You can keep on believing that fuel can be sold at 40.naira. Good afternoon. |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Agbegbaorogboye: 2:14pm On Dec 22, 2022 |
Kobonaire234:What is it with you and subsidy self. What does diesel cost have to do with subsidy Fuel costs 510/l to bring in because the refineries are not working. Go back and read that your link. It's more about arbitrage not standardized cost. Arbitrage is always subject to abuses 1 Like |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:15pm On Dec 22, 2022 |
WarriorHero: Because texas sells fuel at a profit. We dont thanks to subsidy. |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:16pm On Dec 22, 2022 |
Agbegbaorogboye: The refineries are.not working because people like you don't want fuel sold at a profit. You want it sold at a loss to help the poor. |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by WarriorHero: 2:17pm On Dec 22, 2022 |
The last time all 4 of Nigeria's refineries were working in the 1980s, they were profit making ventures. The question is why didn't the NNPC build new refineries to deal with rising demand and why did they allow the old refineries to fall into disrepair? Kobonaire234: 1 Like |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:18pm On Dec 22, 2022 |
WarriorHero: Yes because they had just been built Eventually the subsidy madness caught up with them when goverment widened the scope of the subsidy The result is what you see now. Sell at a loss.... Goverment by the end of the 1980s was making refineries sell fuel at a loss and paying a subsidy that did not cover the loss. Theresult was bad profits and bad refineries They don't do that in Texas |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by WarriorHero: 2:21pm On Dec 22, 2022 |
Is it fair that the ordinary Nigerian has to pay the price for government incompetence? Kobonaire234: |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:23pm On Dec 22, 2022 |
WarriorHero: Run for office then. Im not in goverment, and i never votedfor Buhari even. Petrol costs money. Petrol costs .money |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:31pm On Dec 22, 2022 |
Agbegbaorogboye: No, fuel costs 510.naira.because of increasing refining costs and transport costs You don't want to pay high prices for fuel. And no matter how much you miss the forest for the trees, fuel costs 510 to bring in. NNPC loses money subsidising it. Accept the truth If the refineries were working it won't cost less than 250 naira either. You want cheap fuel. Nothing wrong with that. But it is not realistic. |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by tabaralph: 2:32pm On Dec 22, 2022 |
Evolutionlove: Must you insult to pass your message across..who damaged you this way? |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Agbegbaorogboye: 2:33pm On Dec 22, 2022 |
Kobonaire234:Refining costs? Transport costs? Have you seen the template? You don't have the template do you? I'm giving you the exact words of the NNPC GMD straight from your own link and you're arguing with it. You seem to know more than the GMD who says it's all arbitrary |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:33pm On Dec 22, 2022 |
Kobonaire234: No true, we were refining fuel up to 2014, why you insist on making the arguments for continuous imports is strange to me. Its either you dont pay for your fuel or you re a crony benefiting from subsidy. 2 Likes |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by sapele914(m): 2:35pm On Dec 22, 2022 |
Kobonaire234:Correct analytics. |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:35pm On Dec 22, 2022 |
Agbegbaorogboye: You did not read the bit about how environmental laws and increased shipping costs affect the price But then again, the solution has always been deregulation |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Nobody: 2:36pm On Dec 22, 2022 |
quentin06: Well, if you want to stop imports you incentivze local production by deregulation |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by Agbegbaorogboye: 2:36pm On Dec 22, 2022 |
Kobonaire234:Lol. That's what you tell yourself. I guess subsidy is the reason over 30bn has been spent on the refineries with no results. Refinery not working is a technical/management issue not an economic issue. No. I want fuel sold at the right price to protect the economy. The poor don't use as much fuel as the rich. But the poor feel the effects of an ailing economy more than the rich. |
Re: Fuel Scarcity: Depots Dry Up, Nigerians Face Bleak Christmas by sapele914(m): 2:37pm On Dec 22, 2022 |
quentin06:Which refinery? Refining 1,105 barrels a day from a max capacity of 27,000 is not considered refining. 1 Like |
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