₦airaland Forum

benjaminlawson:
I don't understand why you people are talking out of ignorance, for what purpose is 3.6 trillion naira budget for subsidy this year, are they going to return it to government?. God just allowed this government to punish Nigerians, but all of them that have partake in this evil will be paid back with evil they have melted on Nigerians.

Kobonaire234:
Well, in Niger and Ghana they are 100% exposed to the forces of demand and supply, and as a result they have working refineries, and in Niger's case...they export fuel.

You are exposed to forces of demand and supply anytime you buy books, computers, stationeries, foodstuffs, etc, etc....it is only fuel that you get some protection..

As a result...we have bad refineries, because of no profit and free government money being misused.

Because the problem with subsidy is that it

INVOLVES

GOVERNMENT

FIXING PRICE OF FUEL

BELOW WHAT IT COSTS TO PRODUCE IT

And when the production cost rises, more often than not, it rises beyond the capacity of the subsidy to cover for it.

That's why most of the candidates for next year's election want subsidy gone.

[quote author=pinkasso post=119889772]So what's the benefits to Nigerians as being one of the largest oil producing countries in the world?,

Which safety net are you proposing?

And as regards removing subsidy totally that will be practically impossible forget what these contestants are saying make them enter first make we see naso Buhari say no subsidy until e enter e see subsidy by force.
If you deregulate 100% nah wahala be that oo

Kobonaire234:
Berry simple...and it boils down to what I said earlier...

When the cost of production rises , the cost of your subsidy rises....if you cannot pay the rising costs of subsidy...scarcity results, or price increases above the official price results.

Let that sink in

When the budget was made in 2021 for 2022...no one knew that Ukraine would be invaded, that we would have really hellish weather in August and September, and that all that would 1) increase oil prices 2) increase the cost of refined products 3) increase the cost of transporting them....which had a knock on effect on subsidy costs.

As a result, by September 2022, we had spent more than we did for the whole of 2021 on subsidy. To make matters worse, diesel prices have been rising for the whole year (Diesel has not been subsidised since 2013,), raising the subsidy costs esp transport subsidy costs (government pays part of subsidy to transporters...that's why in theory fuel costs the same everywhere, unlike in India and the US where costs vary from place to place)....and the subsidy costs rose beyond what NNPC and government could cover.


Thus prices rose in many parts....



To give you an idea of how bad it is...in June 2021 it cost N261 to bring in one liter of fuel. By November 2022 it was costing N510 per liter.


And Government does not have the money because it is spending more on debts, massive oil stealing has reduced our oil income, and taxation is not providing enough cash, plus they did not diversify. At the end, here we are.

sweerychick:
so why arent our refineries working if we have the money to pay for subsidy

Kobonaire234:
At 300 naira it is even still cheaper than all our African brethren except Algeria and Angola.

Also, seems apc has admitted in essence that 40 naira petrol was a lie.

Kobonaire234:
Berry simple...and it boils down to what I said earlier...

When the cost of production rises , the cost of your subsidy rises....if you cannot pay the rising costs of subsidy...scarcity results, or price increases above the official price results.

Let that sink in

When the budget was made in 2021 for 2022...no one knew that Ukraine would be invaded, that we would have really hellish weather in August and September, and that all that would 1) increase oil prices 2) increase the cost of refined products 3) increase the cost of transporting them....which had a knock on effect on subsidy costs.

As a result, by September 2022, we had spent more than we did for the whole of 2021 on subsidy. To make matters worse, diesel prices have been rising for the whole year (Diesel has not been subsidised since 2013,), raising the subsidy costs esp transport subsidy costs (government pays part of subsidy to transporters...that's why in theory fuel costs the same everywhere, unlike in India and the US where costs vary from place to place)....and the subsidy costs rose beyond what NNPC and government could cover.


Thus prices rose in many parts....



To give you an idea of how bad it is...in June 2021 it cost N261 to bring in one liter of fuel. By November 2022 it was costing N510 per liter.


And Government does not have the money because it is spending more on debts, massive oil stealing has reduced our oil income, and taxation is not providing enough cash, plus they did not diversify. At the end, here we are.

themanderon:
Stop buying into that crap that government doesn't have money. What have they been doing with the billions they have been borrowing for the past 7yrs? Serving their interests of cause. Is it not the national assembly that earmarked 30 billion for themselves as severance package? For years now they have deliberately grounded our refineries resorting to importation that would enable them to steal billions through their bogus subsidy. Why is it that none of our refineries have been working for years now? The money usually spent on subsidies every year can fix our refineries many times over but they would never do it.
If you tell me they don't have the money to service the needs of ordinary Nigerians I would say its true because they always service themselves as often as needed.

ugodson:

I told d insult i want to use for u to wait first. Are u a MUMU comparing to other Africa countries. Have u asked ur faulty brain are those countries do they have OIL? Even of they do are they the largest oil producing country like us? MUMU

Kobonaire234:
On the other hand pretending that fuel is cheap has added to our debt due to us taking loans to cover the deficit left by rising subsidy costs.

Pay market price for fuel at the pump or pay it at the World Bank is what it boils down to

James91:
what stop them from building refinery for good 8 years they are in power.

adenigga:
Source: https:///N300-Per-Litre-Price-Of-Petro-Is-Not-Bad-Petroleum-Minister-Sylva

nesphil:
N300 per liter isn't during Buhari, but N87 was bad during GEJ

Nightwolf1:
Stupid man

Stupidity go feel insulted

He said he would not mind paying N300 for pump price, he has forgotten that he is earning far above majority Nigerians

He forgot that there is no job

He forgot that this singular act will inflate everything inflatable

These stupid leaders are just so senseless

Kobonaire234:
He does, and he is being honest, I guess.

Now, do you want government setting the price of anything you sell? To help the poor y'see..?

Pickmycall:
Do you see him whenever he buys fuel?

Kobonaire234:
Do you sell things at less than the price you bought them so that you can help the poor.?