Nfora:


Me too just de wonder oo
So where is the N6tr o called subsidy money coming from or going into?

And how come FG is owing NNPC N2.8trillion subsidy money?

Government magic

obinnanelson4:
If they have been engaging in crude swap for refined pms, why then is subsidy in the picture all these while. Or is it that i do not understand what swap means?

Proudlyngwa:


When other alternatives come into play, supply will be excess and price will drop.

Forget OPEC, cost of drilling varies from location to location, not everyone is an OPEC member
Cost of refining and transportation also varies.

And if Nigerian investors were wise, they will invest in hybrid carburetor.

GENES11S:
Why would you even swap crude that comprise of many products just for petrol?

To make make matters worst, you still pay heavy money to subsidized it. That's the biggest scam known to man

pappilo:




There is money value of the exchanged goods to balance for the books. its not simple trade by barter.

Assumptions for calculation sake
1 barrel of crude is $100
1 litre of petrol is $2
You can get 150 litres from each barrel

x NNPC gives Trafiguara 1 barrel of oil
x Finished cost of 1 barrel turned to petrol is $300
x Trafigura will only provide 50 litres of petrol to NNPC for every barrel
x On NNPC books they now have $100 worth of petrol (50 litres) instead of the $100 they should have received for the crude
x They sell the 50 litres to the public at a subsidised $20
x The govt still has to make up the $80 shortfall

That is SUBSIDY

Coolsat:
We may all end up loving this man called Bola Tinubu.

pappilo:




There is money value of the exchanged goods to balance for the books. its not simple trade by barter.

Assumptions for calculation sake
1 barrel of crude is $100
1 litre of petrol is $2
You can get 150 litres from each barrel

x NNPC gives Trafiguara 1 barrel of oil
x Finished cost of 1 barrel turned to petrol is $300
x Trafigura will only provide 50 litres of petrol to NNPC for every barrel
x On NNPC books they now have $100 worth of petrol (50 litres) instead of the $100 they should have received for the crude
x They sell the 50 litres to the public at a subsidised $20
x The govt still has to make up the $80 shortfall

That is SUBSIDY

Vision101:
@obinnanelson4
If they have been engaging in crude swap for refined pms, why then is subsidy in the picture all these while. Or is it that i do not understand what swap means?

@me
Crude swap means that:
The nnpc sales crude oil at international prevealing market price.

Uses the money realized to buy pms at the international prevealing market price.

Add the associated cost up to depot.

Total cost plus margin ought to be their selling price. But they sell below the total cost because the price is regulated.

The government will now be obliged to refund them thus: total cost minus the local pms price.

The amount refunded by government is the subsidy. Government has been saying that they don't have money anymore to pay it. They have been borrowing to pay it.

The crude swap was allowed because cbn has not got enough fx to sell for pms import. That was why nnpc was allowed to be the sole importer.

Further note that the amount paid for subsidy belong to the federation account. Hence about 38% of consumption take place in Abuja, Kano and Lagos because of population, number of vehicles and economic activities the states with lesser consumption are shortchanged. Their money is being used to subsidise consumption in those three locations.

If subsidy is removed, their money will be released and if the leaders are prudent they can pay regular salaries and develop more.

Our labour movements are just old school. Everything to them is aluta and strike. I think they need good consultants that are unbiased to advise them.

They should engage the government on what next. Removal of subsidy will favour labour in the midium and long run. There will be creation of jobs by the private sector in the petroleum sector.

garriAndsugar:

If dangote refinery was coming up next month why would the commander in thief remove subsidy this month when he can just wait one more month. Continue to believe governmental lies at your old age

Hespee93:


You people have resume this scamming again.

Building a funtional website with back end developmet, not eve web designing for 10k.

Be deceiving yourself.

SalamRushdie:
Wait so we were swapping crude for petrol and then still claiming to pay subsidy? People need to be shot at firing squads

kokomilala:
@garriAnd sugar, man, come on! You and the people who shared and liked your response are being disingenuous.

Tinubu didn't not end the subsidy regime. Buhari technically ended it by paying up to June. Tinubu only announced its demise.

I think it was Shehu Sani who had opined before May 29 that Buhari had set traps for Tinubu. Buhari could have handled the issue in such a way that Nigeria would be exiting the subsidy regime by the time Dangote refinery starts refining, which is August. So, in effect, Buhari could have paid up to the end of July. But no, he decided to pass the problem to the next government.

garriAndsugar:

If dangote refinery was coming up next month why would the commander in thief remove subsidy this month when he can just wait one more month. Continue to believe governmental lies at your old age

garriAndsugar:

If dangote refinery was coming up next month why would the commander in thief remove subsidy this month when he can just wait one more month. Continue to believe governmental lies at your old age

sreamsense:

And tell me how best you think your 3rd class online president sleeping at Tribunal would have done it using his trail and error approach.

seunmsg:
As many importers as possible should be allowed to import petrol in as much as they can source their forex from the parallel market since there is no more subsidy. Once supply is increased and with Dangote refinery coming up next month, the price should go down.

SalamRushdie:


As long as we are importing the price at the international market will be the determining factor of pump price in Nigeria and when Dnagote resumes I don't see him reducing price because he will be importing crude at international price

obinnanelson4:
If they have been engaging in crude swap for refined pms, why then is subsidy in the picture all these while. Or is it that i do not understand what swap means?

Proudlyngwa:

Fuel is not sold at a unified price world wide, what is controlled is the price of crude not petrol

obinnanelson4:
If they have been engaging in crude swap for refined pms, why then is subsidy in the picture all these while. Or is it that i do not understand what swap means?

SalamRushdie:


The price of crude determines how much petrol is I'm foriegn refineries, afterall it the demand for petroleum products that will determine the price of crude eventually because it's the products the end user needs not crude

malware:


If they do the swap, the value of received petrol per litre is N500 (for example), but the Government ask marketers to sell it at let's say N200, meaning that it's the Govt that will bear the burden of the difference, amd that's what subsidy is.

Sisora:
I build investment website for 10k only or you can get the script for 5k and install it yourself.

All scripts work superbly.

I also build VTU website for 10k only or you can get the script for 5k.

I also build multivendor ecommerce websites like jumia or jiji cost 10k only or you can get the script for 5k and install it yourself.

malware:


If they do the swap, the value of received petrol per litre is N500 (for example), but the Government ask marketers to sell it at let's say N200, meaning that it's the Govt that will bear the burden of the difference, amd that's what subsidy is.

kingjoe:
did you read what you typed at all.
We have been exchanging crude for petrol all these while and some people are collecting 400 billion as subsidy.
We are only paying for transportation.and you are saying they are correct.chai chai chai

Ambitious21:


You have no brain 🧠