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Nairaland Forum / Nairaland / General / Car Talk / The Effect Of Fuel Subsidy Removal On The Prices Of Cars (57274 Views)
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Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Alvin212(m): 5:29pm On Jun 06, 2023 |
zeenaman: Use the money buy enough Pampers for una piss for body presidiot |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by solacong: 5:30pm On Jun 06, 2023 |
zeenaman: very good theory, but those who have convoy would still be able to fuel it conveniently, they are rarely affected 5 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Omoapena(m): 5:31pm On Jun 06, 2023 |
oluwatomiwa: Exactly, people are selling off their V6 right now sef 3 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by harqinhola(m): 5:35pm On Jun 06, 2023 |
From an economic stand point, demand and supply influence prices but the Tokunbo car sellers operate in perfectly competitive market . Most profits are reasonable. You hardly find a car seller using more than 100-300k to sell a regular car except luxury cars . What I believe will happen is that demand for “Luxury cars” will drop sharply thereby forcing down the importation and price but very slight changes will happen to the price of regular cars . Secondly, once the palliative come in form of cheap public transport system for the low income earners , car sales will crash drastically. 12 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Luckysbab: 5:37pm On Jun 06, 2023 |
slawomir: Or those with cars already can start ride-sharing. 1 Like 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by obama99: 5:37pm On Jun 06, 2023 |
zeenaman: See it's better you see things from the poor man's point of view . Transport cost is now on the high side. I fuelled my car yesterday for #31,000 what used to be just #11,000 . See the masses will suffer for it and it won't smell nice at all. These people are friends and are pure capitalist. Tell me what is the business of NNPC in setting prices for itself and independent marketers in a deregulated market? The president. Meant well but he was ill advised by his self acclaimed wise men. The border should have been opened up first let people cushion the effects themselves by getting goods cheaper. Less harrassement of custom officers at both the border post and the town. Let all immigration and customs officers relocate to the length and breath of the country porous border and stop wearing near uniforms to city center offices where they practically do nothing all through the day. Give license to modular refinaries to start operations and build more locally made boats for the Nigeria navy to patrol and seize and recover stolen crude oil. When those who get the license bring in the oil . NNPC should only serve as a regulatory body foe quality and quantity brought not as a price regulatory body. Market forces will crash the price itself. These fire brigade approach is what is killing the country. We have people who don't mean well in offices. 10 Likes 2 Shares |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by esemes256: 5:39pm On Jun 06, 2023 |
Are people still buying cars? 85% of people are looking for what to eat sef. If you have ANY car at the moment, you have made it in life. Quote me anywhere. 8 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Jayhome24: 5:39pm On Jun 06, 2023 |
It all occurred because Nigerians always blow things out of proportion. Same we Nigerians that had been saying No to subsidy now it was removed we same Nigerians are shouting. If Tinubu had waited to affirmed Buhari subsidy removal those evil oil cabals will never let it happen so removing it instantly is welcome then other adjustment follows. "No pain no gain" 3 Likes |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by adefitim(m): 5:42pm On Jun 06, 2023 |
Car? Ki lo kan iru awa wonyii |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by bigcasava1(m): 5:47pm On Jun 06, 2023 |
zeenaman:this is just go read him economic text book. |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by truefairview: 5:51pm On Jun 06, 2023 |
Price of petrol is an insignificant determinant of the price of cars which would be more affected by government duty on imported cars. Even expected reduction in prices of vehicles will not occur in the short run as those who already imported thirs for sale will not reduce their selling price just because price of gasoline has increased. The most significant factor in determining the prices of vehicles is the duty paid on them which i believe should rather increase as far as this government is concerned. this in effect means that fewer vehicles would be imported with asking prices still sky high. Prices of nigerian used car being the likely alternative may also go up as it becomes the bride of choice. 9 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by bdon12: 5:51pm On Jun 06, 2023 |
zeenaman:Toyota d car affordable by common man will sky rocket 1 Like 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Judolisco(m): 5:53pm On Jun 06, 2023 |
datola:anything wey go up no dey come down again 4 naija ... Except prick and aeroplane 2 Likes |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Otsam(m): 5:57pm On Jun 06, 2023 |
[Qquote author=zeenaman post=123523928]Personal opinion: The relationship between cars and Petrol is complementary in nature. Complementary in the sense that, one is needed to augment the other, just like garri and kulikuli. Going by basic economics principle, there is an inverse price relationship between complementary goods i.e an increase in the price of one results in decrease in the demand for the other. With this, it is conceivable that with increase in the price of petroleum, there will be less demand for cars, hence result in price crash occasioned by excess supply over demand. Also, from the angle of the Federal government, the rich benefit more from the subsidy. People with ten cars will now find it unfunny fueling the convoy, and this may result in selling off some of the vehicles. This should further increase the supply of cars and drive down the price. Let's talk about this, do you see the price of cars crashing? Let's leave out the Nigerian factor, corruption and base our argument on fact. [/quote] It could be a two way thing. Economics principle made us believe price should crash but the two way thing is: 1) buying a used car from the owner may come out cheap but, 2) imported cars (tokunbo or new) price absolutely depends on our exchange rate and custom duty. So, the subsidy removal wouldn't have effect here other than the decrease in importation . 4 Likes |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by ictplotter(m): 5:58pm On Jun 06, 2023 |
slawomir:12000 fuel from Abuja to Benin this present nigeria? Are u normal at all or you mean to say 120k. Fuel? 7 Likes 2 Shares |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by SeriouslySense(m): 5:59pm On Jun 06, 2023 |
I learned from the comments. thank you. |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by SirLakes: 6:00pm On Jun 06, 2023 |
Crash una If exchange rate and custom clearance does not reduce, price of cars won't crash Even bicycle wey dey use the riders blood as fuel don appreciate in value 1 Like |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by worldcop: 6:02pm On Jun 06, 2023 |
Border opened |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by valentineuwakwe(m): 6:02pm On Jun 06, 2023 |
Supply n demand indices doesn't work in Nigeria...car prices will even go up soon! 1 Like |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by obi58: 6:03pm On Jun 06, 2023 |
post=123613736: Bros..... What you need to understand is the elasticity of demand for luxury items is more inelastic as the higher income class compared to the lower income class. What that means is that fuel subsidy removal is not gonna affect people with convoys anytime soon because either they are filthy rich by virtue of their businesses or by virtue of their government money. Just the same way that people keep adjusting to price increases in the cost of beer. At the lower income class however, demand may contract as people adjust their spending to cope with the economic realities of the times. However it may be paradoxical as demand for fuel efficient cars may increase. Another factor which people fail to consider is the role of import duties on the pricing of cars. With the ridiculous levies imposed on vehicles by customs, I don't think car prices would come down any soon. If the government changes this policy things could change though 4 Likes 2 Shares |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Jeffyblaq(m): 6:03pm On Jun 06, 2023 |
esemes256:Cmon bro.. Itz not wat u think.. I have a lovely car which wifey drives cos I'm away.. Would dat mean that I've made it in life 🤔 May God bless us and His grace continue to shower mercies on us.. This should be your prayers as well. Bless up buddy |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by chokovirus: 6:05pm On Jun 06, 2023 |
There’s a new hike in the tariff for imported cars with effect from June 23. Hence, the prices of cars will likely increase. 7 Likes 2 Shares |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by GEJDHERO: 6:05pm On Jun 06, 2023 |
slawomir:12k is 10 litres oo...can it take u from Benin to Abuja? dey play 4 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by SeriouslySense(m): 6:05pm On Jun 06, 2023 |
even bicycle SirLakes: |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by laurel03(m): 6:06pm On Jun 06, 2023 |
Tonnierichy:Seriously they deserve accolade even some area still carry old price and those that increase just add #50 on top old price. 7 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by Aguogba(m): 6:08pm On Jun 06, 2023 |
zeenaman:All these your economic theories are correct IF supply (production and assembly) of cars is mainly LOCAL. As long as the bulk of cars we drive is imported, the reduction in price will only be felt on "Naija used". Brand new and Toks will still depend on exchange rate and import duty. The spillover effect of cheaper naira used will be insignificant. |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by marvrick: 6:09pm On Jun 06, 2023 |
Nigeria doesn't follow basic economic principles. What obtains in other saner climes doesn't happen in Nigeria. The abnormality is made worse by our complicity as citizens. You can imagine that just two days, in short the day after subsidy was removed, in a filling station with very long queues(both Jerry cans and vehicles) two customers were competing, vying to outspend eachother. The fools had quickly forgotten about the crisis and turned it into a game of some sort. Has anything's price ever come down after it rose in Nigeria? 2 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by BackFromBalablu: 6:09pm On Jun 06, 2023 |
wwwkaycom:Sorry to put mouth into this mata but, your friend don sell the car? If no, tell him to be patient. Price will go up soon. Why? It's either the price of fuel drops due to the way the country is going, which will later cause an increament in the car again. OR Nigerians will just get used to the normal price at which fuel is been sold. Let's take the incident that happened early this year to our naira note: when they imposed that law saying old currency was not going to be used again and new ones were the only valid currencies with that of #100, #50....and so on. Who would have agreed that nigerians would withdraw 10k with 5k? We heard stories and astonishing prices because of the cashless period. Now the stuff is biology actually comes to play in humans and business. And that brings about Adaptation. everyone will end up getting used to it because we'll always adapt. Humans are fluid in nature, in fact living things are fluid in nature. Just to summarize it all. Tell your friend to be patient he'll sell it for the price he had bargained for if he is patient and has a compelling communication with who ever might want to buy 3 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by esemes256: 6:09pm On Jun 06, 2023 |
Jeffyblaq: Yes bro. If you can afford to buy and maintain a car, you have made it in life. You are doing financially better than most people. Just continue to be grateful to God for that. 5 Likes 1 Share |
Re: The Effect Of Fuel Subsidy Removal On The Prices Of Cars by eteebanky1: 6:10pm On Jun 06, 2023 |
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