₦airaland Forum

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They are simply cutting down because the truth about our consumption is about to be revealed.

if NNPC is the sole/only importer, they who are we paying subsidy to?

I still don't understand why the government could not build a refinery in 8 years or license other companies to build so that there can be competition.

Dangote the game changer

Another monopoly,pms will increase to 1000 and above before December

kokoA:
No o.. They would have taken 100% naw and changed the name to NNPC2.

Don't mind him. Talk is cheap nah

Pls, who is NNPC?
Who are they working for?
Who is taking the profit?

CodeTemplar:
They gave Dangote cheap forex to build his refinery but only secured a 20% stake in it. Too low. Should have gone for 50% instead of watching him make huge forex in the future and the govt now be at his mercy.

You are correct but 50% will mean they need to made a commitment of about $9.5billion, can NNPCL afford that within the period without borrowing again? Considering that they are battling with importation at that same time. To be honest with you, I think dangote is fair enough to even allow 20%, and NNPCL is smart enough to get that % too. Not a bad deal if you ask me.

after 4 years i see them increasing pump price again, una never see anything

slawomir:
Damnnn niggar

Tinubu's administration is already a disaster

Late July or early August kill una there

2024 ending that refinery never ready

bitter obidient spotted

CodeTemplar:
They gave Dangote cheap forex to build his refinery but only secured a 20% stake in it. Too low. Should have gone for 50% instead of watching him make huge forex in the future and the govt now be at his mercy.

talk is cheap

oluwaseyi0:
if NNPC is the sole/only importer, they who are we paying subsidy to?

Major Marketers

slawomir:
Damnnn niggar

Tinubu's administration is already a disaster

Late July or early August kill una there

2024 ending that refinery never ready

I thought this guy had sense oo

gfelo:
after 4 years i see them increasing pump price again, una never see anything

We don't care, we knew it will not be easy if we want drastic change. Tinubu got what it takes, we have seen him do it in Lagos. He will surely do it again

slawomir:
Damnnn niggar

Tinubu's administration is already a disaster

Late July or early August kill una there

2024 ending that refinery never ready

no dey do na

dante0147:
MSo NNPC has been the sole importer of petrol since buhari came into power since that is what the news said… Then who has been receiving the subsidy money?

Firstly, NNPC was not really the sole importer. Rather there was a complex arrangement.

Secondly, the landing cost of fuel is about 266 naira. That is how much marketers buy it per litre from NNPC. Then there is an operational cost of around 35 naira. So the cost of a litre of fuel is around 300 naira. Then the marketers need to add some profit.

So if you were buying fuel below 350 naira, that was subsidy at work.

Nonsense to the extreme. You can't construct and maintain your own refinery with all the supports and monies pumped into it all these years but have the guts to brag about owning 20% shares in a private conglomerate when it's supposed to be the other way round. Shane on you!!!

SalamRushdie:
Dangote cant meet it's installed capacity this year

Don't forget it isn't govt owned but private. A private businessman is highly motivated by profit in view.

Nothing goes as planned in Nigeria.... Let's wait and see.

Corrupt government gives room for corruption to thrive and that is shat is keeping Nigeria down. We need serious and sincere leaders not politicians

CodeTemplar:
They gave Dangote cheap forex to build his refinery but only secured a 20% stake in it. Too low. Should have gone for 50% instead of watching him make huge forex in the future and the govt now be at his mercy.

The government too dull... They signed different useless contract at the mercy of the country

That's how they signed agreement with Azura Power plant that even if Azura generate light or not to the power grid, the government must pay $20 million dollars monthly to Azura...

SalamRushdie:
Dangote cant meet it's installed capacity this year

I hope NNPC decision is not an attempt to keep on the price of PMS ridiculously high.

If Tinubu do not fix our refineries within six months if he is still in power, then he is as clueless as his predecessor.

PlutoChief:
Okay



Well-done BAT

Wetin BAT do?

you dont care abi? soon you will see that is not subsidy that kept Nigeria under developed it is corruption, how can Tinubu fight corruption when there is so many allegations of corruption over him, now we have case of Nigeria Airway, how they hired fake plane right? let him start by probing them you will see all his case on the following listed below comes out.
1) Drug baron
2) Dual citizenship
3) Bullion van
4) Age forgery

Slurity:
We don't care, we knew it will not be easy if we want drastic change. Tinubu got what it takes, we have seen him do it in Lagos. He will surely do it again

Slurity:
We don't care, we knew it will not be easy if we want drastic change. Tinubu got what it takes, we have seen him do it in Lagos. He will surely do it again

What change are you talking about? Change from what to what?

What did Tinubu do in Lagos that he will surely do again?

Slurity:
Major Marketers

apologies but I still don't get it, is it not NNPC that is selling to the major marketers or are the major marketers importing the fuel themselves?

if marketers are importing fuel and selling it at a reduced cost to the cost of importation/overhead then subsidy will make sense as it is the payment for selling at reduced rate

but if NNPC is the only one importing fuel then selling to major/minor marketers at a certain price which definitely will be the subsidized price then only NNPC should lay claim to a subsidy refund, marketers can't get fuel from NNPC for less than 200, then go back to same NNPC to claim susbidy to the tune of billions

If I'm mixing up something above please kindly educate me

dante0147:
MSo NNPC has been the sole importer of petrol since buhari came into power since that is what the news said… Then who has been receiving the subsidy money?

I hope I can explain better but let me try the little way I can.
Before Bubu, marketers import the fuel then sell at a fixed price, fg then reimburse them of the difference which is usually high as they source FX wherever they can.
When Bubu came in, he claimed subsidy wasn't real Abi Na fraud, so the system was changed. That was what prompted them(Bubu n NNPC) announcing that subsidy has been removed during his time, it was never removed, it was restructured or rebranded or reanything you can think of, but not removed.
NNPC is now the sole importer, so they sell at a determined price to the marketers, however, the marketers are responsible for logistics (diesel and storage especially), which is usually determined by FX, so the fg pays the difference to the marketers.
With the removal now, marketers can source for FX anywhere, buy anywhere, and sell at any amount.