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Nairaland Forum / Nairaland / General / Politics / Subsidy Removal Drags Down Petrol Consumption By 28% (39029 Views)
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Re: Subsidy Removal Drags Down Petrol Consumption By 28% by leokid866: 8:24am On Jul 08, 2023 |
nairalanda1:because Jonathan had nothing else to offer, he and his cronies like diezani had emptied the nation's coffers and where looking for money everywhere, and they thought let's remove subsidy....there was no buffer or plan set in place and it made no sense since oil was st 100$ per barrelat the time......none of the nations refineries were working and though Dangote had taking off he was still years from been viable......people are more willing to bear the situation now cause the current administration has promised Dangotes refinery will be up and running before the end of the year and we can all see them making moves to cushion the effects including speaking with trade and labour unions.......under jona trade and labour asked him to at the very least meet with them once so they can plan it properly jona refused which was what made labour get angry and join the protest......jona had absolutely no plan for what was to come next after the subsidy removal....Jonas wastefulness was what led the nation into a recession cause there was nothing left to work with when the new government took over. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Godszilla: 8:29am On Jul 08, 2023 |
Dangote, PH refineries, others won’t change fuel price – NNPCL The local production of Premium Motor Spirit, otherwise known as petrol, by Dangote Refinery, Port Harcourt Refining Company and others in Nigeria is not going to change the pump price of the commodity, the Nigerian National Petroleum Company Limited has said. https://punchng.com/dangote-ph-refineries-others-wont-change-fuel-price-nnpcl/ Gentle reminder in case you missed this earlier. Cheers nairalanda1: |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by nairalanda1(m): 8:31am On Jul 08, 2023 |
Godszilla: That is why I said in that quote you quoted that it may....not that it would. Personally, I don't expect it to reduce prices to below N200. Or even 400. Maybe N450 and above. Maybe even higher. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Believeintruth: 8:37am On Jul 08, 2023 |
risos: If you believe that crap then you must be high on dried cow dung. In the first place can NNPC or whatever regulatory body tell us how much in liters of Nigerian petrol is in black market in the major countries out of our monthly consumption. I can bet you that it is not up to 20%. The issue wasn't subsidy expenses, but the corruption in the process, up until now there has been no probe of the last 8 years subsidy regime and no audit of the NNPC to determine the actual metric measure used for crude oil swap for petrol, and all of a sudden you increase price and claim subsidy removal 2 Likes |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Believeintruth: 8:41am On Jul 08, 2023 |
post=124281915: All this propaganda all because of your greed and short sightedness. One would have expected that with the disaster of Buhari you would have been wise, but we are shocked that still because of stomach Infrastructure you are supporting another APC government that in 30 days has made Nigerians poorer than in 8 years of Buhari's disaster and the same government is proposing killer tax laws for a citizenry whose earning power has dropped drastically and for a citizenry that you made no investment on. See God is watching us oooo and he will punish us accordingly. 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Believeintruth: 8:44am On Jul 08, 2023 |
JIBO4REAL: By how much? Please don't believe this propaganda what percentage of our fuel is being smuggled? Only a 40% smuggled quantity would have caused all year round fuel scarcity. The amount being smuggled is not up to 10% |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Godszilla: 8:49am On Jul 08, 2023 |
So if the government cant subsidise energy, what then can they subsidise for the citizens? Lets even ignore thats of citizens, every great country we have today basically was built on subsidised cheap energy that fuel powered their industrialization and production. So our govt wont subsidise fuel and diesel whats the alternative to power this our internal production dream? nairalanda1: 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Believeintruth: 8:50am On Jul 08, 2023 |
Skyview01: He is seriously on drugs... |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Believeintruth: 8:51am On Jul 08, 2023 |
BabaCommander: The amount smuggled is not up to 10% if you have travelled to these countries where they say we smuggle petrol to. It is the black market in communities close to the Nigerian border that use the fuel. Other part of their countries the fuel is expensive. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Believeintruth: 8:52am On Jul 08, 2023 |
grandstar: If you believe that crap propaganda ehnnn.l, I really pity you. 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Ebubu6: 8:56am On Jul 08, 2023 |
Drsnives: |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Chiefpriestt: 9:01am On Jul 08, 2023 |
Zupay:That dude na efulefu |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by nairalanda1(m): 9:06am On Jul 08, 2023 |
Godszilla: I hate to defend government, but 1.Government has been subsidising health and education at government institutions for years. That's why you don't have to sell your house to pay hospital bills if you were operated on for a simple appendix in a government hospital, or why you don't have massive debt in millions of naira when you graduate from a government school (though that may soon change). 2.Goverment also subsidises your road usage, ever since Obasanjo ended road tolls in 2002. ets even ignore thats of citizens, every great country we have today basically was built on subsidised cheap energy that fuel powered their industrialization and production. So our govt wont subsidise fuel and diesel whats the alternative to power this our internal production dream? First, the way we did subsidies, we in essence forced the price of fuel way below its production price which led to fuel being sold at a loss. The amount government paid to cover that loss...subsidy....was usually not enough because production prices always rise. And rise too much Second, most countries that subsidise do so in the form of tax relief or grants to the oil industry. The industry is still allowed to set its prices above the production cost. The aim of their subsides is to bring down the production cost (unlike in Nigeria)..but even then it does not mean dirt cheap fuel at the equivalent of N40 or less. Then there is cash assistance provided to poor people, but you have to meet a certain income point, and once above it, assistance ends.(Anectdote...South Africa gives cash assistance to students who come from poor households...at a certain income level, for them to study in universites. One girl was denied because she was a few hundreds above the limit. And she really did need the cash...but she was not poor enough). Third many countries who subsidies like Nigeria used to either have 1.Bad refineries eg Venezuela 2.Massive smuggling...Venezuela, Iran, Libya , Angola. (Libya's own is so bad that they are resorting to using airstrikes to stop smugglers .....something we never did here) 3.High debts...Iran, Venezuela. (Iran is spending twice its revenue on subsidies. Naturally it's economy is under pressure). Fourth, for Nigeria to afford subsides, it has to either have a population below Libya (like 6 million people), or a production of above 30 million barrels of crude a day, with oil above 100 dollars a barrel....which is not possible. Or we have very high tax rates of 50% |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by easytig(m): 9:33am On Jul 08, 2023 |
I use my vehicle sparingly these days , buying fuel steady at 500per litre couple with inflation of foods stuff will definitely disturb my disposable income.im thinking of buying a bicycle or Carmel or horse to navigate my movement 😂😂😂 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by tabaralph: 9:43am On Jul 08, 2023 |
God1000:So wasting of billions of dollars on subsidy is the dividend of democracy right, I won’t be surprised if you are one of the petrol smugglers to the neighbouring countries… 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by grandstar(m): 9:45am On Jul 08, 2023 |
Believeintruth: I don't know what crappy propaganda you're talking about. Forecasting is based on knowledge. You put in or apply the variables or fundamentals available and it helps you in predicting. If you see a 14 year girl around flirty dressed around boys all day, you can predict that she would soon get pregnant or commit an abortion (in case protection isn't used) You have people who make money from economic or financial forecasting. George Soros made a $1b by predicting accurately that the British pound sterling could not stay within the ERM in 1992. I wrote off the economy within a 30 days of Buhari assuming office in 2015 when he started fixing the exchange rate. I knew the economy was doomed and the "lost decade" under him proved me right. The reason why you do not believe government statistics is because we leave in a "low trust sociwty.". People poo poo or look with cynicism anything that government says. There simply is little or no trust. Even if you don't believe, do you own findings and be sincere. Most people want a narrative that pleases them and not the truth. 3 Likes |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by loswhite(m): 9:49am On Jul 08, 2023 |
DMCY:They are not. The problem is your corrupt politicians and ppl.at NNPCL. 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by nairalanda1(m): 9:59am On Jul 08, 2023 |
loswhite: Smuggling is a phenonenom that happens in all countries with explicit subsides on petrol like Nigeria. Libya sells fuel at N14, and they can afford it, with a populaiton of 7 million and production of 1.7 m barrels per day. But that means that smuggling happens massively...to the point they are using air strikes to stop smuggler. Yeah corrupt politicans and NNPC are part of the problem because subsidy=free government money-=corruption |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by loswhite(m): 10:10am On Jul 08, 2023 |
nairalanda1:I want subsidy to stop but the perfect time was 2012. A stronger naira back then and local refinery would have helped. Right now we are in a total mess |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by nairalanda1(m): 10:12am On Jul 08, 2023 |
loswhite: Yeah, 2012 was a good time to have removed subsidy (SURE P savings convinced me self).....but then most Nigerians said no, and even used the same arguments that are being used today. But then again, we have no choice in the matter. Subsidy has to go now, or the mess we are in now would be ten times worse in the years to come. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by easytig(m): 10:18am On Jul 08, 2023 |
What brand is the 30,000mah powerbank odigbosky: |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by CodeTemplar: 10:24am On Jul 08, 2023 |
leokid866:lie lie. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by CodeTemplar: 10:29am On Jul 08, 2023 |
nairalanda1:In a counttry where anti corruption agent hardly catch anything outside YahooBoys, using air strike would have made sense than removing subsidy. 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Believeintruth: 10:37am On Jul 08, 2023 |
grandstar: It's is not about low trust, Nigeria has a data gathering issue. The government agencies themselves made this so that there will avoid accountability. So why should I I believe something that even you know is doctored. 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Godszilla: 10:54am On Jul 08, 2023 |
The following countries subsidise petrol prices Iran China India Korea Luxemburg Mexico Slovenia Sweden Turkey USA Etc about 39 Simple Google search will give you this. Subsidy is not the problem its the corruption and mismanagement. "The Environmental and Energy Study Institute estimates direct subsidies to the fossil fuel industry in the US amount to $20bn per year - 80% of which goes towards oil and gas. On top of this, the US provides a number of tax breaks to the fossil fuel industry to encourage domestic energy production." China and India have been increasing investment in renewable energy - but they remain amongst the world's largest public financiers of fossil fuels, spending tens of billions of dollars every year by subsidising both their production and consumption. Saudi Arabia and Russia have long-standing policies of subsidising fossil fuel consumption through low energy prices, because of vast natural resources of oil and natural gas https://www.bbc.co.uk/news/59233799 nairalanda1: 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by nairalanda1(m): 11:04am On Jul 08, 2023 |
Godszilla: 1.Iran has issues with subsidies. They have to spend twice their income on subsides and then there is smuggling , mostly to Pakistan. 2.China can afford subsides because they are a leading manufacturer, and as such earn trillions of dollars in revenue, and then there is tax and so forth. Nigeria ain't earning in trillions because we are not 3. India does not subsidise fuel...infact prices differ from place to place 4. Korea is like China. Korea also subsidsies diesel for taxi drivers and public transport...not for everyone. It also subsidises green energy vehicles... 5.Luxembourg is a rich wealthy country with a tiny population. Naturally they got money. 6.Mexico subsidises...and right now its subsides are exceeding any profits made by the industry. Danger looms... 7.Slovenia and Sweden are industrial manufacturers who earn large amounts of money for tiny populations. Yes, they can affrod subsides. 8.Turkey is the same as the above 9.USA does not offer explicit subsides as Nigeria (you have Americans longing for the day when fuel was 70 cents a gallon..lol). They try to reduce costs by paying subsides to the refineries, not the end consumer. Also, some poor people get welfare assistance to pay for fuel. It isn't for everyone...rich or middle class or poor. And fuel can be expensive dependeing on the state (in Califormia it is very expensive.... As for Nigeria, we were paying for explicit subside....ie subsides paid to cover the losses resulting from selling fuel way below its productive cost...from oil income. Not from taxes or from revenue from manufacturing and exporting manufactured goods...or from other sources of income...just oil. And we don't even earn enough oil money to begin with for a nation our size. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Godszilla: 11:21am On Jul 08, 2023 |
nairalanda1: You just basically explain mismanagement here that's not the subsidy?but the process n implementation. Correct me please “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by nairalanda1(m): 11:26am On Jul 08, 2023 |
Godszilla: Even if we had accurate values of fuel consumption and no smuggling or corruption, we still cannot do nothing about the cost of production. NNPC tried by making sure that the fuel refined for import into Nigeria was refined in 'substandard' refineries in Europe. But it still did not work Cost of production keeps on rising, and that pushes up subsidy costs When we had refineries, we tried to reduce costs by skimping on TAM from the 1990's. Naturally, it ended in us losing the refineries. The thing is, why is there no mismanagement in the telecoms sector? Because they are allowed to set their prices. No subsidy. They make profits and they attract investment. The oil sector cannot do that for refining. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Damian911: 11:27am On Jul 08, 2023 |
You dey mind the brainless zombie Until his worthless grilling business crash and he's unable to feed himself and miserable family (that's if him get) before him go get sense Zupay: 1 Like |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by masseratti: 11:49am On Jul 08, 2023 |
FacilitatorLekk:i have been to like 20 states in Nigeria... I think we are over Estimated.. I have also been to other countries, Nigeria can't be up to 200m. We are hardly 150m. |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by Sijo01(f): 12:02pm On Jul 08, 2023 |
I've not heard the sound of one of my neighbors Gen that used to disturb my sanity for the past one month now. It is well o |
Re: Subsidy Removal Drags Down Petrol Consumption By 28% by mabea: 12:33pm On Jul 08, 2023 |
Zupay:It is all right to support a particular candidate but it's disservice to cheer him on on every decision no matter how bad it is. |
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