Federal government made it clear that they are not paying for subsidy and there is no budget for it.
Now to those who think there is still subsidy, i want to ask them if they are the ones paying for it

abdeefggh:
Federal government made it clear that they are not paying for subsidy and there is no budget for it.
Now to those who think there is still subsidy, i want to ask them if they are the ones paying for it

There is fuel subsidy. Until you understand why the prices of Diesel, Kerosene and cooking gas is higher than that of petrol, you won't understand the systemic subsidy.

I don't understand all these nonsense. I just suspect that price of fuel is about to go up again. They will tell us 1200 then we will drag them they will peg it at 1k or even 800..
Gullible Nigerians will still support and defend this scheme. Before when we were paying the so called subsidy Nigeria was more stable, why will removing it cause more hardship to Nigerians?
They subsidy they stopped where is the money and what has it done?
To those of you that voted this mess thank you.

abdeefggh:
Federal government made it clear that they are not paying for subsidy and there is no budget for it.
Now to those who think there is still subsidy, i want to ask them if they are the ones paying for it

Buhari said worse

abdeefggh:
Federal government made it clear that they are not paying for subsidy and there is no budget for it.
Now to those who think there is still subsidy, i want to ask them if they are the ones paying for it

Seriously some of you make it hard to believe that there aren't ppl without brains.

NNPC does not source dollars to import PMS from the CBN or parallel market.

Why? They earn their own dollars.

Hence, I believe there is no subsidy.

thesolutions:
There is fuel subsidy. Until you understand why the prices of Diesel, Kerosene and cooking gas is higher than that of petrol, you won't understand the systemic subsidy.

Diesel and Kerosine are universally more expensive than Petrol.

Natural gas prices usually spike during winter. The terrorist attack on the Nordstream 2 pipeline by the US/UK only exacerbated the price hike.
NLNG has been priotizing exports since the Ukraine war.


Why are you guys so daft?

Parable007:
I don't understand all these nonsense. I just suspect that price of fuel is about to go up again. They will tell us 1200 then we will drag them they will peg it at 1k or even 800..
Gullible Nigerians will still support and defend this scheme. Before when we were paying the so called subsidy Nigeria was more stable, why will removing it cause more hardship to Nigerians?
They subsidy they stopped where is the money and what has it done?
To those of you that voted this mess thank you.

Subsidy is unsustainable especially when you are importing refined petroleum products with scarce dollar reserves.

You should be more interested in seeing to the development of the downstream sector beyond just Dangote refinery as it will create jobs for thousands if more liscenced local refinaries come up stream.

Nbote:


Seriously some of you make it hard to believe that there aren't ppl without brains.

So how is the government subsidizing fuel?

NNPC isn't operating their "under recovery" account and the FG has no provision for paying importers.

Can you tell us why you feel subsidy is still in effect ?

APCHaram:


So how is the government subsidizing fuel?

NNPC isn't operating their "under recovery" account and the FG has no provision for paying importers.

Can you tell us why you feel subsidy is still in effect ?

a very intelligent question.
To the best of my knowledge of chemistry of hydrocarbon, diesel & dpk are heavier with longer chain and the two can be cracked to produce lighter pms with shorter chain, that is highly inflammable.
Meanwhile, I stand to be corrected.

ThinkSmarter:
a very intelligent question.
To the best of my knowledge of chemistry of hydrocarbon, diesel & dpk are heavier with longer chain and the two can be cracked to produce lighter pms with shorter chain, that is highly inflammable.
Meanwhile, I stand to be corrected.

How does this correlate to the question he asked??

thesolutions:
There is fuel subsidy. Until you understand why the prices of Diesel, Kerosene and cooking gas is higher than that of petrol, you won't understand the systemic subsidy.

Explain the systematic subsidy and let us know when and how they paid for it

princemillla:



How does this correlate to the question he asked??

Cuz kerosene and diesel can be used to produce petrol in a process called cracking.
And more quanity of petrol is produced.
Cuz diesel and kerosene are both denser than petrol.

abdeefggh:


Explain the systematic subsidy and let us know when and how they paid for it

The systemic subsidy is the systemic fraud in which only NNPC has the sole right to import PMS using foreign exchange earned from sales of products under their control. What this means is that they fixed their own exchange rate different from rates on the parallel market to keep the price fairly stable. They sell these forex to selected accomplice known as major marketers so it will appear that NNPC is not the sole importer of Petrol. By so doing, The government is shortchanged of the forex accrued from transactions carried out by NNPC. This is why it has become difficult for other marketers to import PMS at a landing cost of 95.7 cents (Approximately N1,080) and sell at 60 cent (N630) using rates from parallel market.

What this means is if Individuals are to import fuel and sell to the market, the price according to the current exchange rate would be between N1,200 to N1,300. If you are not seeing subsidy, it is not my fault.

Why are people not seeing any hope for the naira? It is simple. NNPC is sharing the forex they are earning for import of PMS creating forex drought for the government. The government on it own is mopping up available Forex from individuals making it difficult for people to take these forex to the bank. They will rather sell to the highest bidder outside the banking hall than let the government know that they have possession of forex. The government is not ready to cut it excesses and so the worst is yet to come. The cosmetics will soon wear off and the naked urgly face of the economy will be exposed. No one wants this. But this is the fact of how things are.

princemillla:



How does this correlate to the question he asked??

God bless you oo. I beg no dey mind those okoro 😩. Its only God that can help dem

thesolutions:

The systemic subsidy is the systemic fraud in which only NNPC has the sole right to import PMS using foreign exchange earned from sales of products under their control. What this means is that they fixed their own exchange rate different from rates on the parallel market to keep the price fairly stable. They sell these forex to selected accomplice known as major marketers so it will appear that NNPC is not the sole importer of Petrol. By so doing, The government is shortchanged of the forex accrued from transactions carried out by NNPC. This is why it has become difficult for other marketers to import PMS at a landing cost of 95.7 cents (Approximately N1,080) and sell at 60 cent (N630) using rates from parallel market.

What this means is if Individuals are to import fuel and sell to the market, the price according to the current exchange rate would be between N1,200 to N1,300. If you are not seeing subsidy, it is not my fault.

Why are people not seeing any hope for the naira? It is simple. NNPC is sharing the forex they are earning for import of PMS creating forex drought for the government. The government on it own is mopping up available Forex from individuals making it difficult for people to take these forex to the bank. They will rather sell to the highest bidder outside the banking hall than let the government know that they have possession of forex. The government is not ready to cut it excesses and so the worst is yet to come. The cosmetics will soon wear off and the naked urgly face of the economy will be exposed. No one wants this. But this is the fact of how things are.

the nnpc remains the sole importer of petrol into Nigeria and that's it. Any independent marketer that wants to do so are also free to import. But they will have to source for their own dollars at the official rate, which is the same rate nnpc is getting its dollars. Pls enough of all this conspiracy theories that holds no water. Its better if we can all work together for a better day

lexylaw40:
the nnpc remains the sole importer of petrol into Nigeria and that's it. Any independent marketer that wants to do so are also free to import. But they will have to source for their own dollars at the official rate, which is the same rate nnpc is getting its dollars. Pls enough of all this conspiracy theories that holds no water. Its better if we can all work together for a better day

So from which bank is NNPC getting it dollars from. NNPC doesn't source for dollars. They sell our crude and use the proceeds to import fuel. As it stands now, NNPC has borrowed dollars from customers that buys crude oil from them. They are going to be supplying crude oil to the company free until they have completed the debt. What this means is there is no more dollars until they have cleared the debt. But you are still young to understand. You will grow up one day.
If some tell you that something you liked is not good, it doesn't not mean the person hates you. Try to ask others about that thing to have wider opinion.

As at October 2023, landing cost of fuel in nigeria is N720. Cost of fuel at this time at the pump? N580-N700 nationwide.

Since then landing cost has been rising. If we started refining tomorrow, we would remove N70 from the price of fuel , whatever it is.

But for now, landing cost is N720. That means whoever is importing fuel is sustaining a loss doing so. That for now is where the subsidy comes in...and it is being paid to the importer, of whom NNPC is the majority importer.

Government, of course denies it. Since subsidy has been associated with so much corruption.

The funny thing is most Nigerians want subsidy to come back, to the point where they will buy fuel at N200 OR less. Either they pretend that subsidy does not exist, that fuel is cheaper than it should be, or that NNPC is stealing, or something.

I fully believe that fuel should be at N1200 or above now. If we were serious. But the truth is, no matter what , Nigerians want cheap fuel. That is why anytime subsidy removal came up in the past, people were not ready to listen to sane arguments.

thesolutions:
So from which bank is NNPC getting it dollars from. NNPC doesn't source for dollars. They sell our crude and use the proceeds to import fuel. As it stands now, NNPC has borrowed dollars from customers that buys crude oil from them. They are going to be supplying crude oil to the company free until they have completed the debt. What this means is there is no more dollars until they have cleared the debt. But you are still young to understand. You will grow up one day.
If some tell you that something you liked is not good, it doesn't not mean the person hates you. Try to ask others about that thing to have wider opinion.

nnpc has not borrowed money from any buyer ok. The Federal government borrowed not Nnpc and if so, there's always an agreement on how to pay back which is not as you've stated. I mean who does that. People payback little by little so that it does not affect there trading capital. Simple economics

lexylaw40:
nnpc has not borrowed money from any buyer ok. The Federal government borrowed not Nnpc and if so, there's always an agreement on how to pay back which is not as you've stated. I mean who does that. People payback little by little so that it does not affect there trading capital. Simple economics

Fela said Sorry. I mean it should be a good thing right?

FG is subsidising PMS indirectly by making FX available to NNPL at rates other competitors can't get.

ivandragon:
FG is subsidising PMS indirectly by making FX available to NNPL at rates other competitors can't get.

Correct.
That's indirect subsidy.