₦airaland Forum

Despite deregulation, Pinnacle Oil and Gas Limited, an indigenous oil and gas company active across the entire downstream value chain, has disclosed that Nigeria is currently paying about N1 trillion monthly as petrol subsidy.
The Managing Director/CEO of the company, Mr. Robert Dickerman, disclosed this while speaking during a panel session six, on Nigeria’s Downstream Forum at the just-concluded Nigeria International Energy Summit (NIES) in Abuja.


He said there is still a massive subsidy, which explains why the product remains cheap, thus encouraging smuggling to neighbouring countries.



He said: “Nigeria has a long history of allocating resources to oil and gas production at the expense of most other economic and social programs. To balance this, there has been a long-standing policy to mitigate consumer costs via palliatives such as fuel and food subsidies.

“But one of the net effects of oil money is underinvestment in local production, manufacturing and other value-added activities that could generate foreign currency through exports. There has also been a large under investment in the maintenance and upgrade of existing infrastructure including electricity, roads, health care, water, waste, education and financial infrastructure such as consumer credit.

“As a result, we have a huge negative trade deficit, except for crude oil and LNG, and our banks are not sufficiently capitalized to support significant new capital programs.

“With legacy monetary policymaking currency exchange difficult, we desperately need Foreign Investment. This is a reality. So the best policy during this time of crisis is a national policy to transform our economy/regulations/laws to accommodate and encourage FDI.

“Foreign investors, foreign lenders and government-run DFIs have been very clear about what they want to see: Conservative fiscal policy, tackling corruption, enabling competitive markets, and enforcement of fairness in markets through policy, regulation and the ability to enforce contracts. Keeping that context in mind, I want to point out that there is still a massive subsidy in PMS, albeit in the FX portion of PMS Price, not the global price in dollars.

“The consequences of this subsidy are: The cost of gasoline in Nigeria is the lowest in Africa by far, which encourages smuggling out, further depriving Nigeria of value. Smuggling causes Nigeria to subsidize neighboring countries even while our economy struggles. The cost is hurting the entire budget, Federal and State, as critical programs cannot be funded to pay this subsidy. It is currently calculated to be about 1 trillion Naira/month.

“Also, with this subsidy in place, ceasing subsidy payments would result in no petrol supply, if there are no refineries producing gasoline. All supplies come from the international market which will only sell at market prices.


There is no competition in bulk supply, as only the national champion owned by the government can import. Wholesale and retail prices are set based on their subsidized cost and they determine who gets supply. Without a competitive market, foreign investors are discouraged from investing in this sector in Nigeria.


“The solution to this problem seems obvious, even acknowledging the daily struggles most citizens and companies have today with reduced purchasing power, high inflation, high-interest costs and high unemployment that exists today. Short-term palliatives have never resolved long-term issues in any nation at any time in history. We need long-term solutions.”

https://www.vanguardngr.com/2024/03/fg-pays-n1trn-monthly-as-petrol-subsidy-pinnacle-oil-md-2/

Come and watch how tinubu goons come here to say it's a lie

I have been shouting it since last year

We have been paying subsidy since June

BrodaBenad:
Come and watch how tinubu goons come here to say it's a lie

We told them SUBSIDY is not Gone, but some never to do well will be defending ethnically, religiously and party wise. Tinubu have NO solution, no student loan, people are suffering.

I hope Tinubu has the balls to come back and tell us SUBSIDY IS BACK,heaven won't fall.

All this rubbish we are getting now starter creeping in slowly but our blind deaf and dumb leaders only kept filling their pockets and never gave a dawn,Nigerians though it was still well with us since 1991 during babangida, no single intelligent leader just rogues....

Tinubu is running a government of deceit but he is still better than the demented Peter Obi who plans to wage religious war against muslims and plunge the nation into a second civil war with his IPOB mentality. Nigerians must look beyond these two fraudulent men in 2027.

So, why is fuel price high?

BrodaBenad:
Come and watch how tinubu goons come here to say it's a lie

With subsidy, petrol is still dispensed at a price hovering around N650. If fg decides to completely stop subsidy payment, the price will be around N1000 per litre. I'm sure if that is the case, you would have continued screaming Tinubu at the top of your voice every minute. Diesel is not subsidised at all, what is the current price of the product? Some of you just go to social media to be dropping shyte. So what exactly is wrong if the govt still shoulder some of the cost?

Yarimo you've overworking yourself lately for this Apc 30k propaganda work?

What happened to "subsidy is gone forever"??

I can observe you've started manufacturing nairaland likes, you and your crew

immortalcrown:
So, why is fuel price high?

Without that subsidy, petrol would have been over N1000 which is the landing cost. Diesel is not subsidised at all, what is the price of diesel in the market today?

Cindypresh:
Yarimo you've overworking yourself lately for this Apc 30k propaganda work?

What happened to "subsidy is gone forever"??

I can observe you've started manufacturing nairaland likes, you and your crew

It is obvious you place so much value on comments on nairaland, the more reason you live on the forum. If not, what is the use of likes and shares that is giving you nightmare?

Richtaiwo:
Without that subsidy, petrol would have been over N1000 which is the landing cost. Diesel is not subsidised at all, what is the price of diesel in the market today?

Fuel price was N260 with the subsidy before. Why did the price increase to N600 with the same subsidy?

suckmedownthere:
All this rubbish we are getting now starter creeping in slowly but our blind deaf and dumb leaders only kept filling their pockets and never gave a dawn,Nigerians though it was still well with us since 1991 during babangida, no single intelligent leader just rogues....

If the govt doesn't bear some of the cost, I'm sure you will scream at the top of your voice for buying 1 litre at a price over N1000. So shut the Bleep up.

immortalcrown:
Fuel price was N260 with the subsidy before. Why did the price increase to N600 with the same subsidy?

Go back to primary school and learn simple basics. How much was fg previously spending on subsidy? You just saw it that fg now spend 1 tr monthly. Compare for both cases and find out the landing cost of fuel now?

Richtaiwo:
It is obvious you place so much value on comments on nairaland, the more reason you live on the forum. If not, what is the use of likes and shares that is giving you nightmare?

Why are you triggered that I bursted your manipulations here??

Richtaiwo:
Go back to primary school and learn simple basics. How much was fg previously spending on subsidy? You just saw it that fg now spend 1 tr monthly. Compare for both cases and find out the landing cost of fuel now?

What volume of oil was sold and what volume of oil was imported then? What volume of oil is sold and what volume of oil is imported now? Answer these two questions, let's know who needs to go back to primary school.

Cindypresh:
Why are you triggered that I bursted your manipulations here??

First, I'm not Yarimo. Second, I don't really value comments on the site because it is very insignificant in scheme of things. But you that think comments on nairaland will remove tinubu from Aso rock is the one crawling nairaland 24/7 and even thinking anyone manipulates likes and shares. Abeg, how much seun dey pay for the likes and shares?

Richtaiwo:
With subsidy, petrol is still dispensed at a price hovering around N650. If fg decides to completely stop subsidy payment, the price will be around N1000 per litre. I'm sure if that is the case, you would have continued screaming Tinubu at the top of your voice every minute. Diesel is not subsidised at all, what is the current price of the product? Some of you just go to social media to be dropping shyte. So what exactly is wrong if the govt still shoulder some of the cost?

Oga I'm not against Tinubu removing subsidy

You don't get the point

Some of his policies so far aren't bad

I don't play bitter politics


My point is , many APC goons here are giving him credit for removing subsidy when he hasn't removed it

Nlfpmod opened is thread after this.

Richtaiwo:
First, I'm not Yarimo. Second, I don't really value comments on the site because it is very insignificant in scheme of things. But you that think comments on nairaland will remove tinubu from Aso rock is the one crawling nairaland 24/7 and even thinking anyone manipulates likes and shares. Abeg, how much seun dey pay for the likes and shares?

You're not yarimo??;did I ask you that

Cindypresh:
You're not yarimo??;did I ask you that

answer him , how much seun pay for likes and shares. That's very simple question he asked you

Cindypresh:
You're not yarimo??;did I ask you that

Stop typing nonsense over the site. That the site is faceless doesn't in anyway suggest competition of foolishness.

Richtaiwo:
Stop typing nonsense over the site. That the site is faceless doesn't in anyway suggest competition of foolishness.

I also did not ask you if you're foolish 🙄