₦airaland Forum

Clazzone:
You don't really understand law of demands and supply in this situation, this is a product that keeps the economy running, if major marketers are getting a "subsidised" price of less than 600 and independent marketers that cover majority of the filing stations outlets are getting 720 naira and you and I trying to boycott theirs thereby tilting towards the major marketers to buy and you eventually crowd out the independent marketers from the business due to price. That's how scarcity is created.

drlaykay:
This is what you I do not understand about Nigerian economy. When prices go up, supply should be higher and demand lower. Hence, there shouldn't be scarcity.

But in naija, economics is upside down. That's why beautiful policies don't work here.

Blazetrailer:
Lol...
One of the lies they told was that if they removed subsidy, it will liberalise the market and it will make the products flow in without hindrance and hence bring the prices down after some time.

I laughed at the above postulations when some of the public commentators were pushing this stupid narrative.

Same narrative was said for the devaluation of the naira...that it would rise but will eventually come down to about 600/700 to a dollar in a short while. This was emphasised several times by the current minister of finance. The thing is 1500 and rising

I knew they were deceiving the people...the gullible ones

Blazetrailer:
Lol...
One of the lies they told was that if they removed subsidy, it will liberalise the market and it will make the products flow in without hindrance and hence bring the prices down after some time.

I laughed at the above postulations when some of the public commentators were pushing this stupid narrative.

Same narrative was said for the devaluation of the naira...that it would rise but will eventually come down to about 600/700 to a dollar in a short while. This was emphasised several times by the current minister of finance. The thing is 1500 and rising

I knew they were deceiving the people...the gullible ones

Blazetrailer:
Lol...
One of the lies they told was that if they removed subsidy, it will liberalise the market and it will make the products flow in without hindrance and hence bring the prices down after some time.

I laughed at the above postulations when some of the public commentators were pushing this stupid narrative.

Same narrative was said for the devaluation of the naira...that it would rise but will eventually come down to about 600/700 to a dollar in a short while. This was emphasised several times by the current minister of finance. The thing is 1500 and rising

I knew they were deceiving the people...the gullible ones

EmperorFred:
The aim is to be 100% certain that the people remain poor and they'll continue to do so until we are ready to eliminate them all

Yamleg:
APC!!!!

Xscape1993:
Why are we importing fuel when we have the crude? What is wrong with Nigeria's leadership? Why suffering the masses when you are not doing what you are suppose to do? Someone on this platform should please provide me with good answers.

ollypass:
This dangote man..why is it any thing he touches gets inflated...

Fareke:
Okechukwu Nnodim, Dare Olawin and Anozie Egole


https://punchng.com/fuel-scarcity-looms-as-depots-raise-petrol-price-to-n720-litre/

Tianamen1:
how do you define market price? if your market price is based on the value of the Naira, then the government devaluing the naira increases the price Nigerians pay for petrol. is this an indirect method of taxing Nigerians to cover the costs of low oil prices to maintain a budget based on 120 dollars per barrel?

nairalanda1:
Because since the 1970's, we have kept fuel subsidised, which in simple terms, means we have sold fuel below what it costs to produce it , and the government pays a subsidy to cover the resulting loss. The idea being to protect the poor from rises in prices due to rises in cost of production brought about by rises in crude oil price (the subsidy came on line as a result of the massive oil price rises due to the Yom Kippur war of 1973)

This means that over the decades, refining fuel has become unprofitable in Nigeria. Also, the refineries cannot make enough of a profit to run properly, and thus as a result they break down, meaning that we have to import fuel.

(Something similar happened in Venezuela. Fuel costs under N100 per liter, and has been like that for decades. Meanwhile, most of its refineries are also in a bad state).

The only way out is allowing fuel to be sold at market price (as you can see APC and tinubu have never really removed subsidy), but this means that fuel would be sold over N1200 per liter. While this would allow for domestic refining to be profitable in Nigeria, and also in theory save money for the government, and also prevent forex flight, the problem is, it is very and always has been unpopular among most Nigerians.

Indeed, this comment is going to attract a lot of abuse, and a lot of people labelling me tinubu supporter. If you said the same thing in 2012, you would be called a PDP supporter, and a GEJ slave.

What government has done over the years, is partial removal of subsidy, to reduce subsidy costs. If fuel had remained around N65 per liter as it did in 2012, government would have been spending nearly N1800 per liter in subsidy today. That isn't sustainable.

The sad thing is that most of us prefer cheap fuel, even if it pushes us into more debt.

cucumbar:
this Mumu is out again .

Your area of specialization is on the front page.

Time for you to start writing lengthy rubbish.

Sleekfingers:
What's stopping the FG from repairing or building refineries?

Dangote is a businessman. And his major priority is to make money and more money. He is not a Santa Claus.

Tianamen1:
In 2007, petrol was N75 per litre and the dollar was between 120 to 150 naira.
Today, petrol is 750 per litre and the dollar is between 1200 and 1500 naira.

can you not see the parallels?

nairalanda1:
Yes, and thus my point....we cannot rely on oil all the time

Naira had more value when oil was above 100 dollars. Now that it has gone through chronic low oil prices and is still below 100 dollars since 2014, except for a brief period of two years, the above is the result.

You want the naira to stay strong, you and APC Need an industrial economy. And tinubu is not doing that, like all his predecessors. Here we are.

But you guys think that once we share oil money well, we would have a good economy. Yes, all of you on this site. That is why ye cannot see my message.


Anyway, Nigeria must industrailize.

That is all for you folk.

Tianamen1:
You're not understanding me. We as black people are looked at as incompetent by the rest of the world. Of all countries facing economic crisis, Nigeria is amongst the worst. When studied, our crisis makes no sense. it seems like we are a nation of fools. My hope is that you understand the points I am making, so the discussion on how Nigeria got into this mess and what needs to be done to secure its future may be enriched.

If you read through my conversations with you last year, you will find that I almost perfectly predicted the outcome of the decisions you fought for. If you even go further through my posts on Nigeria, you will see I predicted when this escalation was to occur. for at least six (6) years I have said that the solution to Nigeria's problems was to tax wealthier people and to provide health care and basic education for the poor and I still hold on to this belief.

You are in Nigeria. You may be okay with the current economic crisis but a lot of people are suffering. Reaching a common understanding of this crisis and changing public opinions is essential for moving Nigeria forward.

nairalanda1:
Your last paragraph shows you don't get my point.

I'm not happy either. But the thing is, we differ on the solutions

kennyz247:
Tinubu has finally taking Nigeria one no step forward and 20 steps backward

pobosky20:
Please correct the headline to read "fuel already selling at 1000/litre". We here in kaduna have been experiencing scarcity in silence since last week. God will not help us,na we we go help ourselves.