₦airaland Forum

Islie:
https://punchng.com/petrol-to-hit-n1000-litre-as-crude-crosses-70-marketers/#google_vignette

Very sad that the white man has to decide how much we will buy oil that God has put freely in the ground under our homes like well water.

One day they may decide how much we will sell garri that we make from our own cassava too.

nairalanda1:
Doesn't work that way

If the price of crude is increasing, then the price of petrol must increase. That's how it happens normally. It's only here in Nigeria that subsidy of five decades prevented us from seeing reality

Dangote is buying crude at international price. When he reduced prices, crude was at 54 or less per barrel. Now that it is at 70 , it follows prices have to go up. No three ways about it

You have said it all.

NinjaMetahuman:
they are not borrowing to pay subsidy, they are borrowing to give you stuff like coastal highways, sokoto super high ways, etc.


Do you know why Jonathan failed despite have highest crude sale, depleting foreign reserve, and borrowing heavily to pay salary yet zero legacy infrastructure to his name?

If you have a clue to the answer, then you will know.

Wale Edun has a clue to the answer.

Will you listen to him instead of propagating the lies that brought us this All Promises Cancelled, APC calamity 11 years ago

thisweekng:
The Minister of Finance and Coordinating Minister of the Economy Chief Olawale Edun has said the last time Nigeria’s economy looked stable was about a decade ago.

He made this statement during his maiden press conference as Minister of Finance where he outlined President Bola Tinubu’s vision, agenda and strategy for the economy.

He said, “I think as we all know, we are not where we should be. The economy is barely growing above the rate of population growth.

“But it was not always so, and I think in trying to look at the way forward, if we now have a situation of slow growth, double-digit inflation, weak/depreciating exchange rate, as well as security concerns that are resulting in an economy that is not growing and not taking Nigerians out of poverty.

“If we think back to the last time when the economy was stable- when it was growing, when inflation was low, and the interest rate was affordable, that period was about a decade ago. Growth was about 6% in 2013 and 2014.”
Private sector to drive the economy

https://nairametrics.com/2023/09/01/the-last-time-nigerias-economy-was-stable-was-about-a-decade-ago-wale-edun/

Tooreda:
The irony of this is that you may be living below the poverty line.

Perhaps, but the sad truth is, the cost of things does not have respect for how much we earn.

Also if we do as you suggest indirectly and set prices by what people earn, many people won't be able to get away from poverty

emmaitive:
you are typically agbado or apc evil cult party called apc.

So what was I in 2012 when I was supporting the removal of subsidy by GEJ then? And tinubu was opposing it?

Iamzik:
But the debt is still growing despite the removal. Even the president is going abroad for medical treatment in the name of state visits.

How much was saved from subsidy removal and what was it used for?

If you take unbiased look at all the resultant hardship and inflation that followed this unplanned subsidy removal you will see that it is actually cheaper for government to pay the subsidy provided they plug all the leakages and inefficiency around subsidy payment. Many companies were making fake subsidy claims without importing fuel and that quadrupled the subsidy cost.

Subsidy in itself is not bad like APC tried to convince Nigerians. Every country have subsidy... education, healthcare, oil etc. Removing every form of subsidy and increasing taxes, floating dollar, hiking interest rates etc are very conflicting policies but let's keep defending it because we belong to APC

1. The debt would have been growing even more if subsidy was still there.

2. Countries that have subsides also charge tax at a rate that makes tinubu tax reforms look gentlemanly and kind hearted. And they are not for everyone.

3. Also many of those countries have massively diversified economies. Unless apc has changed its ways, our economy is not diversified and is infact in a mess. Keeping subsidies would make them worse

4. But then again, call your senator and ask them to pass a law that would reintroduce subsidy. It's that simple. I'm not opposed to anyone doing that.

jaxxy:
Are we still importing??



That's not what increases international crude prices and its not affected by fluctuations in crude price. Those are fixed costs so its not a reason for our prices to go up or be so expensive.

Okay so if you were a baker and the price of flour and sugar went up by 100 percent, would you keep selling bread at the same price?

That's t the problem with your argument right there

FatimaAbubakar:
Cheap propagandist. One thing I've observed about you is that you're fond of defending the corrupt and incompetent government of APC. Keep deceiving yourself. Na una go still suffer am. Tueh!

I am not defending the evil apc..I am defending the right of a businessperson to make a profit on whatever they sell, ditto manufacturers.

Plus I held these views since 2011. Was apc in power then,and weren't buhari and tinubu in opposition then?

NelbromTech:
Now that the government has removed subsidy, where the money enter? Are you seeing the money in electricity, security, Healthcare and others?

That leads us to why I don't support this government, something I have explained several times here

In brief, Nigeria is not making enough money because we have incompetents at the top

Period

CandidSeeker:
Very sad that the white man has to decide how much we will by oil that God has put freely in the ground under our homes like well water.

One day they may decide how much we will sell garri that we make from our own cassava too.

It is the market not the white man.

udeh3:
My question is simple, especially for those who travels regularly to the middle east: As the international crude price increases, for Oil producing nation, does it affects them in terms of pump price increases?

I'll be waiting for response, cos in Iran, Libya, fuel is almost free!

Iran has a massive debt and deficit as a result in part of maintaining subsides, not just on fuel but also on food and other things. It also loses billions in smuggling of subsidized fuel to Pakistan of all the places

Libya has about less than eight million people and produces about the same amount of crude as does Nigeria. That's why it can afford massive subsides and good refineries. If it had a high population like ours it would be problematic

esemes256:
If crude oil price rises by 3 to 4%, shouldn't the price of petrol also rise by only 3 to 4%?
Why is petrol price rising by about 14% for a 3% rise in crude oil price?
Why are prices so easy to rise but slow to drop down?

Refining and transport costs as well as worker salaries

Harrisonwo:
I'm more interested in seeing if T-pain will still borrow to fund the 2026 budget.
Benchmark was approximately $65/b, if it crosses $70/b then we should have surplus and a boost in foreign reserves since they don't pay petrol subsidy

He will still borrow.

Because the debt that has accumulated beforehand still has to be paid from the surplus

Welcome to being a dutch diseased economy. That's why some of us say we don't and have never had good leaders

Omalicious1:
Why is it that happenings around the world always affect Nigeria negatively? I'm asking this because I'm still yet to see an instance where it has affected Nigeria positively. Well, a increase in the price of petrol will always signal an increase in the prices of everything

Petrol prices will be increasing everywhere, even in the USA.

miracle002:
Dangote is getting the crude oil for his industry locally and at subdizised rate. So why is he increasing the price of petroleum just shortly after reducing it

Lol, that's a myth.

Dangote is buying fuel or was buying fuel in naira , which sounds like a subsidy but isn't.

Also he still imports crude for a lot of his needs.

Government has no money to subsidize crude. When it is even struggling to pay power sector what they owe them in legit subsidy claims.

lawani:
You can't expect a fixed price in a deregulated market but the naira that is appreciating will help

True but at the end, our fiscal breakeven is 150 dollars per barrel and 70 dollars is not going to help much. Plus we got to still pay debts.

CandidSeeker:
Very sad that the white man has to decide how much we will by oil that God has put freely in the ground under our homes like well water.

One day they may decide how much we will sell garri that we make from our own cassava too.

Has nothing to do with whites and everything to do with a global standard for oil pricing so that everyone benefits sorta.

Without that global standard, one country fan undersell and make others suffer.

Infact, Russia is selling it's crude cheaply and losing money in the process because sanctions. It also affects other oil producers profits badly

The day Dangote enter petrol , cement pasta business,
Nigerians fell to his knees

nairalanda1:
True but at the end, our fiscal breakeven is 150 dollars per barrel and 70 dollars is not going to help much. Plus we got to still pay debts.

No they made the current budget with a benchmark of just over 60 dollars

Even as exchange rate has dropped considerably to 1385/$

dull analysis...the product is expensive doesnt mean manpower becomes expensive ....e.g bet9ja increased ticket money to 300minimum months ago,dat didnt mean salary increase for worker,spagetti getting expensive doesnt mean salary increase at dangote mills

nairalanda1:
Dangote still has to pay workers salaries that are globally competitive, he also has to pay for maintenance , upgrades and expansions of the refinery and he has to pay for crude at international prices

And the people that drill for crude can't charge cheaper than global price. It's expensive to drill for crude in Nigeria. So prices go up, from crude to petrol

Then why did he increased after NNPC did?

oluayebenz:
Leave the panic to una sef marketers

Petrol price isn't increasing, dangote gat us

Mistersolar:
dull analysis...the product is expensive doesnt mean manpower becomes expensive ....e.g bet9ja increased ticket money to 300minimum months ago,dat didnt mean salary increase for worker,spagetti getting expensive doesnt mean salary increase at dangote mills

anonimi:
Wale Edun has a clue to the answer.

Will you listen to him instead of propagating the lies that brought us this All Promises Cancelled, APC calamity 11 years ago

statement was made two years ago.

It looked steady because Nigeria was selling oil at over 100usd and still borrowing while depleting foreign reserve to subsidize fuel and zero infrastructure to show for it.

Lamentations

nairalanda1:
Dangote still has to pay workers salaries that are globally competitive, he also has to pay for maintenance , upgrades and expansions of the refinery and he has to pay for crude at international prices

And the people that drill for crude can't charge cheaper than global price. It's expensive to drill for crude in Nigeria. So prices go up, from crude to petrol

At this point I don't know what to think again

nairalanda1:
Dangote still has to pay workers salaries that are globally competitive, he also has to pay for maintenance , upgrades and expansions of the refinery and he has to pay for crude at international prices

And the people that drill for crude can't charge cheaper than global price. It's expensive to drill for crude in Nigeria. So prices go up, from crude to petrol

Your MuMu never do.

Everything is working to make Tinubu an O.T.P ... One Term President ...

What is the fg using our oil revenue to do?

Islie:
https://punchng.com/petrol-to-hit-n1000-litre-as-crude-crosses-70-marketers/#google_vignette

Is there a reason why Nigerian articles are so long? This article just rambles on and on saying the same thing multiple times, without providing and substantial analysis.

The 2 targets now should be #500 per liter fuel and #500 per dollar exchange rate. If only Aunty Ngozi was the finance minister now. Na under 6 months she for achieve the 2 targets.