₦airaland Forum

Sheuns:
Bring your facts. Crude oil never sold for $145 at any time during Obj’s tenure as both president and head of state.

Okay it was Yar'adua but OBJ sold $120 didn't he? How exactly did that defeat the message? You guys always looking for dragging.

lawani:
Not all commodities have a large amount of it passing through the strait of Hormuz. Oil is the main commodity in that category.

When crude oil price increases internationally then there is no reason why pms price will not increase. Do I think pms can be sold in Nigeria at less than 600 even now? Yes but you can't tell a private company how much to sell. The sector is deregulated, therefore the market forces will determine the price

You have not answered my questions,
Buh I will just ask these one Only,

What had the strait of Hormuz got to do with us , and how can it still affect the price,

Remember our crude is sourced locally, or does it had to pass thru same strait of Hormuz, before it gets home

Sheuns:
Reserving some part of what you have in your backyard for your family consumption and selling the excess is not subsidizing.

Then you don't know what subsidizing is.

do4luv14:
You have not answered my questions,
Buh I will just ask these one Only,

What had the strait of Hormuz got to do with us , and how can it still affect the price,

Remember our crude is sourced locally, or does it had to pass thru same strait of Hormuz, before it gets home

Nigeria is not the highest producer of coffee. Ethiopia is. If something causes a fall in production in Ethiopia then price will rise and Nigeria will benefit. Oil price is not stable in the same way and you don't expect Nigeria to sell lower than the going price just because it is not passing through the strait of Hormuz. If you make garri, can you sell it lower than the market price because it is not passing through the strait of Hormuz?

lawani:
Nigeria is not the highest producer of coffee. Ethiopia is. If something causes a fall in production in Ethiopia then price will rise and Nigeria will benefit. Oil price is not stable in the same way and you don't expect Nigeria to sell lower than the going price just because it is not passing through the strait of Hormuz. If you make garri, can you sell it lower than the market price because it is not passing through the strait of Hormuz?

You still shifting the question,

By these your explanation, is it safe to say Dangote and to a very very Large extent bought their crude oil from outside??

Or wasn't the crude sold to them in Naira??

givedemwotowoto:
This one is different from subsidy payments. Let’s use a simple Math:

You sell tomatoes produced from your farm. It costs you N500 to produce each basket. You sell each basket for N1,000 locally. In the international market, you sell $2, that’s the global price.

There is flood somewhere in Australia where a lot of tomatoes are also produced, so demand abroad pushes global price to $4.

You still produce it for N500, nothing changed.

As a tomato company funded with the tax money of your community members, will you raise the price for locals to N2,000 just because the global price changed, even when your N500 production cost didn't change?

Yeah but if the company keeps its products at the same price, there's an 'opportunity cost' for that, and it's still a form of 'subsidy' or 'under-recovery' (which is the fancy term the NNPC under Buhari tried to use to mask the term 'subsidy'.

If there's an opportunity to sell at N2000 and make a profit of N1500 per basket, but the tomato company chooses to keep it's price at N1000, that additional profit of N1000 which the company forfeits to keep prices low for its community is still referred to as 'subsidy' in economics.

obailala:
Yeah but if the company keeps its products at the same price, there's an 'opportunity cost' for that, and it's still a form of 'subsidy' or 'under-recovery' (which is the fancy term the NNPC under Buhari tried to use to mask the term 'subsidy'.

If there's an opportunity to sell at N2000 and make a profit of N1500 per basket, but the tomato company chooses to keep it's price at N1000, that additional profit of N1000 which the company forfeits to keep prices low for its community is still referred to as 'subsidy' in economics.

So the key discussion is whether or not Nigeria should return to the slippery slope of subsidy payments.

Dangote has already reduced his petrol price due to public outrage and people asking tough questions, because everything I described was possible, while some people are still online explaining and defending nonsense

givedemwotowoto:
Dangote has already reduced his petrol price due to public outrage and people asking tough questions, because everything I described was possible, while some people are still online explaining and defending nonsense

Defending?

I only explained basic economics 101 to you on why the price increased and you think that's "defending"? Well, it's not my fault if the elementary explanation I gave flew over your head for you to term it 'nonsense'.

There are several avenues for Dangote to reduce it's price if it wants to, they can simply choose to reduce their 'profit margin' and that can help reduce the price. But my point was that if NNPC chooses to sell crude cheaper than global prices to Dangote, then that's a form of subsidy. That is all I said, but if your brain chooses to interpret this as me 'defending' the price rise, then I cant really help you.


...by the way, the ever greedy Dangote didn't reduce his price because of any public outrage or tough questions, he reduced his price cos global oil prices dropped in the last few days.

Mrtaye:
Corruption fighting back

Thank goodness you agree that subsidy is corruption laden

Mrtaye:
You are not just all about business but also about the welfare of your people

who is this you you are referring to
how many people welfare have you done in last 5yrs?
why will an adult expect another adult to carry his responsibilities if he's not a thief?

Your analogy is gbajue because you're not doing any favour here ...no be rocket science ooo

Cromagnon:
who is this you you are referring to
how many people welfare have you done in last 5yrs?
why will an adult expect another adult to carry his responsibilities if he's not a thief?