₦airaland Forum

Darmi21:
Dangote is really holding Nigerians hostage through the federal government

It is now Dangote holding Nigerians hostage and not free market forces determining petrol prices as subsidy is free money for rich as you guys said?

Maj196:
Dangote is more of a curse than a blessing to Nigerians

When petrol was subsidized, you guys said it was free money for the rich and it has to be removed. Now it has been removed and you talking about blessings and curses?
How is that related to oil prices and the crises in the Middle East?

Atheistan:
Stop spreading lies, stop making references to political ideas you know nothing about, throwing words around like communism like you have an idea what you are talking about. Then having your bots like all your posts.

China is a communist state, Vietnam is a communist state.
Are they queuing up for bread.?

Which China is a communist state?

Gboss247:
If NNPCL refineries were operating, a litre litre of petrol will be selling close to ₦2,000 by now.

How would NNPCL be able to compete with others esp Dangote who are selling it for far less?

That's where competition will set in which will eventually drive the price downwards.

Currently,there is no refinery competing with Dangote,hence he can increase the way he wants.

Which way Nigeria? Are we really going to come out of this anytime soon?

Gboss247:
So oil prices is rising in the international market because there no competition according to you?

Okay Einstein, explain why crude oil that's being drilled and refined in Nigeria and sold to Nigerians in Nigeria is affected by international market prices?

bentenny:
How would NNPCL be able to compete with others esp Dangote who are selling it for far less?

That's where competition will set in which will eventually drive the price downwards.

Currently,there is no refinery competing with Dangote,hence he can increase the way he wants.

One of the major problems of an average is preferring illusions over reality.
Everybody knows that the Petroleum Industry Acts 2021 (PIA) signed into law in December 2021 when petrol subsidy removal deadline around June 2023 which Tinubu removed in his inaugural speech. Every educated person knows that petrol prices now depends directly controlled by oil prices.

abah001:
Nothing this dangote put hand go dey cheap. He is milking us all just to Maintain the record of richest in world list. We need more refineries from various tribes and cement to kick against this Monopoly and to bring competition. If not we will continue to be slave in his hand

When crisis in the Middle East started, citizens of other countries demanded subsidizes from there government while a citizen suffering and smiling here is quoting imaginary monopoly and competition theories.

Tareq1105:
Any sector of the economy where Dangote is involved, there's bound to be exploitation.

The same thing he did in cement manufacturing is what he's doing in petroleum products now.

Tinubu should give import license to all marketers, stop giving Dangote our crude. Dangote should go and get his crude from anywhere and he's free to sell it at any price he likes if he gets buyers. Matrix and Bovas petroleum should be encouraged. They've always been fair in their pricing.

Nigeria is the only where a citizen buys expensive substandard imported petrol and be calling it cheap.

motionarena:
Dangote please take your refinery to Ghana we no want again
Fuel price has not been stable for 2 days since you brought this curse upon

Was it Dangote or Tinubu to announced subsidy is gone in May 2023?

Kukutente23:
Being able to afford it is not the subject
The subject is high fuel price and your silly taunts
Why should I be buying fuel at N1450 in a country where the minimum wage is N70,000?
Who cursed zombies to think they are born to suffer

The higher the minimum wage in naira, the higher the prices of goods and services in naira.

Gboss247:
One of the major problems of an average is preferring illusions over reality.
Everybody knows that the Petroleum Industry Acts 2021 (PIA) signed into law in December 2021 when petrol subsidy removal deadline around June 2023 which Tinubu removed in his inaugural speech. Every educated person knows that petrol prices now depends directly controlled by oil prices.

So which PIA act stated that PMS will become 2k per litre?

Competition lowers prices.

Gboss247:
The higher the minimum wage in naira, the higher the prices of goods and services in naira.

So why the distortion in fuel price if you claim it's simply down to minimum wage
Are you aware that prices of foodstuffs are shooting up again? Has there been minimum wage increase recently?

Kukutente23:
So why the distortion in fuel price if you claim it's simply down to minimum wage
Are you aware that prices of foodstuffs are shooting up again? Has there been minimum wage increase recently?

Petrol price move along with oil prices and inflation is powered by the money the government inject into circulation combined with money created by financial institutions and taxation.

bentenny:
So which PIA act stated that PMS will become 2k per litre?

Competition lowers prices.

The PIA is the reason subsidy was removed from petrol been the last petreloum products with subsidy meaning that all petroleum products are now determined by oil prices.
The prices of everything you buy as a Nigerian in Nigeria is controlled by government and not some imaginary competition theory.

Gboss247:
The PIA is the reason subsidy was removed from petrol been the last petreloum products with subsidy meaning that all petroleum products are now determined by oil prices.
The prices of everything you buy as a Nigerian in Nigeria is controlled by government and not some imaginary competition theory.

You are mixing up subsidy removal, regulation and competition.

The PIA provided the framework for deregulation,but subsidy removal itself was a government policy decision in 2023.

Also, PMS prices are not determined by crude oil prices alone; exchange rate, refining cost, transportation, logistics, taxes and supply conditions all matter.

Most importantly, subsidy removal does not mean competition has disappeared. The PIA actually provides for competition and prohibits practices such as price fixing and market sharing.

So the real issue is not whether government regulates the sector..it should. The question is whether multiple refineries and suppliers can genuinely compete.

And yes,cheaper fuel is not instant. If domestic refining increases, the benefits will depend on refinery efficiency, crude availability, logistics and, importantly, the strength and stability of the naira.

Gboss247:
Petrol price move along with oil prices and inflation is powered by the money the government inject into circulation combined with money created by financial institutions and taxation.

You've not made a strong case for the earlier attempt to paint inflation as exclusively due to wage increase
Your claim about petrol price is watery. There's no one stop price for crude in the International market. Crude price varies

bentenny:
You are mixing up subsidy removal, regulation and competition.

The PIA provided the framework for deregulation,but subsidy removal itself was a government policy decision in 2023.

Also, PMS prices are not determined by crude oil prices alone; exchange rate, refining cost, transportation, logistics, taxes and supply conditions all matter.

Most importantly, subsidy removal does not mean competition has disappeared. The PIA actually provides for competition and prohibits practices such as price fixing and market sharing.

So the real issue is not whether government regulates the sector..it should. The question is whether multiple refineries and suppliers can genuinely compete.

And yes,cheaper fuel is not instant. If domestic refining increases, the benefits will depend on refinery efficiency, crude availability, logistics and, importantly, the strength and stability of the naira.

The PIA 2021 deregulated the sector which means government should not longer control petroleum products prices with subsidy. Petrol been the only subsidized by initially scheduled for removal in 2022 which the federal government then kicked against and postponed it to June 30th, 2023. You can't signed a law that deregulates a particular sector and still be paying subsidy, that is hypocrisy.
Finally, there is nothing like competition. It illusion designed to blindfold the masses from reality keeping them in the rat race.
The only way which more refineries will reduce petroleum products prices is when when join Dangote refinery to export and earn more forex increasing the forex in supply and forex reserve hence naira appreciates against the dollar which reduces price.
This refineries have to owned by Nigerians not some foreign investors.

Gboss247:
The PIA 2021 deregulated the sector which means government should not longer control petroleum products prices with subsidy. Petrol been the only subsidized by initially scheduled for removal in 2022 which the federal government then kicked against and postponed it to June 30th, 2023. You can't signed a law that deregulates a particular sector and still be paying subsidy, that is hypocrisy.
Finally, there is nothing like competition. It illusion designed to blindfold the masses from reality keeping them in the rat race.
The only way which more refineries will reduce petroleum products prices is when when join Dangote refinery to export and earn more forex increasing the forex in supply and forex reserve hence naira appreciates against the dollar which reduces price.
This refineries have to owned by Nigerians not some foreign investors.

Deregulation and subsidy removal being connected,does not make competition an illusion.

The subsidy was already scheduled for discontinuation long before the 2023 transition,and the Tinubu administration formally ended it on May 29, 2023.

But deregulation does not mean there is no competition..it means suppliers are expected to compete without government subsidising the selling price. The PIA also provides a regulatory framework for preventing anti-competitive practices such as market sharing and rate fixing.

More importantly,exporting refined products to earn forex can strengthen supply and potentially support the naira, but it is not the only mechanism by which more refineries can reduce prices.

Greater domestic supply can reduce dependence on imported products, shipping and other import-related costs, while competition can pressure producers to improve efficiency and pricing.

And whether a refinery is Nigerian-owned or foreign-owned isn't that imperative,what matters economically, is cost of production, crude supply, efficiency, access to finance, logistics, exchange rate and competition.