₦airaland Forum

It will make Christmas shopping easier

pendy79:
Hold your breathe though the price drop is in the STATES and not Naija. Why do we still have pump price of petrol at N97 per litre if crude is going at the lowest in 4years.

Importers are getting at reduced prices hence the differential should be felt by the populace.
Where is the Labour Congress, civil society groups, Human rights activists something isn't right in Nigeria. Across Europe and America fuel prices are dropping yet it is stagnant and remained same price when crude was going for $145/barrel now it is $74/barrel why are nigerians still paying same rate.

Government should tell us where the subsidy claim budget will be used for since crude price differential is now consumed by the current prices.

Where are the opposition in Nigeria? Crude prices are down, cost of buying the p
roduct is down too so why are Nigerians still paying N97. Nigerians were made to pay more when crude prices when up, now it is down to its lowest in years then the price of petrol should drop.

MODs seun ngwakwe obinoscopy mynd44 help move this thread so awareness can get to Nigerians to demand a cut in price for pump price of petrol and diesel.

Just hope the guys you mentioned don't move this thread to foreign affairs instead of front page since its one more news that indict Jonathan as an insensitive and incompetent fraudster.

Obinoscopy:
Bros Nigeria is an oil producing country. The price of crude oil in the international market wouldn't affect the cost price of petrol in Nigeria (we've never paid a dime for crude oil product, why should we, when we produce it?). Rather what would affect the cost price of petrol in Nigeria is the cost of refining crude oil in the international market.

So it means this your criticism doesn't hold water. A true economist knows that it doesn't hold water .

Really I'm perplexed seeing your write up on this thread.
Barcanista, gbawe, berem obiageli patrickmuf desola ngeneukwenu come see response of our mod on nairaland o

anonimi:
Firstly our labour union looters should be more concerned about the DISPARITY between the ridiculous N18,000 minimum wage and the mega millions collected by our elected public servants working for the SAME government.

Now to the falling crude price and pump retail petrol price. Why should any SANE person expect a reduction in the pump price without first verifying the % subsidy currently paid by the government COMPARED to the recent fall in crude prices, which may not be fully reflected by those supplying us REFINED fuel.

The situation would have been much different if we had all endorsed Jonathan's proposal two years ago to completely remove subsidy, liberalise the sector and collect REVENUE from investors instead of paying to importers.
We allowed ourselves to be MISLED by the clueless trade unions and political opposition who ONLY wanted to score cheap political points.

My arguement is simple Goverment increased fuel.pricing two years ago stating the huge cost of crude in the international market, now if the justification for increasing is no longer there why still maintain same price regime when you're paying less to bring in same product into the country

pendy79:
Really I'm perplexed seeing your write up on this thread.
Barcanista, gbawe, berem obiageli patrickmuf desola ngeneukwenu come see response of our mod on nairaland o

The guy doesn't know anything other than moving pro-PDP threads to the frontpage! Obinoscopy is in the same class with chukwudi44! They are just ignorant folks!

NgeneUkwenu:
The guy doesn't know anything other than moving pro-PDP threads to the frontpage! Obinoscopy is in the same class with chukwudi44! They are just ignorant folks!

+40000000likes and shares!

NgeneUkwenu:
The guy doesn't know anything other than moving pro-PDP threads to the frontpage! Obinoscopy is in the same class with chukwudi44! They are just ignorant folks!

I see. I no know say na the only duty he was selected for be that

Seeing folks here trying to justify the price indifference to the global drop in crude oil price is laughable... Government should in this instance reduce the price if it's Nigerians first as they'll rather have us believe...

pendy79:
The silence of the labour unions and the civil society in Nigeria is deafening.

The Nigerian Labour Congress is either dead or bought over(?) The NLC secetariat building at Yaba in Lagos is now an event/party hall

Obinoscopy:
Bros Nigeria is an oil producing country. The price of crude oil in the international market wouldn't affect the cost price of petrol in Nigeria (we've never paid a dime for crude oil product, why should we, when we produce it?). Rather what would affect the cost price of petrol in Nigeria is the cost of refining crude oil in the international market.

So it means this your criticism doesn't hold water. A true economist knows that it doesn't hold water .

bros This is a very simple economics. Let me explain..

If Crude Oil price is on the high side, the importers pay more due to the cost of production that have effect on the refined product. Oil Merchants are not charities, hence will want to recover cost and make profit. The government spend more on subsidy.

When the Crude oil price is on the low side, cost of production reduces, cost of refined product falls, importers pay less than what they used to and less the government spend on subsidy.

With the drop of global oil price, it is natural that the price of pump price of petrol fall in Nigeria is government is to maintain what it appropriated for subsidy or the government review what it spend on subsidy to reflect on current bills and use the leftovers to tackle capital project.


@ pendy79 thanks for the mention.

barcanista:
bros This is a very simple economics. Let me explain..

If Crude Oil price is on the high side, the importers pay more due to the cost of production that have effect on the refined product. Oil Merchants are not charities, hence will want to recover cost and make profit. The government spend more on subsidy.

When the Crude oil price is on the low side, cost of production reduces, cost of refined product falls, importers pay less than what they used to and less the government spend on subsify.

With the drop of global oil price, it is natural that the price of pump price of petrol fall in Nigeria is government is to maintain what it appropriated for subsidy or the government review what it spend on subsidy to reflect on current bills and use the leftovers to tackle capital project.


@ pendy79 thanks for the mention.

I kinda find it rather baffling that with the kind of information in the public domain somebody can still say this. Even imagine him saying "WE DON'T PAY A DIME FOR REFINED PETROLEUM PRODUCT SINCE WE PRODUCED IT"

With all the hues and noise surrounding the petrol pump price hike in 2012 and the revelation from.the subsidy fraud cabal. For someone who.is a MOD saying that shows the nation is in a bad state and this forum need to do a check on on itself.

Ngwakwe once argue with me about Buhari allowing emir of Gwandu bringing in 53suitcases of money into.the country and now this one saying Nigeria pump price of petrol is insulated from international crude price.

And these two are moderators..... Hmmmm

pendy79:
I kinda find it rather baffling that with the kind of information in the public domain somebody can still say this. Even imagine him saying "WE DON'T PAY A DIME FOR REFINED PETROLEUM PRODUCT SINCE WE PRODUCED IT"

With all the hues and noise surrounding the petrol pump price hike in 2012 and the revelation from.the subsidy fraud cabal. For someone who.is a MOD saying that shows the nation is in a bad state and this forum need to do a check on on itself.

Ngwakwe once argue with me about Buhari allowing emir of Gwandu bringing in 53suitcases of money into.the country and now this one saying Nigeria pump price of petrol is insulated from international crude price.

And these two are moderators..... Hmmmm

this is why we need to continually enlighten Nigerians. The Mods and Admin are clearly not neutral.

Nairaland is fast becoming a joke, aswear. What reasons would any sane fellow give for moving this to the foreign section?! Whoever did this, did it because he wants this thread to die down!

barcanista:
this is why we need to continually enlighten Nigerians. The Mods and Admin are clearly not neutral.

He has yank the post off politics section to foreign.affairs.

Barcanista obiageli berem ngeneukwenu gbawe patrickmuf arch1 ilugunboy

barcanista:
bros This is a very simple economics. Let me explain..

If Crude Oil price is on the high side, the importers pay more due to the cost of production that have effect on the refined product. Oil Merchants are not charities, hence will want to recover cost and make profit. The government spend more on subsidy.

When the Crude oil price is on the low side, cost of production reduces, cost of refined product falls, importers pay less than what they used to and less the government spend on subsidy.

With the drop of global oil price, it is natural that the price of pump price of petrol fall in Nigeria is government is to maintain what it appropriated for subsidy or the government review what it spend on subsidy to reflect on current bills and use the leftovers to tackle capital project.


@ pendy79 thanks for the mention.

We are an oil producing country. We export crude oil to those countries that ultimately refines the product into petrol for onward sales to oil merchants. Did you factor it into the equation?

You say the decrease in crude oil will decrease the cost of production of petrol, I agree. But by what margin? The cost production of petrol is not directly proportional to the cost of crude oil. Rather it's partly proportional (cost of production∝cost of raw materials [crude oil] + cost of process [refining]). This is because we have to factor in other costs such as the cost of refining the said crude oil (the cost/price of refining crude oil didn't drop, it's the price of crude oil that did.)

The reduction in the international price of crude oil doesn't affect us positively because we are exporters of the product. Rather the reduction affect us negatively. Our revenue has dropped. This means that the budget for subsidy will be affected. If anything, the price of petrol might increase if this trend continues.

P.S. If our downstream and upstream sector had been fully deregulated and subsidy removed then it would have been a different story.

Obinoscopy:
We are an oil producing country. We export crude oil to those countries that ultimately refines the product into petrol for onward sales to oil merchants. Did you factor it into the equation?

You say the decrease in crude oil will decrease the cost of production of petrol, I agree. But by what margin? The cost production of petrol is not directly proportional to the cost of crude oil. Rather it's partly proportional. This is because we have to factor in other costs such as the cost of refining the said crude oil.

The reduction in the international price of crude oil doesn't affect us positively because we are exporters of the product. Rather the reduction affect us negatively. Our revenue has dropped. This means that the budget for subsidy will be affected. If anything, the price of petrol might increase if this trend cobtinues.

P.S. If our downstream and upstream sector had been full y deregulated and subsidy removed then it would have been a different story.

I really don't give a flying Bleep how many tines you update and modify your earlier post on this thread.

But can you explain why it was moved to foreign affairs? What's the diplomatic issue contained in this post?

Obinoscopy:
We are an oil producing country. We export crude oil to those countries that ultimately refines the product into petrol for onward sales to oil merchants. Did you factor it into the equation?

You say the decrease in crude oil will decrease the cost of production of petrol, I agree. But by what margin? The cost production of petrol is not directly proportional to the cost of crude oil. Rather it's partly proportional (cost of production∝cost of raw materials [crude oil] + cost of process [refining]). This is because we have to factor in other costs such as the cost of refining the said crude oil (the cost/price of refining crude oil didn't drop, it's the price of crude oil that did.)

The reduction in the international price of crude oil doesn't affect us positively because we are exporters of the product. Rather the reduction affect us negatively. Our revenue has dropped. This means that the budget for subsidy will be affected. If anything, the price of petrol might increase if this trend continues.

P.S. If our downstream and upstream sector had been fully deregulated and subsidy removed then it would have been a different story.

bros before I engage you, can you tell why the thread is in Foreign Affairs and not politics? This is unacceptable bros. Pendy79 or someone once made this prediction and now it has been justified

pendy79:
I really don't give a flying Bleep how many tines you update and modify your earlier post on this thread.

But can you explain why it was moved to foreign affairs? What's the diplomatic issue contained in this post?

I can safely say it is either you don't want people to be aware that there should be reduction on the pump price of petrol or you are too ashamed for more people to see how ignorant your arguement was.

It's okay then. Live with the consequence and your conscience.

pendy79:
Can't really comprehend the incoherent write up.you.put up here. "The price of crude oil in the international market won't affect the price of petrol in Nigeria"

How did you become a MOD on this forum if this is the way you reason? The imported petrol is refined from your pee or what? Are the importers buying at the rate they were few months ago.

If you lack comprehension about something why not just keep quiet rather than show ignorance. How can somebody in this modern age say crude oil price on the international market cannot determine the price of petrol in Nigeria. Is Nigeria on a planet on its own?

Seun what is your criteria for selecting people as MOD

I had wanted to ignore this post of yours cos it appears you can't make any argument without resorting to insults. But let me oblige you.

This crude oil that you are talking about, are we also producing them? The answer is obvious. Yes we produce them.

Now the next question is this. Do we produce them in large quantities that it would be large enough for local use and still there'd be much left for export? The answer yet again is obvious. Yes, it's large enough for export.

Now this leads us to the next question. Do we refine 100% of our crude oil meant for local consumption? The answer is an emphatic No.

Ok, now let's be more practical. Assuming a barrel of crude oil is $100 and the cost of refining it internationally was $40 (and cost of local refining be $10). Also assuming that we produce 10 million barrel per day but need a million for local consumption.

This means we can decide to sell just 9 million barrel of crude oil (revenue will be $900 million) and then refine the remaining one million barrel locally (expenditure will be $10 million). But since we don't refine locally we have no choice but to sell the whole 10 million barrel of crude oil (revenue $1 billion) and then import 1 million barrel of petrol. Whatever effect the international price had on the cost of importation of the petrol can be offsetted by the difference between $1 billion and $900 million (which is $100 million, I call it the cushioning money [I presume that's were our subsidy budget is calculated from]).

However, if the international price of crude oil drop from $100 then it means our revenue will dwindle and the cushioning money will dwindle. If anything, the reduction in international price of crude oil wld lead to an increase in fuel price over time. Not a decrease.

barcanista:
bros before I engage you, can you tell why the thread is in Foreign Affairs and not politics? This is unacceptable bros. Pendy79 or someone once made this prediction and now it has been justified

I wasn't the one who moved it. But whoever moved it, did it because the reduction in the international market should be a thing of jubilation for importing countries not exporting countries. And since Nigeria aint an importing country, this means this thread belong to the Foreign Affairs Section.

Obinoscopy:
I had wanted to ignore this post of yours cos it appears you can't make any argument without resorting to insults. But let me oblige you.

This crude oil that you are talking about, are we also producing them? The answer is obvious. Yes we produce them.

Now the next question is this. Do we produce them in large quantities that it would be large enough for local use and still there'd be much left for export? The answer yet again is obvious. Yes, it's large enough for export.

Now this leads us to the next question. Do we refine 100% of our crude oil meant for local consumption? The answer is an emphatic No.

Ok, now let's be more practical. Assuming a barrel of crude oil is $100 and the cost of refining it internationally was $40 (and cost of local refining be $10). Also assuming that we produce 10 million barrel per day but need a million for local consumption.

This means we can decide to sell just 9 million barrel of crude oil (revenue will be $900 million) and then refine the remaining one million barrel locally (expenditure will be $10 million). But since we don't refine locally we have no choice but to sell the whole 10 million barrel of crude oil (revenue $1 billion) and then import 1 million barrel of petrol. Whatever effect the international price had on the cost of importation of the petrol can be offsetted by the difference between $1 billion and $900 million (which is $100 million, I call it the cushioning money [I presume that's were our subsidy budget is calculated from]).

However, if the international price of crude oil drop from $100 then it means our revenue will dwindle and the cushioning money will dwindle. If anything, the reduction in international price of crude oil wld lead to an increase in fuel price over time. Not a decrease.

Sorry I don't read idiotic posts, I asked a simple question, what made this thread eligible for transfer to the foreign affairs section? If you can't provide an answer then leave it. Ive since moved on. Educate yourself you need it more than I do. I gat little time for rubbish

pendy79:
Sorry I don't read idiotic posts, I asked a simple question, what made this thread eligible for transfer to the foreign affairs section? If you can't provide an answer then leave it. Ive since moved on. Educate yourself you need it more than I do. I gat little time for rubbish

Yimu

Bros, try to smile often. It helps . I've explained to Barcanista why the probable reason why the thread was moved.

NwaNimo1:
its also imported (refined fuel)

when I think of things like this, water dey commot for my eye.

Obinoscopy:
I wasn't the one who moved it. But whoever moved it, did it because the reduction in the international market should be a thing of jubilation for importing countries not exporting countries. And since Nigeria aint an importing country, this means this thread belong to the Foreign Affairs Section.

Bros you still don't understand. This thing affects us in both ways. While it reduces our revenue, it also reduces what we spend on importation. As for revenue, the government put the benchmark of petrol at $75 per litre. However, it definitely affects our petrol import and Sir, it is funny how you don't see this.

As for the thread, your excuse is unacceptable!! This thread is supposed to be in Politics not. Foreign AffÀirs

barcanista:
Bros you still don't understand. This thing affects us in both ways. While it reduces our revenue, it also reduces what we spend on importation. As for revenue, the government put the benchmark of petrol at $75 per litre. However, it definitely affects our petrol import and Sir, it is funny how you don't see this.

As for the thread, your excuse is unacceptable!! This thread is supposed to be in Politics not. Foreign AffÀirs

Did you read the title of the thread?

"Hurray!! Drivers Jubilate As Fuel Prices Goes Two Year High. Thanks To Crude Drop and Subsidy Loss"

Which drivers are jubilating? It certainly ain't ours.

The current downward trend of our crude oil isn't sth Nigerians should be jubilating about. Maybe if the thread had read "Oh No!! Drivers Cry As Fuel Prices Goes Two Year High. Thanks To Crude Drop" then it might be moved to Business section

anonimi:
Why are you MISINFORMING others
For what benefit?

- Are mobile phones, Sim cards and call rates not lower than 2001
- Did Dangote & BUA not just reduce their cement price due to glut [more production/supply than demand] as a result of the successful liberalisation of that sector?

na only one like and two share u get,na Me Come click one like Come complete am two.on a serious note if the marketers can bring it down I will most happy