₦airaland Forum

Silly PDP government. They told us in January 2012 that they have awarded the turn around maintenance of all our refineries to the original contractors that build them and that under 6 months, we will be producing to full capacity and won't need to import refined fuel again. We are in december 2014 and we still depend 100% on imported fuel. So, what's the outcome of the TAM they did? Billions have gone down the drain as usual without result. I just can't wait for february 2015 to vote out this government.

jaybiz007:
price no dey fall for naija na.

i concur, gravity of such does not exist in Nigeria

Adesiji77:
Agitators who expect the administration of President Goodluck Ebele Jonathan to reduce the prices of petroleum products may be disappointed, as investigations have shown that it is not currently being considered.It was learnt that the considerations of the federal government is that what should have been a direct benefit to consumers as a fall-out from the crash in the prices of crude oil in the international market has been lost to the devaluation of the Naira.

The Central Bank recently devalued the Naira from a long-standing N155==$ 1 to N168==$1, owing to pressures on the currency at the foreign Exchange market.The Petroleum Products Pricing regulatory Agency, PPPRA, claimed in its Thursday, December 11, 2014, that it was buying products from foreign refineries at the rate of N171.36 ==$1. PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre. When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.

State actors claimed that the federal government now needed much more Naira to buy the products which should have cost consumer more but for the reduction in the cost of crude , as well as, subsidy it pays on the products.Brent prices have fallen to about $ 70 per barrel, with industry experts forecasting further fall to as low as $ 50 per barrel in the months ahead. Products prices across several countries around the globe have been cut by marketers in countries like the United Kingdom where the prices have been deregulated. In that country, ASDA, Tesco, Morrisons and Sainsburry have reduced petrol prices by at least 2 per litre, bringing prices around 112 . 7 per litre.

Malaysia, India, Indonesia and Sri Lanka also officially cut their petroleum products’ prices, some by as much as 6 per cent. The federal government while responding to the development in the international crude oil market has cut 2015 subsidy budget to about N 458.68 billion, down from N 971.14 billion in the current Fiscal Year. It has also reviewed downwards it oil price benchmark twice to avoid being caught napping in the crashing oil prices scenario.

It originally proposed $78 per barrel of oil for the 2015 budget, but later revised to $73 per barrel and lately $65 per barrel. Agitation for the a cut in prices of petroleum products have been mounting with Governor Babatunde Fashola of Lagos State, last week, criticizing the federal government over its reluctance towards reducing the pump price of oil from the current N97 per litre, after a significant decline in crude prices.

The Governor spoke while addressing hundreds of youths at the Lagos State After School Graduation Development Centre, AGDC, IGNITE Employability Project 5, Ikeja. His words, “Now, we should be enjoying cheap fuel if the price of oil has dropped globally. And even as we import the product, a major component has reduced in price. While this has reduced, the pump price of fuel in the country still remains the same. Something is wrong. “If the price increases in the country when the price of oil goes up globally, then it should also reduce when the price of crude oil drops. “I am not an economist but I have some logic and common sense to ask critical questions. For instance, if one buys flour at N10 per kilogram, and the bread is sold at N1 per loaf, if the price of flour drops, the price of the bread should also change”.

The Nigeria Labour Congress, NLC, has also joined the agitation by calling on the federal government to reduce pump prices of petroleum products in line with falling crude prices in the international market as has been done by other countries. General Secretary of NLC, Dr Peter Oso-Eson, told journalists midweek that NLC was worried prices of products have remained static. According to him, ”The area that worries us very seriously is that crude prices are falling. In order countries, what that is immediately translating to, is that the price of petroleum products and pump head is coming down. In the United States, in the last one month, the price of a gallon of petrol, has come down from $3 to $2, in response to this price adjustment. In our country, we are not allowed to enjoy that benefit.

What government is doing is that in order to shore up its naira revenue, it has gone to devalue excessively, the naira; $13 devaluation in one day, and then a continuous process of depreciation. “What that does, is that, because we import petroleum products largely, the gains from the falling price of crude which ought to translate to consumers, is prevented by that devaluation; because, by devaluing the cost of the head price, it might even increase. ”We say that that is wrong and the benefits of the falling price of crude, must be translated to Nigerians. Therefore, going forward, we want a situation in which the pump of petrol and other petroleum products should actually be adjusted downwards.”

- See more at: http://www.vanguardngr.com/2014/12/fg-reluctant-reduce-petrol-price/#sthash.W3BOrn8n.dpuf

...hmmmmmm..i regret being a Nigerian....

Adesiji77:
Agitators who expect the administration of President Goodluck Ebele Jonathan to reduce the prices of petroleum products may be disappointed, as investigations have shown that it is not currently being considered.It was learnt that the considerations of the federal government is that what should have been a direct benefit to consumers as a fall-out from the crash in the prices of crude oil in the international market has been lost to the devaluation of the Naira.

The Central Bank recently devalued the Naira from a long-standing N155==$ 1 to N168==$1, owing to pressures on the currency at the foreign Exchange market.The Petroleum Products Pricing regulatory Agency, PPPRA, claimed in its Thursday, December 11, 2014, that it was buying products from foreign refineries at the rate of N171.36 ==$1. PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre. When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.

State actors claimed that the federal government now needed much more Naira to buy the products which should have cost consumer more but for the reduction in the cost of crude , as well as, subsidy it pays on the products.Brent prices have fallen to about $ 70 per barrel, with industry experts forecasting further fall to as low as $ 50 per barrel in the months ahead. Products prices across several countries around the globe have been cut by marketers in countries like the United Kingdom where the prices have been deregulated. In that country, ASDA, Tesco, Morrisons and Sainsburry have reduced petrol prices by at least 2 per litre, bringing prices around 112 . 7 per litre.

Malaysia, India, Indonesia and Sri Lanka also officially cut their petroleum products’ prices, some by as much as 6 per cent. The federal government while responding to the development in the international crude oil market has cut 2015 subsidy budget to about N 458.68 billion, down from N 971.14 billion in the current Fiscal Year. It has also reviewed downwards it oil price benchmark twice to avoid being caught napping in the crashing oil prices scenario.

It originally proposed $78 per barrel of oil for the 2015 budget, but later revised to $73 per barrel and lately $65 per barrel. Agitation for the a cut in prices of petroleum products have been mounting with Governor Babatunde Fashola of Lagos State, last week, criticizing the federal government over its reluctance towards reducing the pump price of oil from the current N97 per litre, after a significant decline in crude prices.

The Governor spoke while addressing hundreds of youths at the Lagos State After School Graduation Development Centre, AGDC, IGNITE Employability Project 5, Ikeja. His words, “Now, we should be enjoying cheap fuel if the price of oil has dropped globally. And even as we import the product, a major component has reduced in price. While this has reduced, the pump price of fuel in the country still remains the same. Something is wrong. “If the price increases in the country when the price of oil goes up globally, then it should also reduce when the price of crude oil drops. “I am not an economist but I have some logic and common sense to ask critical questions. For instance, if one buys flour at N10 per kilogram, and the bread is sold at N1 per loaf, if the price of flour drops, the price of the bread should also change”.

The Nigeria Labour Congress, NLC, has also joined the agitation by calling on the federal government to reduce pump prices of petroleum products in line with falling crude prices in the international market as has been done by other countries. General Secretary of NLC, Dr Peter Oso-Eson, told journalists midweek that NLC was worried prices of products have remained static. According to him, ”The area that worries us very seriously is that crude prices are falling. In order countries, what that is immediately translating to, is that the price of petroleum products and pump head is coming down. In the United States, in the last one month, the price of a gallon of petrol, has come down from $3 to $2, in response to this price adjustment. In our country, we are not allowed to enjoy that benefit.

What government is doing is that in order to shore up its naira revenue, it has gone to devalue excessively, the naira; $13 devaluation in one day, and then a continuous process of depreciation. “What that does, is that, because we import petroleum products largely, the gains from the falling price of crude which ought to translate to consumers, is prevented by that devaluation; because, by devaluing the cost of the head price, it might even increase. ”We say that that is wrong and the benefits of the falling price of crude, must be translated to Nigerians. Therefore, going forward, we want a situation in which the pump of petrol and other petroleum products should actually be adjusted downwards.”

- See more at: http://www.vanguardngr.com/2014/12/fg-reluctant-reduce-petrol-price/#sthash.W3BOrn8n.dpuf

...hmmmmmm..i regret being a Nigerian....

Things are getting worse in this country.... we need change.

I am dazed. so na like this we go dey dey?

God help us, na ur hand we dey....

anonimi:
What was the price of Sim cards, call rates, sms rates, mobile handsets in 2001?
How much are they now

Why do we like to RIDICULE ourselves so much?

Meanwhile I hope you are not one of those who call our president clueless given what you just exhibited here

so Jonathan dropped the rates? The rates have been dropping before he became known in Bayelsa!

Adesiji77:
Agitators who expect the administration of President Goodluck Ebele Jonathan to reduce the prices of petroleum products may be disappointed, as investigations have shown that it is not currently being considered.It was learnt that the considerations of the federal government is that what should have been a direct benefit to consumers as a fall-out from the crash in the prices of crude oil in the international market has been lost to the devaluation of the Naira.

The Central Bank recently devalued the Naira from a long-standing N155==$ 1 to N168==$1, owing to pressures on the currency at the foreign Exchange market.The Petroleum Products Pricing regulatory Agency, PPPRA, claimed in its Thursday, December 11, 2014, that it was buying products from foreign refineries at the rate of N171.36 ==$1. PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre. When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.

State actors claimed that the federal government now needed much more Naira to buy the products which should have cost consumer more but for the reduction in the cost of crude , as well as, subsidy it pays on the products.Brent prices have fallen to about $ 70 per barrel, with industry experts forecasting further fall to as low as $ 50 per barrel in the months ahead. Products prices across several countries around the globe have been cut by marketers in countries like the United Kingdom where the prices have been deregulated. In that country, ASDA, Tesco, Morrisons and Sainsburry have reduced petrol prices by at least 2 per litre, bringing prices around 112 . 7 per litre.

Malaysia, India, Indonesia and Sri Lanka also officially cut their petroleum products’ prices, some by as much as 6 per cent. The federal government while responding to the development in the international crude oil market has cut 2015 subsidy budget to about N 458.68 billion, down from N 971.14 billion in the current Fiscal Year. It has also reviewed downwards it oil price benchmark twice to avoid being caught napping in the crashing oil prices scenario.

It originally proposed $78 per barrel of oil for the 2015 budget, but later revised to $73 per barrel and lately $65 per barrel. Agitation for the a cut in prices of petroleum products have been mounting with Governor Babatunde Fashola of Lagos State, last week, criticizing the federal government over its reluctance towards reducing the pump price of oil from the current N97 per litre, after a significant decline in crude prices.

The Governor spoke while addressing hundreds of youths at the Lagos State After School Graduation Development Centre, AGDC, IGNITE Employability Project 5, Ikeja. His words, “Now, we should be enjoying cheap fuel if the price of oil has dropped globally. And even as we import the product, a major component has reduced in price. While this has reduced, the pump price of fuel in the country still remains the same. Something is wrong. “If the price increases in the country when the price of oil goes up globally, then it should also reduce when the price of crude oil drops. “I am not an economist but I have some logic and common sense to ask critical questions. For instance, if one buys flour at N10 per kilogram, and the bread is sold at N1 per loaf, if the price of flour drops, the price of the bread should also change”.

The Nigeria Labour Congress, NLC, has also joined the agitation by calling on the federal government to reduce pump prices of petroleum products in line with falling crude prices in the international market as has been done by other countries. General Secretary of NLC, Dr Peter Oso-Eson, told journalists midweek that NLC was worried prices of products have remained static. According to him, ”The area that worries us very seriously is that crude prices are falling. In order countries, what that is immediately translating to, is that the price of petroleum products and pump head is coming down. In the United States, in the last one month, the price of a gallon of petrol, has come down from $3 to $2, in response to this price adjustment. In our country, we are not allowed to enjoy that benefit.

What government is doing is that in order to shore up its naira revenue, it has gone to devalue excessively, the naira; $13 devaluation in one day, and then a continuous process of depreciation. “What that does, is that, because we import petroleum products largely, the gains from the falling price of crude which ought to translate to consumers, is prevented by that devaluation; because, by devaluing the cost of the head price, it might even increase. ”We say that that is wrong and the benefits of the falling price of crude, must be translated to Nigerians. Therefore, going forward, we want a situation in which the pump of petrol and other petroleum products should actually be adjusted downwards.”

- See more at: http://www.vanguardngr.com/2014/12/fg-reluctant-reduce-petrol-price/#sthash.W3BOrn8n.dpuf

Jonathan okonjo and deziani are thieves


Never did they make decisions in the interest of the masses

Anything that encourage Jonathan corruption he will respond quickly but anything that favours masses will not be looked into let alone implemented.

anonimi:
This is NOT so much about any cabal.
No, it is NOT!

It is about our clueless rejection of the subsidy removal & DEREGULATION of the petroleum sector. We would have suffered higher prices initially as with mobile phones & cement but with-

- new investors
- increased supply
- increased COMPETITION

price will start REDUCING after a while.

A clueless fool who does not sacrifice today will be a SLAVE to his neighbour who did, tomorrow.
No short-cut in life really except the one that will cut you short
QED!!!

smart guy! You really earning ur pay. You should know that all you clamour shouldn't have excluded bringing subsidy thieves to book! You can see that this govt is so corrupt and supports it fully! So shut up!

LordCenturion:
PDP achievement since Abdulsalam abubakar hand over

let me mention 18


1. Electricity : in 1999 = 32%..in 2014 = 5% ❌

2. Petroleum price : in 1999 = #18..in 2014 = #95 ❌

3. Naira to dollar : in 1999 = #85..2014 = #181 ❌

4. water : 1999 = 39%..2014 = 1% ❌

5. security : 1999 = 45%..2014 = 14% ❌

6. employment : 1999 = 57%..2014 = 9% ❌

7. government property maintenance such as stadium,national theatre,refineries,schools,Roads etc : 1999 = 24%..2014 = 2% ❌

8. Education : 1999 = 57%..2014 = 88 ✔

9. corruption : 1999 = 47%..2014 = 85 ❌

10. Foreign investors : 1999 = 15%..2014 = 36% ❓

11. Telecommunication system : 1999 = 9%..2014 = 79% ✔

12. crime : 1999 = 13%..2014 = 65% ❌

13. Medical care : 1999 = 27%..2014 = 38% ❓

14. Insurgency : 1999 = 1%..2014 = 71% ❌

15. Embezzlement : 1999 = 32%..2014 =86% ❌

16. Creativity : 1999 = 41%..2014 = 81% ✔

17. Poverty : 1999 = 68%..2014 = 42% ✔

18. New Roads : 1999 = 21%..2014 = 40% ❓

,why dont you mention the population from same 1999 till date?

yehmi01:
The rate at which you people praise this buhari man self, he will just fix all the problem that have been dir for YEARS just over night.

I keep telling people the major problem of the country is not so much about the people in ASO rock. Nigerian are the number one problem of the country.

We are very myopic in our view of things.

We get people to promise heaven and earth without really counting the cost.

This was the same emotional strategy GEJ played back then saying 'I was not born Rich'

Now Nigerians are the one paying for the poverty and his lack of ability to deliver.

Let's face it. IS BUHARI REALLY BETTER Than GEJ.

If you say yes I will say you are a big liar.

And because of the Nigerian people and centiments APC will never put sensible people like fashola and Adams as president.

But instead we are given two clueless people in PDP and APC to vote for the one whom we think is a little more clueless than the other since both are cluless any ways and have a citizens who will not ask the right questions and analyze the matter from all sizes.

February will come naa.

We we see how many things the so called buhari will do.

A dump person in PDP does not make Him smart in APC vise versal. Period.

Its all politics. That's how democracy works. The fear of losing power viz the determination to attain it is the engine of democratic progress not necessarily the quality of the candidates. In most cases they average out across parties. Right now the two important assets power and reputation are balanced inversely between both parties. The PDP has maximum power and minimum reputation, the APC has minimum power and maximum reputation. If Nigerians decide for a reversal come 2015 the PDP will be relieved because it can rebuild its reputation in opposition while the APC will gradually lose theirs. But power will more than compensate for the inevitable loss of face..

anonimi:
This is NOT so much about any cabal.
No, it is NOT!

It is about our clueless rejection of the subsidy removal & DEREGULATION of the petroleum sector. We would have suffered higher prices initially as with mobile phones & cement but with-

- new investors
- increased supply
- increased COMPETITION

price will start REDUCING after a while.

A clueless fool who does not sacrifice today will be a SLAVE to his neighbour who did, tomorrow.
No short-cut in life really except the one that will cut you short
QED!!!

Kindly tell us why the price of diesel has remained as high as ever? It has been deregulated fully for several years now.

LordCenturion:
PDP achievement since Abdulsalam abubakar hand over

let me mention 18


1. Electricity : in 1999 = 32%..in 2014 = 5% ❌

2. Petroleum price : in 1999 = #18..in 2014 = #95 ❌

3. Naira to dollar : in 1999 = #85..2014 = #181 ❌

4. water : 1999 = 39%..2014 = 1% ❌

5. security : 1999 = 45%..2014 = 14% ❌

6. employment : 1999 = 57%..2014 = 9% ❌

7. government property maintenance such as stadium,national theatre,refineries,schools,Roads etc : 1999 = 24%..2014 = 2% ❌

8. Education : 1999 = 57%..2014 = 88 ✔

9. corruption : 1999 = 47%..2014 = 85 ❌

10. Foreign investors : 1999 = 15%..2014 = 36% ❓

11. Telecommunication system : 1999 = 9%..2014 = 79% ✔

12. crime : 1999 = 13%..2014 = 65% ❌

13. Medical care : 1999 = 27%..2014 = 38% ❓

14. Insurgency : 1999 = 1%..2014 = 71% ❌

15. Embezzlement : 1999 = 32%..2014 =86% ❌

16. Creativity : 1999 = 41%..2014 = 81% ✔

17. Poverty : 1999 = 68%..2014 = 42% ✔

18. New Roads : 1999 = 21%..2014 = 40% ❓

nyc and genuine analysis

siraj1402:
Moderator,why are u favoring some people to others?This same topic was first posted by me on December 13 at 10:52am while the op posted the same thing at 7:53pm.Pls correct this anomality.https://www.nairaland.com/2042476/why-fg-reluctant-reduce-petrol

This is Nigeria... Remember!

anonimi:
What was the price of Sim cards, call rates, sms rates, mobile handsets in 2001?
How much are they now

Why do we like to RIDICULE ourselves so much?

Meanwhile I hope you are not one of those who call our president clueless given what you just exhibited here

How clueless can u get?. Where ar d huge funds realised frm d sale of gsm licences?. They looted it & did not even deem it fit to plough some of it back nto improving infrastructure dat will help d country & d gsm companies. because of poor infrastructure & inadequate power supply gsm prices in nigeria is still among d highest in d world. Is it power dat they provided or ar they d ones providing d air dat is being used by gsm?. Govt only reaped & is still reaping frm huge profits being made by gsm companies frm hapless nigerian masses.

It's not just about the govt;it's about the people. Even when a complete turn around maintenance is done on them to make them produce at optimal capacities,it's still Nigerians who would collect bribe to sabotage the whole thing and next thing you'd hear again is that,the refineries are down. The reason is this: if our refineries work,the amount of fuel imported would be reduced and the amount of subsidy being paid would be drastically reduced. Of course,most of the importers wouldn't want such. So the best way for them to remain in business,is to keep sabotaging govt's efforts,while they retain the amount of petroleum products they import. It's simply greed and selfishness on the part of a few,that is ruining the nation. The money is so much that,it's hard for those in the system to reject the hefty bribes.

enkay4love:
u took the words right out of my mouth. I wish the next government would fix this refinery menace as its foremost priority.

siraj1402:
Moderator,why are u favoring some people to others?This same topic was first posted by me on December 13 at 10:52am while the op posted the same thing at 7:53pm.Pls correct this anomality.https://www.nairaland.com/2042476/why-fg-reluctant-reduce-petrol

Leave them jare .Biased set of human beings....I remember posting a topic on APC asking its presidential aspirants to sign an undertaking. It wasn't brought to FP. But almost 24 hours later,somebody else posted and immediately it made front page.I decided to hush after all,nairaland no be my property.You guys should continue o.Rubbish!!!

When GMB tells me that, I will believe more than the clueless who feeds with N9bn monthly.

vanunu:
My brother, we have a lot of foolish people in this country, when gej asked for total deregulation, nigerians ignorantly called him clueless.

erico2k2:
exactly my thoughts, no one sees the good only the bad

Don't get it twisted. Where ar d huge funds realised frm d sale of gsm licences?. They looted it & did not even deem it fit to plough some of it back nto improving infrastructure dat will help d country & d gsm companies. because of poor infrastructure & inadequate power supply gsm prices in nigeria is still among d highest in d world. Is it power dat they provided or ar they d ones providing d air dat is being used by gsm?. Govt only reaped & is still reaping frm huge profits being made by gsm companies frm hapless nigerian masses without sowing anything.

django1:
Kindly tell us why the price of diesel has remained as high as ever? It has been deregulated fully for several years now.

Deregulation comes with production. Production drives down cost. No one will build a refinery to produce diesel alone. That is what government has been saying for years. You cannot deregulate one product and expect a proper response. Like in telecomms. You cannot sell voice and keep data. It doesn't work. When diesel was deregulated it was hoped PMS and other products will follow shortly but Nigerians resisted now we are complaining. For what. Just delayed having private refineries for years to come. Just kicking the can down the road.

Reference:
[s]Deregulation comes with production. Production drives down cost. No one will build a refinery to produce diesel alone. That is what government has been saying for years. You cannot deregulate one product and expect a proper response. Like in telecomms. You cannot sell voice and keep data. It doesn't work. When diesel was deregulated it was hoped PMS and other products will follow shortly but Nigerians resisted now we are complaining. For what. Just delayed having private refineries for years to come. Just kicking the can down the road[/s].

Rubbish lies! How much does it cost to build a refinery? 10billion dollars? Or perhaps 20? You are deceiving yourselves.

Malaysia, India, Indonesia and Sri Lanka also officially cut their petroleum products’ prices, some by as much as 6 per cent

Isn't a pity that we all rush to give example of countries where the fuel price has fallen, yet we do not want to know by how much the price fall and what brought about the reduction in the price of fuel. All of the four countries above, Malaysia, India, and Sri Lanka, all have one thing in common... REMOVAL OF FUEL SUBSIDY!

Indonesia removed the fuel subsidy which brought about increase in the fuel price by more than 30%.. i wonder where the writer of this article found the reduction of fuel price in indonesia

All countries of the world are doing away with fuel subsidy, allowing the oil price to float and be determined by market forces. When the FG tried that, it was the same opposition and the NLC who stood against it.

Before we even start talking about reduction in the price of fuel, have we asked ourselves, if fuel price is allowed to be determined by market forces, will be price be N97?

In Malaysia where the price has "fallen" since the removal of fuel subsidy, a liter of fuel there is still more expensive than Nigeria. The cheapest you can get is RON 95 which sells at RM2.23 approxematly N114

In India, the price is about Rs 64 which is about N184.

There are three things the FG can do about the fall of oil price.

1. Either they remove the fuel subsidy, allow the price to determined by market force (The final price of fuel even at the low price of oil now will be more than N97 per litre)

2. Reduce the price of oil by keeping the same amount of subsidy as budgeted (Can we really afford this when oil price, the base of our economy is falling? why not save from the subsidy and invest in other sectors?)

3. Keep the price as it is, use the savings from the subsidy to finance the deficit budget created by the reduction in price of global crude oil. This is what this government chose to do and by far the best option. What this means is that we are saving more than N500 billions from fuel subsidy as a result of fall in oil price

Ok. What has been done with the N32 increase in the pump price?

Reference:
Deregulation comes with production. Production drives down cost. No one will build a refinery to produce diesel alone. That is what government has been saying for years. You cannot deregulate one product and expect a proper response. Like in telecomms. You cannot sell voice and keep data. It doesn't work. When diesel was deregulated it was hoped PMS and other products will follow shortly but Nigerians resisted now we are complaining. For what. Just delayed having private refineries for years to come. Just kicking the can down the road.

The FG has created myriads of excuse platform to cover dia ineptitude and incompetence and fraudulent attitude , from lack of home refineries to devaluation of currency @ expense of its citizens. I still maintain subsidy is a big scam

I understand that part well but have decided no to go over it again. Some people would soon start arguing baselessly about subsidy removal. But on the other hand,there are corrupt people who do not want it to work so they can continue and maintain the status quo of importing petroleum products and claiming subsidy payment. If the refineries work,subsidy payments would be drastically reduced. Unfortunately,you and I know that this is not a good piece of new for importers of petroleum products,as it will generally affect their revenue and profits. They'd do everything possible to maintain the status quo and because a lot of Nigerians are corrupt,they'd end up having their way.

anonimi:
This is NOT so much about any cabal.
No, it is NOT!

It is about our clueless rejection of the subsidy removal & DEREGULATION of the petroleum sector. We would have suffered higher prices initially as with mobile phones & cement but with-

- new investors
- increased supply
- increased COMPETITION

price will start REDUCING after a while.

A clueless fool who does not sacrifice today will be a SLAVE to his neighbour who did, tomorrow.
No short-cut in life really except the one that will cut you short
QED!!!

Adesiji77:
Agitators who expect the administration of President Goodluck Ebele Jonathan to reduce the prices of petroleum products may be disappointed, as investigations have shown that it is not currently being considered.It was learnt that the considerations of the federal government is that what should have been a direct benefit to consumers as a fall-out from the crash in the prices of crude oil in the international market has been lost to the devaluation of the Naira.

The Central Bank recently devalued the Naira from a long-standing N155==$ 1 to N168==$1, owing to pressures on the currency at the foreign Exchange market.The Petroleum Products Pricing regulatory Agency, PPPRA, claimed in its Thursday, December 11, 2014, that it was buying products from foreign refineries at the rate of N171.36 ==$1. PPPRA’s Pricing Template indicated that as at Thursday, its Offshore Nigeria Price stood N78.67 per litre and a Landing cost of N88.90 per litre. When all distribution margins and other costs are added to the landing cost, Expected Open Market Price got to N104.39 per litre, thus still leaving the federal government with a subsidy of N7.39 kobo.

State actors claimed that the federal government now needed much more Naira to buy the products which should have cost consumer more but for the reduction in the cost of crude , as well as, subsidy it pays on the products.Brent prices have fallen to about $ 70 per barrel, with industry experts forecasting further fall to as low as $ 50 per barrel in the months ahead. Products prices across several countries around the globe have been cut by marketers in countries like the United Kingdom where the prices have been deregulated. In that country, ASDA, Tesco, Morrisons and Sainsburry have reduced petrol prices by at least 2 per litre, bringing prices around 112 . 7 per litre.

Malaysia, India, Indonesia and Sri Lanka also officially cut their petroleum products’ prices, some by as much as 6 per cent. The federal government while responding to the development in the international crude oil market has cut 2015 subsidy budget to about N 458.68 billion, down from N 971.14 billion in the current Fiscal Year. It has also reviewed downwards it oil price benchmark twice to avoid being caught napping in the crashing oil prices scenario.

It originally proposed $78 per barrel of oil for the 2015 budget, but later revised to $73 per barrel and lately $65 per barrel. Agitation for the a cut in prices of petroleum products have been mounting with Governor Babatunde Fashola of Lagos State, last week, criticizing the federal government over its reluctance towards reducing the pump price of oil from the current N97 per litre, after a significant decline in crude prices.

The Governor spoke while addressing hundreds of youths at the Lagos State After School Graduation Development Centre, AGDC, IGNITE Employability Project 5, Ikeja. His words, “Now, we should be enjoying cheap fuel if the price of oil has dropped globally. And even as we import the product, a major component has reduced in price. While this has reduced, the pump price of fuel in the country still remains the same. Something is wrong. “If the price increases in the country when the price of oil goes up globally, then it should also reduce when the price of crude oil drops. “I am not an economist but I have some logic and common sense to ask critical questions. For instance, if one buys flour at N10 per kilogram, and the bread is sold at N1 per loaf, if the price of flour drops, the price of the bread should also change”.

The Nigeria Labour Congress, NLC, has also joined the agitation by calling on the federal government to reduce pump prices of petroleum products in line with falling crude prices in the international market as has been done by other countries. General Secretary of NLC, Dr Peter Oso-Eson, told journalists midweek that NLC was worried prices of products have remained static. According to him, ”The area that worries us very seriously is that crude prices are falling. In order countries, what that is immediately translating to, is that the price of petroleum products and pump head is coming down. In the United States, in the last one month, the price of a gallon of petrol, has come down from $3 to $2, in response to this price adjustment. In our country, we are not allowed to enjoy that benefit.

What government is doing is that in order to shore up its naira revenue, it has gone to devalue excessively, the naira; $13 devaluation in one day, and then a continuous process of depreciation. “What that does, is that, because we import petroleum products largely, the gains from the falling price of crude which ought to translate to consumers, is prevented by that devaluation; because, by devaluing the cost of the head price, it might even increase. ”We say that that is wrong and the benefits of the falling price of crude, must be translated to Nigerians. Therefore, going forward, we want a situation in which the pump of petrol and other petroleum products should actually be adjusted downwards.”

- See more at: http://www.vanguardngr.com/2014/12/fg-reluctant-reduce-petrol-price/#sthash.W3BOrn8n.dpuf

Right about nw theres notin we can not survive

vanunu:
U don't know anything about economics.

Can you please educate us? You are NOI' brother right?

Jonathan...... @last u fall my hand...... No voting again

Reference:
Deregulation comes with production. Production drives down cost. No one will build a refinery to produce diesel alone. That is what government has been saying for years. You cannot deregulate one product and expect a proper response. Like in telecomms. You cannot sell voice and keep data. It doesn't work. When diesel was deregulated it was hoped PMS and other products will follow shortly but Nigerians resisted now we are complaining. For what. Just delayed having private refineries for years to come. Just kicking the can down the road.

All sorts of rants just to cover corruption & ineptitude of 15+ yrs of PDP misrule. What do u mean "like in gsm u can not sell voice & keep data". 4 many years gsm companies sold voice without data. d problem people make is to see gsm as a govt achievement. Tell me one country dat doesn't hav gsm. Gsm companies come begging, ready to pay huge sums just to purchase operating licences. In d case of Nigeria's PDP, proceeds frm d sale of dis licences were looted rather than ploughed back to fund critical infrastructure dat will help d country & gsm industry.
d deceit is over. Nigerians ar wiser now. d clueless one is on d homestrech of his inept presidency.

MAYOWAAK:
There are three aspects of the “subsidy fraud”. One,a fuel importer could bring in 2000 metric tonnes and claim subsidy for 8,000 metric tonnes. “The mark-up will be shared down the line,” “Even if you are a pastor, you will fall for it. The money is just too much. Imagine the billions of naira available to be shared on a regular basis. So the regulatory system is compromised and weakened.” Two, NNPC always imports more than it has storage facility for. “So the product is stored at private tank farms. If NNPC stores 30 million litres with your farm, you don’t have to account for 10 million litres. There is a process by which you can account for only 5 million litres as long as you know how to share the proceeds of the remaining 5 million litres with those who matter.”
There are many things that are unheard of all over the world that you will find in Nigeria. What works perfectly in Saudi Arabia and Norway will not work here. Ask yourself: how come our refineries have not been working for ages? Name another country that has four refineries that hardly work. Do you know how many emergency billionaires we have produced through turn-around maintenance contracts in the last 20 years?”
The third aspect of the fraud: “When they tell you the landing cost of petrol is N150 and the pump price is N97, it means the importer will get subsidy payment of about N57 per litre. Now, that is another fraud. There are different grades of PMS (petrol). They do not go for the same price. In the UK, for instance, the price of leaded petrol is different from that of unleaded. In Nigeria, we don’t distinguish between grades. We pay the same price. So the landing cost of the lowest grade may be N100, but the importer still gets a subsidy payment of about N57 instead of N3 per litre. Do the math. Multiply that by millions of litres everyday and you will understand the fraud. Remember too that the importers get paid for demurrage even if they don’t incur it. I can go on and on.”
To cap it all,I can tell you authoritatively that our daily PMS consumption is not as high as officially quoted. It is the biggest fraud ever. We keep calculating subsidy on the assumption that we consume 40 million litres a day. Remember to always discount the official figures. It is good for your health.”

In other words deregulation right?