₦airaland Forum

tete7000:
One thing you don't seem to see is that subsidy itself is a function of the crude price. Whatever you have is at a time t. It can change from time t to time t+1, depending on whether there is increase or decrease in the price of crude. If you remember there was actually a time it was reduced from N97 to N87 because crude price crashed in the international market and we were no longer incurring subsidy at that time. The role APC played in ensuring the reduction and appropriateness or inappropriateness of that reduction in a regulated market is actually an argument for another day.
Back to my argument, if there is direct variation between price of crude and the price of pms, don't you think that should the price hits like $120 per barrel of crude that even this govt can incur over N1tr on subsidy as we will be paying double of what we are paying now as subsidy? The cost of subsidy we have now is just at like crude price averaging $60 or even less per barrel. This will change depending on the dynamics of the crude market. On that note until this govt finds itself in that shoe we really might be unable to judge whether GEJ was totally wrong with that figure around the time when crude was selling at over $100 per barrel.
It is this same issue that makes it difficult to precisely and accurately capture subsidy in the budget as the cost will always fluctuate depending on what happens in the international crude market.

Firefire:
May be you don’t know, I am one of those clamoring for subsidy removal because it has overstayed its welcomes.

If we can stop subsidizing US Dollars, by allowing the market forces to determine the exchange rate which in turn is now increasing our foreign reserve, I see no reason why we should not remove the fraudulent fuel subsidy.

What is the gain of the purported subsidy when Nigerians could still not get the product at the subsidized rate of N87/L?

omenka:
Okay. Pardon me I didn't read the article. But from the tone of the op and knowing his political leanings, I can rightly guess the figure represents an increase from what it used to be.

A little math here wouldn't hurt I suppose.

If we are spending approximately N1.6b daily, it means we would spend N584billion by the end of the year.

Now, since this represents an upsurge, it means we must have been paying less in the past, yet Jonathan spent over N2.0trillion on the same item in 1year!!

....And they call him a hero.

That dude is a freaking Ali Baba!! We know who the other 40 ##ieves are.

atlwireles:
The OP you replied, tried to explain in two or three comments above, yet some of you pretend not to understand. In 2010/2011 crude oil was almost $100 per barrel and the pump price was N65. Go and recalculate the cost of subsidy on PMS using these variables.

atlwireles:
The OP you replied, tried to explain in two or three comments above, yet some of you pretend not to understand. In 2010/2011 crude oil was almost $100 per barrel and the pump price was N65. Go and recalculate the cost of subsidy on PMS using these variables.

Firefire:
Oga philips70,

suffily stuffily abi? how about the daily loss of 1 Billion Naira additional payment by Nigerians to fuel marketers despite the government subsidy?

If Buhari will not remove fuel subsidy at the moment, at least he can enforce the official subsidized pump price of N87/L?

https://www.nairaland.com/2463504/petrol-subsidy-hits-n1.69bn-daily#36064792

coolbis:
i must say I really apppreciate your maturity in dealing with issues devoid of insults and lies as its generally witness on most of our social media these days. However there is no way a liter of pms will be sold for double the present price if we actually follow the simple law of demand and supply. The business of oil and gas is largely dependent on international politics , which simply means a possible lift of sanctions imposed on iran about 4 years ago will increase the supply of oil in the global market, couple with the general resolve of most world power that are doing everything possible to reduce the use of hydrcarbon derivates as source of power due to global warming. The demand may not witness any appreciable increase, and in the face of excess supply, the prices may not increase. However our grouse against the govt of Dr GEJ was that, @ the time the crude was being sold for over a $100, we expected that part of the money realised would have been used to fix our refineries which have capacity to supply over 60percent of our daily consumption. That would have reduced the level of imports and negate the back interest and forex differentials. The oil swap always would have been a very good strategy of subsidy.

Firefire:
philips70,

Any feedback ?

fitzmayowa:
The confusion no be here, it seems they knew the truth but they rather choose to play on the emotions of nigerians to get elected and they succeeded...SMH

coolbis:
i .

omenka:
Okay. Pardon me I didn't read the article. But from the tone of the op and knowing his political leanings, I can rightly guess the figure represents an increase from what it used to be.

A little math here wouldn't hurt I suppose.

If we are spending approximately N1.6b daily, it means we would spend N584billion by the end of the year.

Now, since this represents an upsurge, it means we must have been paying less in the past, yet Jonathan spent over N2.0trillion on the same item in 1year!!

....And they call him a hero.

That dude is a freaking Ali Baba!! We know who the other 40 ##ieves are.

francizy:


I do not know what subsidy means - Buhari

Who is subsidizing who - Buhari

Subsidy will be removed - Buhari

We will not remove subsidy - Buhari



What a confused government! SmH!


Modified:

Bros firefire, abeg correct that calculation.. 51 x 920 = NGN 46,920,000,000 = NGN 46.92Billion loss excluding subsidy (you have to either write it like this or you approximate to NGN 47Billion because the NGN 920Million you omitted is almost NGN 1Billion)

Thank you..

francizy:


I do not know what subsidy means - Buhari

Who is subsidizing who - Buhari

Subsidy will be removed - Buhari

We will not remove subsidy - Buhari



What a confused government! SmH!


Modified:

Bros firefire, abeg correct that calculation.. 51 x 920 = NGN 46,920,000,000 = NGN 46.92Billion loss excluding subsidy (you have to either write it like this or you approximate to NGN 47Billion because the NGN 920Million you omitted is almost NGN 1Billion)

Thank you..

coolbis:
i must say I really apppreciate your maturity in dealing with issues devoid of insults and lies as its generally witness on most of our social media these days. However there is no way a liter of pms will be sold for double the present price if we actually follow the simple law of demand and supply. The business of oil and gas is largely dependent on international politics , which simply means a possible lift of sanctions imposed on iran about 4 years ago will increase the supply of oil in the global market, couple with the general resolve of most world power that are doing everything possible to reduce the use of hydrcarbon derivates as source of power due to global warming. The demand may not witness any appreciable increase, and in the face of excess supply, the prices may not increase. However our grouse against the govt of Dr GEJ was that, @ the time the crude was being sold for over a $100, we expected that part of the money realised would have been used to fix our refineries which have capacity to supply over 60percent of our daily consumption. That would have reduced the level of imports and negate the back interest and forex differentials. The oil swap always would have been a very good strategy of subsidy.