₦airaland Forum

captain247:
Fuel subsidy removal is of the advantage when global oil price goes down like its happening now but will be of disadvantage when global oil price goes up.
Say for example, If for now you're buying at #86 per liter with no subsidy and global oil price is $35 by the time global oil price goes up to $60 you'll have to buy at say #120 or more.

abduljabbar4:
I can bet with my life that he makes more sense than olisah metuh.

TonyeBarcanista:
Every year government pay hundreds of billions to oil marketers to subsidise the pump price of premium motor spirit(petrol/fuel) so that you and I can be buying at a price lower than the open market price. What these marketers does is to fleece you and I by hoarding the product and force us to buy at much higher rate than even the open market price while still collecting billions on subsidy. What the government want to do is very simple; since open market price is estimated at N89-N90 per litre, they will no longer subsidise it(it's affordable). That means marketers will be competing among themselves to woo customers and we will experience less sabotage considering that nobody will want to lose their share in the market.

How will you benefit? Simple...
1. You will most likely never experience a situation of buying fuel at N3-N5 above the open market price.

2. The hundreds of billions giving to marketers annually will be channelled to productive ventures.

3. The issue of fuel hoarding may hardly arise.


Cc: Airforce1

agabusta:
You are a liar and must be very dull.

Which filling station in Ikeja did u buy fuel at 95naira/litre??

There is fuel everywhere in Lagos without any queue at the recommended pump price. I was still in Ikeja today and I took interest in looking at a lot of filling stations just because I plan to buy fuel after service.

After service I covered a significant part of Lagos as the roads were very free and I can boldy tell u that there is fuel in LAGOS not even only Ikeja at govt modulated prices without queues.

This is a new year, you better drop the spirit of bad belle and lying.

AZeD1:
It's illegal to use Olisa Metuh and "sense" in the same sentence.

TonyeBarcanista:
Every year government pay hundreds of billions to oil marketers to subsidise the pump price of premium motor spirit(petrol/fuel) so that you and I can be buying at a price lower than the open market price. What these marketers does is to fleece you and I by hoarding the product and force us to buy at much higher rate than even the open market price while still collecting billions on subsidy. What the government want to do is very simple; since open market price is estimated at N89-N90 per litre, they will no longer subsidise it(it's affordable). That means marketers will be competing among themselves to woo customers and we will experience less sabotage considering that nobody will want to lose their share in the market.

How will you benefit? Simple...
1. You will most likely never experience a situation of buying fuel at N3-N5 above the open market price.

2. The hundreds of billions giving to marketers annually will be channelled to productive ventures.

3. The issue of fuel hoarding may hardly arise.


Cc: Airforce1

agabusta:
You lots cannot blackmail the APC and the intelligent people that protested against the irrational removal of subsidy in 2011 by your ignorance (feigned or real) and attempts at prevarication.

Maybe u need to go and have a look at the speeches and arguments of subsidy removal of 2011 again, if indeed your mind is open to unbias.

No one entirely tagged subsidy removal as evil. Infact a lot of APC governors supported subsidy removal.

The CBN governor then, Sanusi Lamido Sanusi supported subsidy removal. A lot of hate-filled souls prefer to lambast that smart man when it is convenient for them and it suits their bigoted position. But prefer to abuse him and call him a bigot if he is on an opposing view to their stance. What an undemocratic animalistic behaviour.

The main opposition to subsidy then was premised on the fact that subsidy rose from about 250,300,350 billion in 2008, 2009 & 2010 respectively to about 1.5trillion in 2011 without any rational explanation from the govt.

The govt itself agreed that the subsidy regime was entrenched in so much corruption, yet no one was brought to book!

That is the greatest disservice that govt did to the nation. How can govt be duped of billions of naira, yet nothing was done to the thieves who were even around govt circles and flaunting their loot, yet you want the citizenry to pay for such ineptitude.

It doesn't happen anywhere!

We cannot be made to pay for the ineptitude and incapacity of the govt.

That singular action of govt at that time, which resulted in the prices of petrol spiralling from 65naira/litre to above 145 naira/litre was very insensitive and wicked.

And I can assure you that anywhere democracy is being practised in the world, that action of the GEJ administration will be resisted by the people. It is so simple. I don't why a lot of you is taking it as personal thing against Jona.

Corruption was on the highest levels, refineries were comatose, govt did not properly sensitize the citizenry before arbitrarily making pump price more than double it's price.

Infact, it was like a coup against the people as this was the new year gift the govt meted out to them, and u think it will not be resisted by civil groups and labour unions??

Sincerely I can recollect that I felt that sharp increase badly. I work in VI and live around Berger. I usually use one full tank to go to work per week. It was so difficult to adjust to the new price. I was formerly filling my tank with about 4k, after the arbitrary increase, it climbed to about 9k. Transportation cost hit the rocks in Lag.

Transportation is expensive in Lag, and waking up to see it has been more than doubled will definitely cause a social upheaval. It doesn't take a genius to predict this.

Increase in fuel price in Nigeria always lead to a corresponding increase in price of a lot of commodities. Which means prices of everything at that time also more than doubled while the citizens were still on same income.

How won't people protest?? Moreso when they were hearing stories of people defrauding the govt of billions of naira and no one was punished.

Now let me tell u the things that has changed.

1. The current subsidy removal did not lead to an unreasonable increase in the price of a litre of petrol.

2. The present govt has shown a readiness to fight corruption by its words and actions. And there was no scadal about people defrauding the govt of billions before the subsidy removal.

3. There is improved sensitization of the people before the subsidy removal. People are now more aware of the advantages of removing subsidy coupled with the fact that d removal will not cause a marked increase in price.

4. Reasonable & intelligent people have seen a genuine attempt by the govt to reactivate the refineries and bring them back to operation. While keeping corruption at the barest minimum thru the operation of the TSA.

5. Reasonable and intelligent people have seen that the govt of the day is trying all it can to block leakages, and are not showing hopelessness in the midst of massive corruption, and are therefore willing to support them by themselves taking on a little liability.

6. The govt of the day took the decision in a strategic way, while hoping before prices pick up in the international market, they would have been able to resuscitate the refineries and up local production.

erico2k2:
Seriously that does not show how it helps the man on the street.these billions you say get into the hands of importers and corrupt govt officials will definitely find its way of disappearing through another scheme.
I'm shocked nobody knows the benefits of subsidy removals amongst young people today however I know why cos there are NONE. No benefits for the ordinary man on the street..What govt should do is look for ways to close the loop holes used by these importers to scam Nigerians.for example what prevents the Customs from doing %100 physical inspection of vessels that bring petrol. Why not set up a task force mandated to check weigh bills at point of lifting and at point of discharge? .If he removes subsidy we will never see petrol in Nigeria.if we did it will be minimum of N 500 per litre.reason being it cost up to N150 or more to refine 1 litre of petrol. Now when you add logistics and other overheads plus taxes what do you think the final cost would be.Once again this govt is a scam telling us it removed subsidy with no working refinaries is a big scam.

TonyeBarcanista:
Every year government pay hundreds of billions to oil marketers to subsidise the pump price of premium motor spirit(petrol/fuel) so that you and I can be buying at a price lower than the open market price. What these marketers does is to fleece you and I by hoarding the product and force us to buy at much higher rate than even the open market price while still collecting billions on subsidy. What the government want to do is very simple; since open market price is estimated at N89-N90 per litre, they will no longer subsidise it(it's affordable). That means marketers will be competing among themselves to woo customers and we will experience less sabotage considering that nobody will want to lose their share in the market.

How will you benefit? Simple...
1. You will most likely never experience a situation of buying fuel at N3-N5 above the open market price.

2. The hundreds of billions giving to marketers annually will be channelled to productive ventures.

3. The issue of fuel hoarding may hardly arise.


Cc: Airforce1

TonyeBarcanista:
Every year government pay hundreds of billions to oil marketers to subsidise the pump price of premium motor spirit(petrol/fuel) so that you and I can be buying at a price lower than the open market price. What these marketers does is to fleece you and I by hoarding the product and force us to buy at much higher rate than even the open market price while still collecting billions on subsidy. What the government want to do is very simple; since open market price is estimated at N89-N90 per litre, they will no longer subsidise it(it's affordable). That means marketers will be competing among themselves to woo customers and we will experience less sabotage considering that nobody will want to lose their share in the market.

How will you benefit? Simple...
1. You will most likely never experience a situation of buying fuel at N3-N5 above the open market price.

2. The hundreds of billions giving to marketers annually will be channelled to productive ventures.

3. The issue of fuel hoarding may hardly arise.


Cc: Airforce1

tinktanker:
pls dont teach us nonsense. Crude oil was $60 but fuel was reduced to N87 frm N97.now crude oil is below $40 and fuel reduced to N86. does that sound proportionate to u?

captain247:
Fuel subsidy removal is of the advantage when global oil price goes down like its happening now but will be of disadvantage when global oil price goes up.
Say for example, If for now you're buying at #86 per liter with no subsidy and global oil price is $35 by the time global oil price goes up to $60 you'll have to buy at say #120 or more.

TonyeBarcanista:
Every year government pay hundreds of billions to oil marketers to subsidise the pump price of premium motor spirit(petrol/fuel) so that you and I can be buying at a price lower than the open market price. What these marketers does is to fleece you and I by hoarding the product and force us to buy at much higher rate than even the open market price while still collecting billions on subsidy. What the government want to do is very simple; since open market price is estimated at N89-N90 per litre, they will no longer subsidise it(it's affordable). That means marketers will be competing among themselves to woo customers and we will experience less sabotage considering that nobody will want to lose their share in the market.

How will you benefit? Simple...
1. You will most likely never experience a situation of buying fuel at N3-N5 above the open market price.

2. The hundreds of billions giving to market ears annually will be channelled to productive ventures.

3. The issue of fuel hoarding may hardly arise.


Cc: Airforce1

agabusta:
You lots cannot blackmail the APC and the intelligent people that protested against the irrational removal of subsidy in 2011 by your ignorance (feigned or real) and attempts at prevarication.

Maybe u need to go and have a look at the speeches and arguments of subsidy removal of 2011 again, if indeed your mind is open to unbias.

No one entirely tagged subsidy removal as evil. Infact a lot of APC governors supported subsidy removal.

The CBN governor then, Sanusi Lamido Sanusi supported subsidy removal. A lot of hate-filled souls prefer to lambast that smart man when it is convenient for them and it suits their bigoted position. But prefer to abuse him and call him a bigot if he is on an opposing view to their stance. What an undemocratic animalistic behaviour.

The main opposition to subsidy then was premised on the fact that subsidy rose from about 250,300,350 billion in 2008, 2009 & 2010 respectively to about 1.5trillion in 2011 without any rational explanation from the govt.

The govt itself agreed that the subsidy regime was entrenched in so much corruption, yet no one was brought to book!

That is the greatest disservice that govt did to the nation. How can govt be duped of billions of naira, yet nothing was done to the thieves who were even around govt circles and flaunting their loot, yet you want the citizenry to pay for such ineptitude.

It doesn't happen anywhere!

We cannot be made to pay for the ineptitude and incapacity of the govt.

That singular action of govt at that time, which resulted in the prices of petrol spiralling from 65naira/litre to above 145 naira/litre was very insensitive and wicked.

And I can assure you that anywhere democracy is being practised in the world, that action of the GEJ administration will be resisted by the people. It is so simple. I don't why a lot of you is taking it as personal thing against Jona.

Corruption was on the highest levels, refineries were comatose, govt did not properly sensitize the citizenry before arbitrarily making pump price more than double it's price.

Infact, it was like a coup against the people as this was the new year gift the govt meted out to them, and u think it will not be resisted by civil groups and labour unions??

Sincerely I can recollect that I felt that sharp increase badly. I work in VI and live around Berger. I usually use one full tank to go to work per week. It was so difficult to adjust to the new price. I was formerly filling my tank with about 4k, after the arbitrary increase, it climbed to about 9k. Transportation cost hit the rocks in Lag.

Transportation is expensive in Lag, and waking up to see it has been more than doubled will definitely cause a social upheaval. It doesn't take a genius to predict this.

Increase in fuel price in Nigeria always lead to a corresponding increase in price of a lot of commodities. Which means prices of everything at that time also more than doubled while the citizens were still on same income.

How won't people protest?? Moreso when they were hearing stories of people defrauding the govt of billions of naira and no one was punished.

Now let me tell u the things that has changed.

1. The current subsidy removal did not lead to an unreasonable increase in the price of a litre of petrol.

2. The present govt has shown a readiness to fight corruption by its words and actions. And there was no scadal about people defrauding the govt of billions before the subsidy removal.

3. There is improved sensitization of the people before the subsidy removal. People are now more aware of the advantages of removing subsidy coupled with the fact that d removal will not cause a marked increase in price.

4. Reasonable & intelligent people have seen a genuine attempt by the govt to reactivate the refineries and bring them back to operation. While keeping corruption at the barest minimum thru the operation of the TSA.

5. Reasonable and intelligent people have seen that the govt of the day is trying all it can to block leakages, and are not showing hopelessness in the midst of massive corruption, and are therefore willing to support them by themselves taking on a little liability.

6. The govt of the day took the decision in a strategic way, while hoping before prices pick up in the international market, they would have been able to resuscitate the refineries and up local production.

SLIDEwaxie:
Tony, in truth, I am beginning to hate u for talking sense nowadays!

Pls, pls, be partial as u used to be so I can always insult u as I used to do!

anonimi:
You seem to have the wrong figures and dates, bro.



www.nairaland.com/attachments/2606895_fuelsubsidygovernorssupport2011b_jpeg5c37e0f0eb35bb083e30b935969cd3c6

I remember when I cam back as finance minister on August 17, 2011, the first thing that met me was this big scandal of the subsidies. By then, more that N1 trillion had already been paid. We went through that whole thing. Since then, we have cleaned up, restructured and streamlined the system, and you see that the amount we have been paying year by year diminished substantially to about N971 billion a year, down from the N2.3 trillion of 2011.

“We brought it from that 2.3 trillion to about N971 trillion that has been in the budget each year. So, we made very substantial restructuring and changes to the whole process that brought the amount down for the nation. But yet we have to deal with this problem and the whole country has seen us trying our best, struggling,” Okonjo-Iweala said.

asuustrike2009:
the main reason why the price of. fuel isn't high or felt is because of fall in oil price. supposing the price of oil increases, you will be buying fuel at N130 or more

agabusta:
You lots cannot blackmail the APC and the intelligent people that protested against the irrational removal of subsidy in 2011 by your ignorance (feigned or real) and attempts at prevarication.

Maybe u need to go and have a look at the speeches and arguments of subsidy removal of 2011 again, if indeed your mind is open to unbias.

No one entirely tagged subsidy removal as evil. Infact a lot of APC governors supported subsidy removal.

The CBN governor then, Sanusi Lamido Sanusi supported subsidy removal. A lot of hate-filled souls prefer to lambast that smart man when it is convenient for them and it suits their bigoted position. But prefer to abuse him and call him a bigot if he is on an opposing view to their stance. What an undemocratic animalistic behaviour.

The main opposition to subsidy then was premised on the fact that subsidy rose from about 250,300,350 billion in 2008, 2009 & 2010 respectively to about 1.5trillion in 2011 without any rational explanation from the govt.

The govt itself agreed that the subsidy regime was entrenched in so much corruption, yet no one was brought to book!

That is the greatest disservice that govt did to the nation. How can govt be duped of billions of naira, yet nothing was done to the thieves who were even around govt circles and flaunting their loot, yet you want the citizenry to pay for such ineptitude.

It doesn't happen anywhere!

We cannot be made to pay for the ineptitude and incapacity of the govt.

That singular action of govt at that time, which resulted in the prices of petrol spiralling from 65naira/litre to above 145 naira/litre was very insensitive and wicked.

And I can assure you that anywhere democracy is being practised in the world, that action of the GEJ administration will be resisted by the people. It is so simple. I don't why a lot of you is taking it as personal thing against Jona.

Corruption was on the highest levels, refineries were comatose, govt did not properly sensitize the citizenry before arbitrarily making pump price more than double it's price.

Infact, it was like a coup against the people as this was the new year gift the govt meted out to them, and u think it will not be resisted by civil groups and labour unions??

Sincerely I can recollect that I felt that sharp increase badly. I work in VI and live around Berger. I usually use one full tank to go to work per week. It was so difficult to adjust to the new price. I was formerly filling my tank with about 4k, after the arbitrary increase, it climbed to about 9k. Transportation cost hit the rocks in Lag.

Transportation is expensive in Lag, and waking up to see it has been more than doubled will definitely cause a social upheaval. It doesn't take a genius to predict this.

Increase in fuel price in Nigeria always lead to a corresponding increase in price of a lot of commodities. Which means prices of everything at that time also more than doubled while the citizens were still on same income.

How won't people protest?? Moreso when they were hearing stories of people defrauding the govt of billions of naira and no one was punished.

Now let me tell u the things that has changed.

1. The current subsidy removal did not lead to an unreasonable increase in the price of a litre of petrol.

2. The present govt has shown a readiness to fight corruption by its words and actions. And there was no scadal about people defrauding the govt of billions before the subsidy removal.

3. There is improved sensitization of the people before the subsidy removal. People are now more aware of the advantages of removing subsidy coupled with the fact that d removal will not cause a marked increase in price.

4. Reasonable & intelligent people have seen a genuine attempt by the govt to reactivate the refineries and bring them back to operation. While keeping corruption at the barest minimum thru the operation of the TSA.

5. Reasonable and intelligent people have seen that the govt of the day is trying all it can to block leakages, and are not showing hopelessness in the midst of massive corruption, and are therefore willing to support them by themselves taking on a little liability.

6. The govt of the day took the decision in a strategic way, while hoping before prices pick up in the international market, they would have been able to resuscitate the refineries and up local production.

asuustrike2009:
the main reason why the price of. fuel isn't high or felt is because of fall in oil price. supposing the price of oil increases, you will be buying fuel at N130 or more

Bollinger:
There are no disadvantages to the removal. The question you need to ask is how do countries like germany, who don't have oil happen to never have fuel scarcity and seem to be able to afford it even with the high rate they pay? And we are talking about a country that has plenty of it but can't seem to refine or make it available for it's citizens. How does that not defy logic.

TonyeBarcanista:
Every year government pay hundreds of billions to oil marketers to subsidise the pump price of premium motor spirit(petrol/fuel) so that you and I can be buying at a price lower than the open market price. What these marketers does is to fleece you and I by hoarding the product and force us to buy at much higher rate than even the open market price while still collecting billions on subsidy. What the government want to do is very simple; since open market price is estimated at N89-N90 per litre, they will no longer subsidise it(it's affordable). That means marketers will be competing among themselves to woo customers and we will experience less sabotage considering that nobody will want to lose their share in the market.

How will you benefit? Simple...
1. You will most likely never experience a situation of buying fuel at N3-N5 above the open market price.

2. The hundreds of billions giving to marketers annually will be channelled to productive ventures.

3. The issue of fuel hoarding may hardly arise.


Cc: Airforce1

agabusta:
That is possible. That is what my reason 6 talks about. The govt was strategic in removing the subsidy now, while hoping local production will pick up before international prices increase.

if we have sufficient local production, it may not be priced at 130naira/litre even if crude oil prices increase internationally. it is possible it is lower than that.

asuustrike2009:
to add to it,
4. the forces of demand and supply with force the price down at latter date as result of more refinery being built. Excess supply over demand will make the price to fall although it depends on the regulatory commission since it's a monopolistic market

captain247:
You should create a separate thread for your question just like the Op did. My answer is for the Op that asked the question on subsidy.

TonyeBarcanista:
The estimated open market cost for the product is N90 per litre. It should even be lower in real sense.

It's better for the yams to be separated from the goats.

emeeco:
Forces of Demand and Supply are overrated, you don't expect the producer to sell below his production cost. production are done based on perceived demand and at a price. even if there is no regulatory framework that encourages monopolistic tendencies, there is always a limit to which price can fall.
Reality of the Nigerian market shows that it will never fall down to a competitive price.

TonyeBarcanista:
That will not be in the immediate. If the price increases, we hope that government fix the refinery. With a working refinery, the price will even be lower because nobody has to import to serve local need. It is better than having subsidy and still buying at 150 to 200 naira under queue.

asuustrike2009:
It will fall. it's a matter of time before we begin to see the effect. As I earlier said, excess supply over demand forces producers to reduce their price. If we have some many persons refining petroleum products in Nigeria, they would want to secure large market shares as we see happening in the telecommunications industry. Giving license one one or two operators will make the price high at the initial stage ,gradually licenses are issued to more operators of which they wouldn't sell at same price with their competitor.

erico2k2:
I think you guys are getting it wrong in comparison. There are two sides unlike the telecoms. U have raw material and machinaries one is local the other is foreign. Hve any of you checked the cost of petrol abroad? I just found out its $1 in India.