₦airaland Forum

artmedia:
WOW! a lot has gone down over here. the 'should we bombard them with emails' debacle, to our Bros Forkadict speaking in spiritual realm as usual, to 2016 Budget vs NLNG GT Recruitment. Una doh. Really good to be back.

@Coolio2014, this week is definitely NOT the week. Though we have all seen from Oga Bab's Channels interview that they really want to push the Train 7 as swiftly as possible so people brace up. I had already said it back then, April 2nd that they were not close to concluding then and that we should keep our minds to end of Q2 - well that is what we should still be looking at. I spoke with my MADAME SAUCY last friday, and she mentioned what our baba Forkadict said about the process being well in an advanced stage. She says 'males' definitely (90% chance of happening - her exact percentage) should come next month, with a 10% chance of it happening earlier or later. But they are almost done and dusted. I implore us not to bother them with anybmails yet till perhaps end of june, but I can almost assure you that a week in june will be 'THE WEEK' as she assured me.

As for me though,

1. Blessed is the one who does not walk in step with the wicked or stand in the way that sinners take or sit in the company of mockers, 2. but whose delight is in the law of the LORD, and who meditates on his law day and night. 3. That person is like a tree planted by streams of water, which yields its fruit in season and whose leaf does not wither— whatever they do prospers.


I know I am prosperous already. IJN. Amen!


#Shalom
#TheWaitIsAlmostComingToAnENd
#QueSeraSera
#BraceForImpact

Rumbling of rain confirmed.

Tightening seat belt on speedboat at NLNG jetty.

Prophet Artmedia, tuale!

LadyF? How did it happen? First unplanned, 'unprogrammed', 'uncalculated' FTC? Good omen.

*peeps, takes note of artmedia's June date and disappears back into oblivion*

My guyoyo. You too plenty much. Your selflessness dey make me dey koto. As always, you remain my best source as far as this process is concerned. Don't worry, I owe you ............... ( you shall get it in Bonny as a wow). I beg help me hola that your MADAME SOURCE. My greatest appreciation goes to the Most High, Jah, for His undeserved kindness. I still believe in His undeserved kindness.

artmedia:
Ewooooo Oga Dane,

That sabbatical was not a small chumchin. Man had to go clear head well well as una people for bonny wan scatter am before. But i'm back now though and as the rumours dey leak, na so we go dey deliver am.

@Wakama6, @ItsTime4me, your boy dey here ever loyal.

ladyF:
been preparing for my post JAMB.

LOL if I hear

Has anyone worked up a theory of how the subsidy removal means June is no longer valid?

Delgado47:
Has anyone worked up a theory of how the subsidy removal means June is no longer valid?

How many times is this government gonna remove subsidy? Or is subsidy now a cat with 9 lives? Also please someone should explain to me how subsidy can be removed and yet price is still regulated? #HonestQuestion

airsaylongcon:
How many times is this government gonna remove subsidy? Or is subsidy now a cat with 9 lives? Also please someone should explain to me how subsidy can be removed and yet price is still regulated? #HonestQuestion

The petroleum downstream sector at the moment constitutes an oligopoly; a cartel, to be precise. Left to their own, they would devise ever unscrupulous means to rip off the rest of us and sooner we'll be having to acquire their products at ludicrous prices. What the government has done is to set an upper limit for the price, set no lower limit whatsoever and throw open the rights to import fuel to any Nigerian company. This should ensure that more people go into the business freely thus morphing the downstream sector towards a perfect competition that will inadvertently drive pump prices down in the long run.
Now whether or not this strategy will work in a country that consistently defies economic theories remains moot.

NPComplete:
The petroleum downstream sector at the moment constitutes an oligopoly; a cartel, to be precise. Left to their own, they would devise ever unscrupulous means to rip off the rest of us and sooner we'll be having to acquire their products at ludicrous prices. What the government has done is to set an upper limit for the price, set no lower limit whatsoever and throw open the rights to import fuel to any Nigerian company. This should ensure that more people go into the business freely thus morphing the downstream sector towards a perfect competition that will inadvertently drive pump prices down in the long run.
Now whether or not this strategy will work in a country that consistently defies economic theories remains moot.

This was exactly what the Jonathan government moved to do in 2012, but the 'chains' people let hell loose on him, all for the sake of politics above national interest. SMH

NPComplete:
The petroleum downstream sector at the moment constitutes an oligopoly; a cartel, to be precise. Left to their own, they would devise ever unscrupulous means to rip off the rest of us and sooner we'll be having to acquire their products at ludicrous prices. What the government has done is to set an upper limit for the price, set no lower limit whatsoever and throw open the rights to import fuel to any Nigerian company. This should ensure that more people go into the business freely thus morphing the downstream sector towards a perfect competition that will inadvertently drive pump prices down in the long run.
Now whether or not this strategy will work in a country that consistently defies economic theories remains moot.

"The Nigerian economy has defied all known economic theories in the world" - Maradona 1992

This is so spot on

NPComplete:
Now whether or not this strategy will work in a country that consistently defies economic theories remains moot.

Meanwhile I must confess, this thread has really smart minds. I hope we all get to work together, the achievements will be mind blowing.

NPComplete:
The petroleum downstream sector at the moment constitutes an oligopoly; a cartel, to be precise. Left to their own, they would devise ever unscrupulous means to rip off the rest of us and sooner we'll be having to acquire their products at ludicrous prices. What the government has done is to set an upper limit for the price, set no lower limit whatsoever and throw open the rights to import fuel to any Nigerian company. This should ensure that more people go into the business freely thus morphing the downstream sector towards a perfect competition that will inadvertently drive pump prices down in the long run.
Now whether or not this strategy will work in a country that consistently defies economic theories remains moot.

Ma Niggur... You've been on stealth mode for a while now. Howdy?

scarletdp:
Ma Niggur... You've been on stealth mode for a while now. Howdy?

My guy!!!! Haven't had a lot of reasons to want to comment recently. But I am still very much with u guys.

NPComplete:
The petroleum downstream sector at the moment constitutes an oligopoly; a cartel, to be precise. Left to their own, they would devise ever unscrupulous means to rip off the rest of us and sooner we'll be having to acquire their products at ludicrous prices. What the government has done is to set an upper limit for the price, set no lower limit whatsoever and throw open the rights to import fuel to any Nigerian company. This should ensure that more people go into the business freely thus morphing the downstream sector towards a perfect competition that will inadvertently drive pump prices down in the long run.
Now whether or not this strategy will work in a country that consistently defies economic theories remains moot.

You said it all,that last paragraph is my fear, all stations have already stuck with the upper limit which is the first sign that it might not work

You said it all,that last paragraph is my fear, all stations have already stuck with the upper limit which is the first sign that it might not work

The question is would you want to sell lower than 145 and reduce your profit margin when all your mates are selling at 145? They could even decide to take an unanimous decision that no one should sell below N145...

But say for example, ifeanyi Uba announces today that his stations will sell at N110 nationwide, then we will all keep our tanks and jerricans till we spot a Capital Oil petrol station. That's when the real competition will start and others may be compelled to lower their prices too. But until then.... #WeWait

ladyF:
The question is would you want to sell lower than 145 and reduce your profit margin when all your mates are selling at 145? They could even decide to take an unanimous decision that no one should sell below N145...

But say for example, ifeanyi Uba announces today that his stations will sell at N110 nationwide, then we will all keep our tanks and jerricans till we spot a Capital Oil petrol station. That's when the real competition will start and others may be compelled to lower their prices too. But until then.... #WeWait

This is where we expect the crave for profits to drive the forces of Demand and Supply & in the long run control prices of the product. If no cartel is formed among them (oil marketers), we will experience what happened with the Telecommunications Industry in 2006. Someone may come in with the idea of price penetration as LadyF mentioned, his demands will rise, more products sold and maybe more profits in the long run. Other competitors seeing this may also decide to lower price, put in palliatives or adopt other means to attract demand and all these will affect the price. But as NPComplete right put, hope Nigeria does not defy this economic logic as always.

Uchboggy:
You said it all,that last paragraph is my fear, all stations have already stuck with the upper limit which is the first sign that it might not work

Yeah. I reckon the government needs to do more to guarantee the efficacy of their current strategy. They need to start making laws to expedite the creation of more refineries in the hopes that it actually drives prices down.
Come to think of it, must refineries be humongous contraptions capable of processing thousands of barrels of crude per day before they are considered worthy of investment and encouragement by presiding authorities? I mean some of our less-than-scrupulous fellow citizens have since perfected the art of illegal refining of crude, while looking over their shoulders, and some of their distillates have ended up in the market. Isnt there a way to encourage people to devise similar, but better designed, contrivances under legal oversight, quality control and regulation? They may not be able to produce quantities that will rival Dangote refinery but the sheer ubiquity of such springing up, if encouraged, will ensure continuous supply. The advantages are manifold

1. More jobs will be created as even SMEs will be set up solely for that purpose
2. Jobs will be created in even rural areas based on their proximity to oil wells as extracted oil can easily be transported nearby for local refining using the easiest mode of conveyance available. Unlike the sort of ridiculous situations we have now where oil producing areas suffer worst fuel shortages than non-oil producing communities.
3. It will reduce pressure on our foreign reserves quickly since there will be no need to source for foreign exchange to import fuel.
4. It will just stimulate the economy leading to more usage of our ports and inland waterways. Crude can be loaded into barges down south and shipped up the River Niger to different places in the north for local refining. Even Onitsha river port will feel less redundant. And since crude is less inflammable than fuel, it is a safer to transport and the highly inflammable end product will need minimal movement on the road before getting to consumers. The need for transporting through pipelines which are prone to sabotage will be reduced ensuring reliability of supply.
5. The byproducts of the refining will also be used to stimulate local economy or sold to other areas where it is in high demand. Petrochemicals can be used to produce fertilizers for local agriculture; lubricants for local use, etc....

The way I see it, it is safer to bet on numerous refineries with smaller capacities than one ginormous one requiring intricate pipeline systems that can be easily blown to smithereens by any ragtag group in the name of correcting perceived slights. It will be easier and better to get 1000 one-thousand-litter capacity fuel producing refineries around the country than a one-million-litter capacity refinery. The former can be completed within a year. The latter is usually prone to bureaucracies and takes a longer time to complete and still ends up putting the wealth of the nation in the hands of the already affluent few.

NPComplete:
Yeah. I reckon the government needs to do more to guarantee the efficacy of their current strategy. They need to start making laws to expedite the creation of more refineries in the hopes that it actually drives prices down.
Come to think of it, must refineries be humongous contraptions capable of processing thousands of barrels of crude per day before they are considered worthy of investment and encouragement by presiding authorities? I mean some of our less-than-scrupulous fellow citizens have since perfected the art of illegal refining of crude, while looking over their shoulders, and some of their distillates have ended up in the market. Isnt there a way to encourage people to devise similar, but better designed, contrivances under legal oversight, quality control and regulation? They may not be able to produce quantities that will rival Dangote refinery but the sheer ubiquity of such springing up, if encouraged, will ensure continuous supply. The advantages are manifold

1. More jobs will be created as even SMEs will be set up solely for that purpose
2. Jobs will be created in even rural areas based on their proximity to oil wells as extracted oil can easily be transported nearby for local refining using the easiest mode of conveyance available. Unlike the sort of ridiculous situations we have now where oil producing areas suffer worst fuel shortages than non-oil producing communities.
3. It will reduce pressure on our foreign reserves quickly since there will be no need to source for foreign exchange to import fuel.
4. It will just stimulate the economy leading to more usage of our ports and inland waterways. Crude can be loaded into barges down south and shipped up the River Niger to different places in the north for local refining. Even Onitsha river port will feel less redundant. And since crude is less inflammable than fuel, it is a safer to transport and the highly inflammable end product will need minimal movement on the road before getting to consumers. The need for transporting through pipelines which are prone to sabotage will be reduced ensuring reliability of supply.
5. The byproducts of the refining will also be used to stimulate local economy or sold to other areas where it is in high demand. Petrochemicals can be used to produce fertilizers for local agriculture; lubricants for local use, etc....

The way I see it, it is safer to bet on numerous refineries with smaller capacities than one ginormous one requiring intricate pipeline systems that can be easily blown to smithereens by any ragtag group in the name of correcting perceived slights. It will be easier and better to get 1000 one-thousand-litter capacity fuel producing refineries around the country than a one-million-litter capacity refinery. The former can be completed within a year. The latter is usually prone to bureaucracies and takes a longer time to complete and still ends up putting the wealth of the nation in the hands of the already affluent few.

I couldn't agree any more with you. Your analysis is spot on. My only concern is that the government should hasten the PIB which is the statute that will regulate all the activities you mention above. Without that we may just have put the cart before the horse.

NPComplete:
Yeah. I reckon the government needs to do more to guarantee the efficacy of their current strategy. They need to start making laws to expedite the creation of more refineries in the hopes that it actually drives prices down.
Come to think of it, must refineries be humongous contraptions capable of processing thousands of barrels of crude per day before they are considered worthy of investment and encouragement by presiding authorities? I mean some of our less-than-scrupulous fellow citizens have since perfected the art of illegal refining of crude, while looking over their shoulders, and some of their distillates have ended up in the market. Isnt there a way to encourage people to devise similar, but better designed, contrivances under legal oversight, quality control and regulation? They may not be able to produce quantities that will rival Dangote refinery but the sheer ubiquity of such springing up, if encouraged, will ensure continuous supply. The advantages are manifold

1. More jobs will be created as even SMEs will be set up solely for that purpose
2. Jobs will be created in even rural areas based on their proximity to oil wells as extracted oil can easily be transported nearby for local refining using the easiest mode of conveyance available. Unlike the sort of ridiculous situations we have now where oil producing areas suffer worst fuel shortages than non-oil producing communities.
3. It will reduce pressure on our foreign reserves quickly since there will be no need to source for foreign exchange to import fuel.
4. It will just stimulate the economy leading to more usage of our ports and inland waterways. Crude can be loaded into barges down south and shipped up the River Niger to different places in the north for local refining. Even Onitsha river port will feel less redundant. And since crude is less inflammable than fuel, it is a safer to transport and the highly inflammable end product will need minimal movement on the road before getting to consumers. The need for transporting through pipelines which are prone to sabotage will be reduced ensuring reliability of supply.
5. The byproducts of the refining will also be used to stimulate local economy or sold to other areas where it is in high demand. Petrochemicals can be used to produce fertilizers for local agriculture; lubricants for local use, etc....

The way I see it, it is safer to bet on numerous refineries with smaller capacities than one ginormous one requiring intricate pipeline systems that can be easily blown to smithereens by any ragtag group in the name of correcting perceived slights. It will be easier and better to get 1000 one-thousand-litter capacity fuel producing refineries around the country than a one-million-litter capacity refinery. The former can be completed within a year. The latter is usually prone to bureaucracies and takes a longer time to complete and still ends up putting the wealth of the nation in the hands of the already affluent few.

Your name is NPComplete and you only want to make.... Common sense. Good point. We will also need to control vandalization and bunkering as it could be come free for all in an attempt by every one to have his/her own mini-refinery and independent filling station.

I wonder where NLC's impending strike and Niger Delta Avengers' palava will drive our recruitment to.

I considered that some areas in the new price regime for PMS as grey. I am seeking clarifications on some of those. I know the bright minds here will do justice.

adenitemi:
I have been bothered about some aspects of the recent new pricing regime released by PPPRA. These are some of the questions I have asked myself over and over and which are begging for answers.

This is an open letter to the government of the day. I hope they put out answers to these posers in the coming days.

1. First of all, why were/are headlines (and everyone, including me initially) screaming "Subsidy Removal"? This is clearly not subsidy removal as there has been none for a while. Why is government not correcting this wrong notion? This is just a case of a new pricing regime for our dear PMS.

2. Does this new regine mean the NNPC won't be involved in importing fuel any longer?

3. If NNPC will still continue their own importation quota, will the NNPC also source for dollars from the blackmarket?

4. If NNPC will still continue their own importation quota, what will this quota be and how much will they retail to Nigerians?

5. Considering the FX differentiation between black market rates and official CBN rates, if NNPC continues to import some quota at CBN rates, won't that create a new cabal like the old Subsidy cabal that cleaned Nigerians out?

6. Supposing NNPC imports their quota and retails PMS, won't they cheat Nigerians with the lower limit of N135 they have set, due to huge FX differentiation between black market rates and official CBN rates?

7. In fact, the amount NNPC should be selling will be about N86.5 which is the old pricing regime and which was without subsidy. If they will not sell at that rate, we will like to know why.

8 . As admitted in the FAQ attached below, the dollar scarcity caused the fuel shortages of almost 5 months that crippled businesses. Why did no one in government address the case as that? Nigerians were confused on what was really happening and the explanations received were different from different FG sources.

9. Still on dollar scarcity, why has CBN pledged $b for Dangote and care less about the other 180 million Nigerians? Are they getting their priorities right?

10. Imported PMS wasn't on the list of the 41 banned imported items. With the new development, is the FG not subtly including it on the list? Like every other items on the list, black market dollars should be sourced to import it.

11. The welfare of Nigerians is number one. Why were other things not put in place before the hike? Mass transit and the likes. One can argue that there is no money presently. However, since the budget has been passed, why did the FG not wait to stimulate the economy first before the new fuel pricing regime? Minister of Finance, Kemi Adeosun has repeatedly talked about a certain quarterly $350billion to be injected shortly I to the economy and targeted towards the critical infrastructural sector. Why wasn't this done first? Wouldn't that have made the hike easier to bear?

12. Finally, does it mean that as crude oil prices rise, the retail price of PMS will also keep rising? The calculation used the present average crude oil prices. When crude oil rises to $70 per barrel, how much will Nigerians be paying for PMS?

These are my submissions. I sincerely wish this government well and hope they get things right. But we need answers to some grey areas.

Thanks.

The thread opened for it...https://www.nairaland.com/3105249/fuel-price-hike-new-pricing#45614416

Phillips Consulting -__-

Phillips Consulting -__-

Tygrins spill it please. Whatever it is you're coding?

tygrins007:
Phillips Consulting -__-

coolio2014:
Tygrins spill it please. What aer you coding?

Household Survey participation.

Oga kenosky you are sighted
Well done sir, any better for the boys and girls

Badema:
Household Survey participation.

This one wey philips consulting remember us so e be like say something is up. Last time they sent a survey like this they followed up with feedback on the NNPC test.

tygrins007:
Phillips Consulting -__-

What do you know about Philips consulting. Are they taking over the GT recruitment from this stage on for NLNG. Abeg help us with info...this place dry pass Sahara and kalahari desert combined

freeradical:
This one wey philips consulting remember us so e be like say something is up. Last time they sent a survey like this they followed up with feedback on the NNPC test.

LOL! Buh they sent dozens of survey mails thereafter and nothing followed up! Sha this can be an exception, truly I wouldn't mind too.

By the way, who came across anything Train 7 Over the weekend? #NLNG #FID #20160budget

artmedia:
Boss! thanks for the shoutout. Na heavy sabbatical man pikin go for. No be small matter. Good to be back.

Oga at the top! Pls oo this place is dry, we need people like you to reactivate the spirits, the chips are really down.

No more sabbatical for you, Sir!

Wishing you a great week ahead.

This NLC strike should be shelfed ohh, if not it would give them another reason for this unending wait. #WeWait
But personal reasons aside,would this impending strike be favourable for our Nigerian economy?