Why not

Burger01:
Of course... This is expected. Next would be the crash in pump price.

For where. Wait till oil price climbs to $70 per barrel and Naira crashes to N400 to $1. Nigerians will later pay N200/ liter

And the kunu sipping dullard want to count this as achievement? Not ssuprised , when an illiterate is in power every decline in economic indices is counted as dividend.

mistasameer:


Actually it doesn't affect GDP in the way which you have portrayed. Gross Domestic Product roughly explained is a measure of the monetary total exports of all goods and the services by a country in a given fiscal year. The drop will better be explained by the fact that since deregulation, it has become less/marginally profitable for profiteers who would usually smuggle fuel already subsidized to "neighboring" countries to sell.

What school did you learn your economics??

You said GDP is "measure of the monetary total exports of all goods and services by a given country in a given year".

By you definition, since our GDP as at 2014 was $510 BILLION, then that figure is equal to our total exports of goods and services.



Sorry sir, you need to go back to school.

GDP is Gross Domestic Production. which actually means the total assumed monetary value of the productivity of a given country in a specific time. So all productivity whether exported, imported or consumed locally adds up to GDP.

This Country Nigeria Self. Don't Be surprise To See EFCC Probing Ibe kachukwu

I CRY for my dear country (Nigeria) where hardship and economic austerity is an achievement.

pdppower:
Yes, it has reduced but our cost of living has increased by 300 percent.

Robbing Peter to pay Paul...nonsense.

drss:
u dey mind zombies. one tin dat characterize emerging economies is energy consumption. america n china ar not economic world powers for notin. dem both dey consume high amount of fuel n dem apetide dey increase daily.
once again d dullard has succeeded in destroying d economy.

But have we taken our time to see if alternative source of power have been given considerable attention and their own contribution to our GDP for instance in Iseyin, Oke ogun part of Oyo state i learnt the FG has embarked on massive cultivation of sugarcane for ethanol production and already on the verge of completing the installation of some heavy machines. Even the so called developed econonies are no longer relying on fossil source to power their industrialization they are now embracing cleaner,efficient and bio friendly source of energy one of the reasons responsible for the sharp fall in global oil price. Infact i was discussing with one of my friends that have you notice that the previous hike in the price of kerosine has now forced so many ppl to embark on the use of cooking gas becos it is efficent and affordable so if the FG should come today to say kerosine consumption has fallen by sometin percent does that mean gas consumption would not supplement for the shortfall in kerosine contribution to our GDP?

Consumption didn't reduce at all. No more incentives for those who were smuggling petrol out of the country after claiming subsidy money from the FG, then took the same product to neighboring countries to sell at higher price thereby creating scarcity in the country.
No more signing of importation documents to claim fuel subsidy when in actual fact, they didn't import a drop of fuel.

I must commend Kachikwu for his works as GMD in spite all short comings he has managed against all odds to bring some level of transparency in NNPC.

KUDOS to him, now we wait to see what Mr. BARU has to offer.

adconline:

For where. Wait till oil price climbs to $70 per barrel and Naira crashes to N400 to $1. Nigerians will later pay N200/ liter

As much as many for see this to be the case in the nearer future I believe the CBN Liberalization policy is what would determine if we would end up buying petrol at N200/ltr, if there is enough FOREX for importer to bring in the product then be rest assured the price of petrol would drop.

Ogunleti01:
But have we taken our time to see if alternative source of power have been given considerable attention and their own contribution to our GDP for instance in Iseyin, Oke ogun part of Oyo state i learnt the FG has embarked on massive cultivation of sugarcane for ethanol production and already on the verge of completing the installation of some heavy machines. Even the so called developed econonies are no longer relying on fossil source to power their industrialization they are now embracing cleaner,efficient and bio friendly source of energy one of the reasons responsible for the sharp fall in global oil price. Infact i was discussing with one of my friends that have you notice that the previous hike in the price of kerosine has now forced so many ppl to embark on the use of cooking gas becos it is efficent and affordable so if the FG should come today to say kerosine consumption has fallen by sometin percent does that mean gas consumption would not supplement for the shortfall in kerosine contribution to our GDP?

True what you have said but the price of gas has also risen, for some reason we have not been getting FOREX from the huge gas reserve we have in the country and this is a big worry, since there is now a consumer shift in taste from kerosene to gas.

There is nothing like deregulation. People can no longer afford to burn the petrol anymore. Nigeria is on second quarter recession with double digits inflation of almost 16%. The purchasing power has reduced by 30%, with poverty spiraling out of control. My neighborhood has rate of vacant homes as tenants can no longer afford rents and are moving to smaller apartments.

It is either the government is ignorant or are simply trying to confuse their fellow illiterates who by-the-way voted them in.

Did u park your car? Did your wife sell her? As the transport fares gone up? From my Opebi to Yaba is still N150 and N200. Same from Ikeja Bridge. Opebi to Ojota Keke is N50. Oshod to Maryland and Ojota is N150 and 200 respectively. Please go relax. PMS did not raise price but dollar exchange. Ghana is going through worse experience today. Ethiopia is on long stretch of retrenchment and yesterday the Ethiopia Airlines just sack 80 staff.

mrvitalis:
And we paid subsidy for the 30% for years.. . Who actually benefited from this things
PDP was a cancer we actually removed

To be honest PDP wanted to remove subsidy but the current APC along with occupy Nigeria said no.. I have never seen a thief try to do away with their loot

Impenia:
Two possible theories responsible for the drop in consumption:

(1) High price of PMS together with the increased level of hardship has inadvertently reduced demand for the commodity.
(2) Due to complete subsidy removal, the true consumption of PMS is becoming apparent. Most of the figures bandied about in the past by PPPRA may have been deliberately padded just to get subsidy from government on those extra numbers.

it is either. u made a valid points

SeverusSnape:
True, Many people can't cope with the new price.

The hardship in the country isn't helping issues, many people have parked their vehicles and are now using public transport.

But some months (and years) back, One dullard said there's nothing like subsidy.

That is the whole point of deregulation na. When people don't buy it, the suppliers profits will take a hit which in turn would mean they will have to reduce price. Bros, it is all about supply and demand.

part of the reduction in consumption is as a result of reduction in smuggling a it is not as profitable as it was before

Vendoor:


This feels good

trust me, it is not good.
If the reduction was due to increased power supply or better alternative to transportation, then it is good.
But I assure u that the reduction is purely a result of increased hardship and reduced purchasing power.

Islie:




http://punchng.com/deregulation-petrol-consumption-falls-30-says-fg/

Awww #yawns like they have stats of how much we consume in a day.

GenWOJUOLA:
Why wouldn't it drop? When d price of a good increases by about 80%, d demand would have to drop too.I hav parked my car, two of my neighbors have also parked theirs, d oda sold his wife's car. What Buhari failed to understand is that everything in this country runs on fuel!!!! The barber, the restaurant, manufacturing industries, even govt offices! With increase in cost of goods nd no increase in purchasing power, wat did Kachikwu and co expect People would reduce consumption and as such manufacturers would also reduce output and by extension reduce the qty of fuel purchased to run their factory.

all you wrote is latin to buhari. pls get Femi to translate it to him in hausa. He is already jubilating their is 30% reduction. most nigerians walk on foot now why wont there be reduction mtchwwwwwww

drss:
u dey mind zombies. one tin dat characterize emerging economies is energy consumption. america n china ar not economic world powers for notin. dem both dey consume high amount of fuel n dem apetide dey increase daily.
once again d dullard has succeeded in destroying d economy.

That has been problem with must of you wailing zombies; every myopic in thinking just to prove points no matter how senseless and unwarranted the points are. Why do you not considered the other fact that ''Due to complete subsidy removal, the true consumption of PMS is becoming apparent. Most of the figures bandied about in the past by PPPRA may have been deliberately padded just to get subsidy from government on those extra numbers.'', as was raised here by someone?
It's not bad criticising government policies nor is opposition. However, we shouldn't turn criticism nor opposition to mean madness. Each time, you are on nairaland exposing your ignorance in the name of criticism of government policies. You call mr president a dullard, yet no one has ever seen what your sophisticated illiterate father contributed to nigeria's growth. You need to learn a life.

bwfore last election I was told by Buhari during campaign in my state;if voted he buhari will make fuel pump price #40per lter, now I understand I am being scam buhari will not see peace for scaming both me an my community

The true reason for the reduction in consumption is because those that used to take our subsidize petroleum products to sell at high rate to the neighboring countries are not able to do the bad business again... God bless Buhari .... God bless Nigeria ...

Wallade:
The major reason for the significant drop in consumption must be that subsidy removal made the business of diversion of petroleum products to neighboring countries unattractive and unprofitable.

In the past, petroleum marketers ship petroleum products through Nigeria with disguise that the entire products are for Nigerian market. They claim subsidy on the shipment from the Nigerian government and then divert the bulk of the products to neighboring West African countries where they sell above Nigeria's regulated price.

It may shock you that petroleum products that probably was not shipped into Nigeria were presented as received inventories to claim subsidy payments for products not supplied.

That was the magic - the more you look, the less you see - of those days of subsidy.

Peasants don't know about this and they will cry economic nose dive

before last election I was told during campaign in my state;if voted he will make fuel pump price #40per lter, now I understand I am being scam buhari will not see peace for scaming both me an my community

The truth is Nigeria was not consuming 40 million liters of fuel daily. It was padded by the marketers to keep on fleecing the country. What we have now is a true reflection of the actual consumption. Thanks to the able Buhari government that has the political will to remove the fuel subsidy thereby dealing a major blow to the oil cartel that has been milking Nigeria dry for such a long time.

The truth is tha Nigeria was not consuming 40 million liters of fuel daily. It was padded by the marketers to keep on fleecing the country. What we have now is a true reflection of the actual consumption. Thanks to the able Buhari government that has the political will to remove the fuel subsidy thereby dealing a major blow to the oil cartel that has been milking Nigeria dry for such a long time.

All I know is since the new price, I haven't bought a full tank of fuel(70litres) my movements have greatly reduced, yes there were issues of round tripping and smuggling but regardless the price has also affected (negatively) our local demands

mrvitalis:
And we paid subsidy for the 30% for years.. . Who actually benefited from this things
PDP was a cancer we actually removed

You reason like your master - certificateless dullard of duara,no difference.

Keep blaming pdp

Even me no dey buy petrol again