₦airaland Forum

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.

Kachikwu promised to work with the new GMD and thanked President Mohammadu Buhari for the opportunity given him to manage the corporation.

He said, “It is surprising that in the 11 months, I’ve managed to serve as GMD of NNPC, as Minister of State for Petroleum Resources, as OPEC President, as the President of APPA and I’ve just been appointed the Chairman of NNPC board; all in 11 months. There are not many people in the world who would have those opportunities within that time frame or be given that opportunity by a leader. So we all have the President to be very thankful to.”

On his future role as minister, he said he would work on the Petroleum Industry Bill, gas terms, restructuring of other parastatals and the country’s upstream business.

Vendoor:
This feels good

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.

Keneking:
30% increase in price and 30% reduction in contribution to GDP

Buhari sef

Trustyd1:
I don't agree with u,
Since the increased I've reduce by far my consumption. At N87 per litre N500 could buy me 4litres and I'll have change then run my gen. But at N145 per litre, 3Litres is already abt N500 and will run the gen in less time.
Let me analyse the impact of this increase. 1. No more power supply so we that depends on power to do our work are less productive. I'm a movie Editor and for like 1week now we have not have electricity for more than 3hrs. People that pays me are not willing to increase their pay so when I check how much it will cause me to do a job of 3week on steady gen power I've to turn down some jobs that will make a litle profit. Now who is gaining? I never support the subsidy, even when GEJ removed it I supported it but the government should make good plans to make the product available at affordable price. At least they promise during their campaign that it will be sold for N40.

2rutalk1:
"We are saving over N1.4trillion annually from subsidy removal, we have saved over N3.1 trillion from TSA, we have saved over N1.8trillion from ghost workers, we have recovered over N3.7trillion from looters" yet you can't fund the budget, you want to borrow money to pay salaries, no single infrastructural project has been initiated by your administration, Nigerians are suffering. What kind of Economic principle can justify this? "it is all about the greatest good for the greatest number". You guys are better off while the masses are worse off. Any economic progress that does not improve the welfare of the people is useless, if you like save $50trillion, as far as it cannot create jobs and reduce poverty, it is useless.

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

doctokwus:
Let's forget all d figures previously bandied about in regards to all of our economic and social indices, almost all were corruption driven.
We are about to start knowing the true state of our economic demands and supplies

elvymoore:
ur submission makes so much sense. I believe d reduction in consumption is BC round tripping has been discouraged by deregulation. even when PMS was sold at N145 and above, consumption did not drop. so why now. basically judging from my locality I don't think that there is much drop in how people buy fuel. the same lifestyle persists even though there is hardship. bottom line is that that 30% and more reduction to come is as a result of bogus claims from marketers who are bent on exploiting the subsidy system. at times Nigerians let's look beyond sentiments and analyse issues properly

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

erico2k2:
I like to ask you a logical question . From what country do you think petrol can be imported at landing price N17 0 into Nigeria.??

codedguy1:
So we practically now consume around 20-25million litres daily depending on what the initial figure was which was really not known.

We bandied between 30 - 40million litres as our daily consumption in the past.

I think the main reason for this reduction is reduction in smuggling of the product because of its unprofitability after the removal of the subsidy.

mrvitalis:
170??
I don't get... But most of our petrol come from Russia and the rest and the landing cost is like.. 100-110

erico2k2:
Can we have a debate to check if subsidy was removed or not ?

codedguy1:
We all know there are contradictory assertions as to what happened in the oil sector.

Wether is was subsidy removal, liberalisation, price modulation, or the effect of dollars against the naira or even our reduction in the price of our oil. Whatever, something was done.

So to have a debate if subsidy was removed or not throws up a lot of different positions on the matter.

I just chose one of the options to buttress my point concerning the amount of our daily consumption.

mrvitalis:
170??
I don't get... But most of our petrol come from Russia and the rest and the landing cost is like.. 100-110

codedguy1:
We all know there are contradictory assertions as to what happened in the oil sector.

Wether is was subsidy removal, liberalisation, price modulation, or the effect of dollars against the naira or even our reduction in the price of our oil. Whatever, something was done.

So to have a debate if subsidy was removed or not throws up a lot of different positions on the matter.

I just chose one of the options to buttress my point concerning the amount of our daily consumption.

erico2k2:
I think subsidy was not removed . They all know the game they are playing . The are operating on agreed platform .

greatness22:
Why won't it fall drastically? Some Nigerians can't cope with the new price.

codedguy1:
Well something happened and its a combination of all I initially wrote.

Buhari does not know what subsidy is.

Osinbajo said it wasn't removed.

Kachikwu said it was price modulation or something like that.

But whatever it was it stop roundtripping and I believe 145naira discouraged smuggling which I believe accounts for 60% of the reduced consumption.

We shall still see the effects of what was done in the future.

I just feel this govt is gambling with the economy.

Hearme:
I aree that some people can't cope but I dont agree that it will sum up to 12million littres daily since we were told we consumed 40million littres daily. Majority of this percentage drop is from the diversion of petrol to Benin republic, Niger republic and Cameroon.