₦airaland Forum

Cromcruach91:
1. Because by 2013, N87 was only being paid in Lagos and Abuja. By 2016 when we raised prices we were running out of money in dollars to subsides and import fuel, which meant landing costs had increased, so a price increase was done.

If we had not done so,we would have been in serious economic crisis.

2.If we want prices to go down to 87 naira again, which is what you want, we would have to drain our foreign reserves to pay subsides again. No thanks. We would be as broke as Venezuela if we did that.

Venezuela pays less than 80 naira per liter for fuel. Their foreign reserve is less than $10 billion.

Uncle, No I am not asking for a reversal of prices all I am saying is the government shot itself at its foot as at when they took the decision in 2016 to increase to 145. The motive was never foreign reserve as NNPC started making profit from it. I remember I published an article in vanguard about it saying its just a weather that will soon change. Imagine the amount we are paying now as subsidy far greater than what we ought to pay.

This is actually when the price is suppose to increase as expected with every commodity that experiences changes in prices but No the government was after money to make to run the government.

obailala:
You mean currently?..

yes and even B4

erico2k2:
yes and even B4

There's no way it can be up to N300, else subsidy would have been up to N3trillion by now.

obailala:
There's no way it can be up to N300, else subsidy would have been up to N3trillion by now.

Ok I give you this assignment name one country in the world where you can land PMS from to 9ja @ N400 .

Cromcruach91:
Good.

So NNPC can stop subsidizing fuel, and so that we eventually face facts and Deregulate .

Deregulate

what are you deregulating, another way to increase prices and inflict more pain on the masses, its a silt argument, build refineries and charge appropriate prices, not importing inflation to the country

erico2k2:
Ok I give you this assignment name one country in the world where you can land PMS from to 9ja @ N400 .

Oga, cut the riddles and simply explain your point; the country where it comes from, how does that matter?...

How did you arrive at your over N300 landing cost conclusion?... If that were the case, how come PMS still sells for N145?... That woukd mean a subsidy of at least N155 per litre.

obailala:
Oga, cut the riddles and simply explain your point; the country where it comes from, how does that matter?...

How did you arrive at your over N300 landing cost conclusion?... If that were the case, how come PMS still sells for N145?... That woukd mean a subsidy of at least N155 per litre.

Geat you got a figure . You guys are too lazy to research . I gave a simple assignment you turned it to bck n forth wordings . Simple put it.the difference in landing price is the true cost of subsidy don't forget to add tax . Let me give you head start cheapest PMS in the world is in venuzela and they too subsidize PMS up to %90 so we can't buy from there .
As we speak the cheapest PMS in the UK is £1.18

erico2k2:
Geat you got a figure . You guys are too lazy to research . I gave a simple assignment you turned it to bck n forth wordings . Simple put it.the difference in landing price is the true cost of subsidy don't forget to add tax . Let me give you head start cheapest PMS in the world is in venuzela and they too subsidize PMS up to %90 so we can't buy from there .
As we speak the cheapest PMS in the UK is £1.18

You haven't still clarified your point.. So because pms in the Uk is £1.18, you have simply done a conversion and assumed landing cost of pms in Nigeria has to be over N300?

obailala:
You haven't still clarified your point.. So because pms in the Uk is £1.18, you have simply done a conversion and assumed landing cost of pms in Nigeria has to be over N300?

I have.my point is this nowhere in the world where you can land PMS from at N300 . Simple .

erico2k2:
I have.my point is this nowhere in the world where you can land PMS from at N300 . Simple .

Bro you are wrong! I dont know the exact figure as at today, but PMS landing cost in Nigeria is currently less than N200; if there's any reason the NNPC/PPPRA would want to lie about landing cost, they would more likely be inflating the figure to steal money, not the other way around.

obailala:
Bro you are wrong! I dont know the exact figure as at today, but PMS landing cost in Nigeria is currently less than N200; if there's any reason the NNPC/PPPRA would want to lie about landing cost, they would more likely be inflating the figure to steal money, not the other way around.

You said I'm wrong and can present figures to establish that.the only way for the FG to Ci er that scam up was to limit imports to NNPC . The scam the eff is the quantity imported if not in 2 days clime there is no profit in pms importation . So the quantity got inflated . Ie supply 2 ships and present docs for 10 ships . .U are buying into what the NNPC has published in its audits which are over inflated . Let me shine a light on it.70% of our pms comes from China . Chk the pump price of China .

erico2k2:
You said I'm wrong and can present figures to establish that.the only way for the FG to Ci er that scam up was to limit imports to NNPC . The scam the eff is the quantity imported if not in 2 days clime there is no profit in pms importation . So the quantity got inflated . Ie supply 2 ships and present docs for 10 ships . .U are buying into what the NNPC has published in its audits which are over inflated . Let me shine a light on it.70% of our pms comes from China . Chk the pump price of China .

The NNPC is saying the landing cost of PMS is about N180, you consistently claim it is a lie, that the true cost must be over N300; and then you turn around to say NNPC is OVER-INFLATING because it wants to steal?... Where is the logic in this?

Lol... guy maybe you need to go back to bed, and then when you wake up refreshed, try and re-examine the logic of your argument again.

obailala:
The NNPC is saying the landing cost of PMS is about N180, you consistently claim it is a lie, that the true cost must be over N300; and then you turn around to say NNPC is OVER-INFLATING because it wants to steal?... Where is the logic in this?

Lol... guy maybe you need to go back to bed, and then when you wake up refreshed, try and re-examine the logic of your argument again.

so have you checked cost of petrol around the world

erico2k2:
so have you checked cost of petrol around the world

That petrol sells for £1.18 in UK, it doesnt mean it has to sell for over N500 in Nigeria. A pack of benson and hedged cigarrette sells for over £10 (~N5000) in the UK, but the same brand sells for less than N500 in Nigeria. So Oga please leave this your repeated inconsequential question about how much petrol sells for around the world.

Meanwhile I'm still waiting for you to explain your logic about NNPC buying petrol at over N300 and telling Nigerians they bought it for N180. You termed it "over-inflation". I'm not doubting that the govt is trying to swindle Nigerians somehow, and neither am I doubting that you may have a point. But I'm just struggling to understand your point as it makes no logical sense.

A boss sends his servant on an errand to go buy a commodity. The servant returns and tells his boss he bought it for N180. You claimed the servant actually bought it for over N300 but is lying in order to swindle his boss. Can you be kind enough to explain the logic in your allegation?

obailala:
That petrol sells for £1.18 in UK, it doesnt mean it has to sell for over N500 in Nigeria. A pack of benson and hedged cigarrette sells for over £10 (~N5000) in the UK, but the same brand sells for less than N500 in Nigeria. So Oga please leave this your repeated inconsequential question about how much petrol sells for around the world.

Meanwhile I'm still waiting for you to explain your logic about NNPC buying petrol at over N300 and telling Nigerians they bought it for N180. You termed it "over-inflation". I'm not doubting that the govt is trying to swindle Nigerians somehow, and neither am I doubting that you may have a point. But I'm just struggling to understand your point as it makes no logical sense.

A boss sends his servant on an errand to go buy a commodity. The servant returns and tells his boss he bought it for N180. You claimed the servant actually bought it for over N300 but is lying in order to swindle his boss. Can you be kind enough to explain the logic in your allegation?

[b][/b]
the logic is tis, the only way they can make profit from this was to inflate the quantity of supply .Im finding this strange for you to understand, how can the servant buy a commodity for N180 where there is no where in the world that sell for less than N300. don't ou smell a rat?
use this as a guide mayB it will make more sense
https://www.globalpetrolprices.com/gasoline_prices/
so if you check, there are just 8 countries in the world we could import from for less monies.

obailala:
That petrol sells for £1.18 in UK, it doesnt mean it has to sell for over N500 in Nigeria. A pack of benson and hedged cigarrette sells for over £10 (~N5000) in the UK, but the same brand sells for less than N500 in Nigeria. So Oga please leave this your repeated inconsequential question about how much petrol sells for around the world.

Meanwhile I'm still waiting for you to explain your logic about NNPC buying petrol at over N300 and telling Nigerians they bought it for N180. You termed it "over-inflation". I'm not doubting that the govt is trying to swindle Nigerians somehow, and neither am I doubting that you may have a point. But I'm just struggling to understand your point as it makes no logical sense.

A boss sends his servant on an errand to go buy a commodity. The servant returns and tells his boss he bought it for N180. You claimed the servant actually bought it for over N300 but is lying in order to swindle his boss. Can you be kind enough to explain the logic in your allegation?

you forgot 65% of the total cost of petrol is tax in the Uk and same is true of tobacco? really?

erico2k2:
you forgot 65% of the total cost of petrol is tax in the Uk and same is true of tobacco? really?

Good stuff! You are beginning to help me answer your own questions. Keep the answers coming, keep searching within and answering yourself. Very soon you will also realise your upside-down logic all by yourself.

At least youve now acknowledged that there are certain internal factors which could make a commodity sell for different prices in different countries. So a simple question for you, if you agree there's a minimum price regulatory tax which forces B&H cigarette packs to sell for £10 in the UK, do you think the same tax would be imposed on the packs sold outside the UK?... If not, why did you bring up the comparison of PMS prive in UK vs Nigeria in the first place?

erico2k2:
[b][/b]
the logic is tis, the only way they can make profit from this was to inflate the quantity of supply .Im finding this strange for you to understand, how can the servant buy a commodity for N180 where there is no where in the world that sell for less than N300. don't ou smell a rat?
use this as a guide mayB it will make more sense
https://www.globalpetrolprices.com/gasoline_prices/
so if you check, there are just 8 countries in the world we could import from for less monies.

If the idea is to make money by falsely inflating the quantity supplied, so why bother deflating the price by up to 40%? Isnt that already cancelling the marginal profit they try to steal by inflating the quantity supplied?

If I have an intention to corruptly steal money, why then would I buy a commodity N300 and tell people I bought it for N180?... Shouldnt it be the other way around?... Quite amusing that you still cant see your flawed argument. I suggest you go take a deep nap

obailala:
If the idea is to make money by falsely inflating the quantity supplied, so why bother deflating the price by up to 40%? Isnt that already cancelling the marginal profit they try to steal by inflating the quantity supplied?

If I have an intention to corruptly steal money, why then would I buy a commodity N300 and tell people I bought it for N180?... Shouldnt it be the other way around?... Quite amusing that you still cant see your flawed argument. I suggest you go take a deep nap

Xcuse me . Where did it say it was bought for N180 and from where plz .
The only publications I have seen said N171 . Now from the list of them countries in that file who can supply us for that amount ? ?can U land PMS from these 8 countries listed for N171 ? ?or you did not bother to go fru the link . I suggest u wake up frm ur sleep .

obailala:
Good stuff! You are beginning to help me answer your own questions. Keep the answers coming, keep searching within and answering yourself. Very soon you will also realise your upside-down logic all by yourself.

At least youve now acknowledged that there are certain internal factors which could make a commodity sell for different prices in different countries. So a simple question for you, if you agree there's a minimum price regulatory tax which forces B&H cigarette packs to sell for £10 in the UK, do you think the same tax would be imposed on the packs sold outside the UK?... If not, why did you bring up the comparison of PMS prive in UK vs Nigeria in the first place?

Have you not bought stuff from the USA b4 to the uk?don't you pay the said taxes ?
Have you not bought goods frm uk to Nigeria do t you pay taxes ? Or are you confusing yourself with VAT ? This is lame

erico2k2:
Have you not bought stuff from the USA b4 to the uk?don't you pay the said taxes ?
Have you not bought goods frm uk to Nigeria do t you pay taxes ? Or are you confusing yourself with VAT ? This is lame

erico2k2:
Xcuse me . Where did it say it was bought for N180 and from where plz .
The only publications I have seen said N171 . Now from the list of them countries in that file who can supply us for that amount ? ?can U land PMS from these 8 countries listed for N171 ? ?or you did not bother to go fru the link . I suggest u wake up frm ur sleep .

Wonderful! The matter is even worse than I thought; how come I'm the only one witnessing this funny dude's inverted logic?

@erico2k2, Okay sorry Oga, NNPC imports fuel at over N300/litre but lies to Nigerians that it buys it for N171. The idea is for the government guys to steal the -N129 deficit. You win abeg! Bye!

Wiseandtrue:
I am in support of scraping the subsidy afterall Buhari himself once admitted that there is nothing like subsidy

So where is this coming from

Fuel pump price was N87 including fuel subsidy. Under Buhari, it is N145 with subsidy

Its either Buhari is very very clueless or he is the biggest thief without conscience that this country has ever come across

Secondly people will complain when things are going wrong

This administration is not getting it!

ejibaba:
So why was it increased to 145? @85 we paid lesser subsidies now 145 we pay more subsidy...Guy, even if you are paid won't you for once think of your children? How much are you paid compared to what they steal? God help you

@bolded, funny how everyone seems to miss a very vital and obvious point which answers all the questions. Nigeria imports all its fuel with dollars; if imported PMS cost N142/litre in 2014 when the dollar was N160, do you still expect the same imported PMS to cost the same N142 when the dollar now sells for N360?

When comparing landing costs/pump-price/subsidy value between 2014 and 2018, don't forget to factor in the fact that the Naira has been devalued by over 100% between the 2 periods being compared. With oil prices hitting $75 this week, landing cost should currently be around ~N190-N200/litre and subsidy payments will continue to increase. This vicious subsidy cycle will continue until Nigeria grows up and starts refining its own fuel. I expected the current government to take ambitious loans to scramble modular refineries as a permanent solution, but the lazy government preferred the option of waiting for Dangote to complete his refinery. Unfortunately, with Dangote refinery is completed, whilst it may force Nigeria to stop importation, I don't foresee Aliko selling for anything less than N200/litre.
http://www.punchng.com/rising-oil-price-pushes-petrol-landing-cost-higher-nnpc-to-spend-more-on-subsidy/

Just to clarify, NO! this isn't a defense of anybody or government, it's just a clarification of the common confusion I keep reading online regarding people asking why Nigeria should still be paying subsidies even though PMS now sells for N145.