₦airaland Forum

martineverest:
ok sir.....I will need about 1000 different types by February

You gerrit!!
Consider it done....BGG

dingbang:
When atiku becomes president, sharp practices will halt to zero

Atiku proposed to reduce fuel price to N90 per liter.

Big mistake for the following reasons....

1.Landing cost of fuel is N165....meanwhile selling it at N90 means government would be PAYING FAR MORE in 'underrecovery costs(n70 per liter) for fuel importaiton to NNPC...and NNPC STILL wont be making a profit. Nor would marketers.

2.Eventually it would become unsustainable, NNPC would run into debts...and long queues would return.

3.And no one would want to build new refineries, and those who build refineries would focus on exporting the fuel/refined products abroad.Because selling in Nigeria means they sell at a massive loss.

And people were laughing at APC's N45 per liter promise.

post=74146651:
You gerrit!!
Consider it done....BGG

twale Baba...u too much

martineverest:
twale Baba...u too much

One love bro....

ejimatic:
In their days there would be fuel scarcity now.they would make millions of naira st this time.this they did for 16 years stealing our money making masses poorer. The educated Nigerians like us cannot be deceived. The uneducated Nigerians will not follow them.If umbrella carriers are unrepentant thieves we will use our brooms to clean our rooms always.

Actually marketers were losing money under both the umbrella and the broom

Subsides means that marketers find it diffiuclt to sell fuel in Nigeria and make a profit. Under the subsidy, a marketer would import fuel, and sell it below the price he or she imported it at and the government pays the difference.

And eventually, such practice becomes unsustainable.

That's why there were scarcities, and why sharp rpactices like importing fuel and smuggling it to Benin republic or Niger to sell at the higher prices over there was going on.It was the only way marketers would survive.

What Bubu has done is made NNPC the sole importer of fuel. NNPC imports fuel at N165, sells at N145 per liter to marketers, and government pays NNPC the N20 difference per liter. Meanwhile marketers are expected to sell at N145(some majors like Mobil and Conoil sell at N142)and neither marketers nor NNPC make a profit.

And then there is corruption.

theoldpretender:
Well...

1.Now...NNPC imports fuel at N165 per liter...and sells at N145 per liter.

2.The subsidy government calls underrecovery....just pays the N20 difference.

3.NNPC thus does not make a net profit. As a result....NNPC cannot build new refineries, nor invest in exisiting ones.(NNPC is a business, not the government bureau itis run as).

4.On subsidy removal...what Bubu did in 2015 was raise the price of fuel from N87 to N145. At the time, landing costs of fuel was N132..so truly subsidy paying stopped (except for the debts left over in subsidy claims from the GEJ government which were high..more on that, and why it was not GEJ's fault)..BUT....when landing costs went above N145 a year later...government had to start paying subsides to avoid a price raise.

5.Still on no 4....what Bubu did was a PARTIAL removal....which is what governments since IBB in 1986 have done.(IBB's partial removal even led to some economic recovery that lasted two years)

6.Under GEJ...in 2012...GEJ raised fuel prices to N140 from N65.At the time, landing costs were N99.

7.Nigerians protested, GEJ reduced it to N97....meanwhile due to high oil prices...landing costs shot up above N100 in 2013...leading to scarcity galore., and the subsidy claims debts, as well as maekters engaging in scams like smuggling and selling fuel on the black market to survive as well as making claims for fuel not imported(That's why blaming GEJ for fuel scarcity is wrong...he tried to solve the problem...Nigerians dont want to pay for fuel).

Thanks a lot for this explanation. It has helped me understand a lot.

theoldpretender:
Subsidy answer man here...
Theme music....!

1.For many years, marketers have been selling fuel at a price below the import price for fuel in the name of subsidy. So, in order to balance their books, they hoard fuel...and sell to black marketers, and smuggle to neighbouring countries, as well as make fradulent subsidy claims too

And they do all that to make sure they don't have to sack workers, and to make profits too.

As at now...under subsidy landing cost is N165, fuel price is N145.NNPC now imports most of the fuel....but loses money as a result. Subsidy payments just pay the extra N20 per liter...they don't let NNPC make a profit.

2.Because NNPC is not making profits, they cannot invest in new refineries, or imporve the old ones.

3.Because fuel is subsidized, investors are not building refineries, because who wants to refine fuel at a cost above N145 and sell at a loss?

4.And speaking of refineries...the last new one (apart from Dangote 1)...was built in 1988. Since then the number of cars and generators in this country has increased . Meaning our needs have increased. Meaning if the refineries were operating at full capacity, we would still NOT BE PRODUCING ENOUGH.

5.Solution is to remove subsidy, and use the billions spent on subsidy for something else. Like railways. Meanwhile prices go up, we pay over N200 for fuel...BUT...investment flows in, more people woould get into the refining business...and things get better.

6.Past governments have been warning us about the problems with subsidy since 1993. The problem is Nigerians prefer the subsidy because they don't want to pay more for fuel. So the problems continue...

Now you are talking, not some shouting PMB and PDP 16 years. Government pay more for subsidy, yet we pay more for fuel. Is it not better subsidy is removed totally?

Pubichairs:
for the first time, since 2011, Indeed it's a change, we have been longing for....





but it shouldn't withhold us from sending the impostor back to Sudan come next year

This is not the first time. There was no fuel scarcity 2015&2016 yelutide only last year I experienced fuel scarcity under buhari.

theoldpretender:
Actually marketers were losing money under both the umbrella and the broom

Subsides means that marketers find it diffiuclt to sell fuel in Nigeria and make a profit. Under the subsidy, a marketer would import fuel, and sell it below the price he or she imported it at and the government pays the difference.

And eventually, such practice becomes unsustainable.

That's why there were scarcities, and why sharp rpactices like importing fuel and smuggling it to Benin republic or Niger to sell at the higher prices over there was going on.It was the only way marketers would survive.

What Bubu has done is made NNPC the sole importer of fuel. NNPC imports fuel at N165, sells at N145 per liter to marketers, and government pays NNPC the N20 difference per liter. Meanwhile marketers are expected to sell at N145(some majors like Mobil and Conoil sell at N142)and neither marketers nor NNPC make a profit.

And then there is corruption.

Your view and analysis are respected ...Good one

Ibegtodiffer:
It is childish to always think that anyone who points out the failings of this government is a PDP apologist. Watched the news all through the period, same report everywhere. "Things are hard". It can't be coincidence that everyone in different locations of country are saying the same thing against the system. #factsplease

your view and opinion are respected..But why are things hard? who caused them? My brother or sister if you know money The umbrella made in their tenure you would never like them they plunged us into this mess.I am not saying the broom is perfect but it it will take some period to correct the economic foolishness of the umbrella.They don't want that that is why they are using propaganda of all sorts.If they spent our money well when oil was booming we would be smiling today.Rather it was a galore of corruption...Ask Okonjo Ewealla how they looted our treasury like water and they are saying they have solution to Nigerian problems which they did not have in their wasted 16 years.....

theoldpretender:
Well...

1.Now...NNPC imports fuel at N165 per liter...and sells at N145 per liter.

2.The subsidy government calls underrecovery....just pays the N20 difference.

3.NNPC thus does not make a net profit. As a result....NNPC cannot build new refineries, nor invest in exisiting ones.(NNPC is a business, not the government bureau itis run as).

4.On subsidy removal...what Bubu did in 2015 was raise the price of fuel from N87 to N145. At the time, landing costs of fuel was N132..so truly subsidy paying stopped (except for the debts left over in subsidy claims from the GEJ government which were high..more on that, and why it was not GEJ's fault)..BUT....when landing costs went above N145 a year later...government had to start paying subsides to avoid a price raise.

5.Still on no 4....what Bubu did was a PARTIAL removal....which is what governments since IBB in 1986 have done.(IBB's partial removal even led to some economic recovery that lasted two years)

6.Under GEJ...in 2012...GEJ raised fuel prices to N140 from N65.At the time, landing costs were N99.

7.Nigerians protested, GEJ reduced it to N97....meanwhile due to high oil prices...landing costs shot up above N100 in 2013...leading to scarcity galore., and the subsidy claims debts, as well as maekters engaging in scams like smuggling and selling fuel on the black market to survive as well as making claims for fuel not imported(That's why blaming GEJ for fuel scarcity is wrong...he tried to solve the problem...Nigerians dont want to pay for fuel).

wow.

:湥 潴昣昸.

I'M A FILLING STATION MANAGER & I CAN TELL YOU THAT THIS ISN'T SUCH A GOOD NEWS ON TO ME.....

FRANKOSKI:
I'M A FILLING STATION MANAGER & I CAN TELL YOU THAT THIS ISN'T SUCH A GOOD NEWS ON TO ME.....

If government stopped paying subsidy and allowed guys like you to set your prices...thus shooting up your profits....you would be much happier.

theoldpretender:
If government stopped paying subsidy and allowed guys like you to set your prices...thus shooting up your profits....you would be much happier.

huh