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Nairaland Forum / Nairaland / General / Politics / No Plan To Remove Subsidy Now - Federal Government Insists (10310 Views)
Yuguda: A Certain President Chose Not To Remove Subsidy To Protect His Life / Labour Reacts To Tinubu’s Plan To Remove Subsidy / Petrol Landing Cost Hits ₦216, Daily Subsidy Now ₦4.64 Billion (2) (3) (4)
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Blue3k2: 7:54pm On Apr 14, 2019 |
Lol yall win sooner or later. Just deregulate and let market work. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Nobody: 7:55pm On Apr 14, 2019 |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Nobody: 7:57pm On Apr 14, 2019 |
gcof: I wish I could....however, having spent a lot of my time explaining how subsidy works to many Nairalanders over the past one week, and being called names like 'Zombie', Criminal., and 'Supporter of Oppression' as well as 'Buharist' (which hurts me a lot because I don't back either PDP or APC) for my pains......I am tired. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Reference(m): 7:57pm On Apr 14, 2019 |
gurunlocker: That is what it is, increase in price which only reduces subsidy. It doesn't remove it altogether. Removal means you and I pay the right price for what we consume. Right now you and I are paying more than the right price. Nigerians in reality are paying more than the market price for fuel. The real excess goes to corrupt government officials and smugglers. The rest of us get poorer by the year. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by gcof(m): 8:01pm On Apr 14, 2019 |
tactius:its quite unfortunate the kind of insults people dish out on this forum. The biggest problem is that beyond supporting different political parties, a lot of people do not know or understand how some of government policies work and as long as it is coming from another party, then it is evil 1 Like |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by VolvoS60(m): 8:08pm On Apr 14, 2019 |
tactius: ^^^ |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by TruthinAction: 8:12pm On Apr 14, 2019 |
How I wish we could have the kind of revolution that happened recently in Algeria and Sudan, I will be most glad. This government is the most corrupt and they don't have the moral right to continue to lead. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by VolvoS60(m): 8:15pm On Apr 14, 2019 |
tactius: ^^^ I have a couple of questions. What is the total cost at the pump head of 1 litre of locally refined premium motor spirit in Nigeria? What is the total cost (including landing costs, distribution costs etc.) at the pump head of 1 litre of refined premium motor spirit imported into Nigeria? |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by VolvoS60(m): 8:18pm On Apr 14, 2019 |
Reference: ^^^ There is a subsidy on imported refined premium motor spirit. Agreed. Is there a subsidy on locally refined premium motor spirit? |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Abdul3391(m): 8:27pm On Apr 14, 2019 |
tactius: money that will still be looted get sense abeg |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Nobody: 8:30pm On Apr 14, 2019 |
VolvoS60: 1. Landing costs right now are at 205 naira 2.I can't answer the question on cost at the pump head.. The problem is, we don't have accurate values of how much fuel is consumed in Nigeria.... Anyway, the whole fuel subsidy thing is so murky and corruption ridden. Better it goes so that the market does its thing and clears everything. Governments should not be setting prices. 1 Like |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Nobody: 8:31pm On Apr 14, 2019 |
Abdul3391: Good evening, and grow up. I did not insult you, yet you decided to insult me |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by kokomilala(m): 8:40pm On Apr 14, 2019 |
It's a wasted and wasting generation, missing in the line of destiny. This subsidy should have been used for either agriculture or education. What is going on is the service of a most select few at the expense of the general public. 1 Like |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by VolvoS60(m): 8:41pm On Apr 14, 2019 |
tactius: ^^^ The issue of cost at the pump head is central to this matter sir. We have established that there is a subsidy on imported refined PMS. You provided details of current landing costs (205 Naira) which alone far exceed the fixed pump head price of 145 Naira - so it is very clear that there is a subsidy on imported PMS. But is there a subsidy on locally refined PMS? 1 Like |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Nobody: 8:45pm On Apr 14, 2019 |
VolvoS60: The problem is that we import most of the PMS we use in this country...90% as at 2017 So, the amount of locally produced PMS is not that significant to the discussion. Note that three refineries together produce 5-6 million liters of fuel daily...while Lagos needs 8million (The newest refinery in Nigeria was built 31 years ago...so existing refining capacity is not sufficient) And the honest reason why NNPC is not building new refineries? Subsidy basically does not let NNPC make a sufficent profit to invest in new refineries, It also incentivises corruption and fuel smuggling as a result. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Opinedecandid(m): 8:49pm On Apr 14, 2019 |
Bossontop: https://www.google.com/amp/s/www.thecable.ng/buhari-fantastically-confused/amp |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Akinz0126(m): 8:50pm On Apr 14, 2019 |
Someone should please help me oooo I made a withdrawal for a friend on my betking acct and is still showing pending ooooo |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by VolvoS60(m): 9:04pm On Apr 14, 2019 |
tactius: ^^^ I beg to differ, Sir. Nigeria has the dubious distinction of being the only OPEC country (correct me if I am wrong) which imports refined PMS in such large volumes. Some years ago, the ambassador of another major oil producer broke diplomatic protocol and stated publicly here in Nigeria that he couldn't understand why Nigeria imports refined petroleum products. Things were not always like this. There was a time in this country when over half (possibly far more) of the demand for PMS was met by Nigerian refineries. As long as we rely on expensive, US dollar priced, imported refined PMS then subsidy will always remain a moving target. Nigeria does not have any control over the US dollar so it makes zero sense for Nigeria to depend on imported refined PMS when crude oil is right here underneath Nigerian soil. It is very interesting that we all have details of how much it costs to import a litre of refined PMS but no one seems to know (or if they know, they aren't saying) how much it costs to produce a litre of refined PMS locally. This question is important because it naturally leads to the next one: if there is no subsidy on locally refined PMS, why are the refineries not working? 3 Likes |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Nobody: 9:11pm On Apr 14, 2019 |
VolvoS60: There is a subsidy on refined products. The only time there isn't a subsidy is when politicians like Buhari in 2014 and PDP politicans now want to pretend there isn't to score points. Also, the last refinery Nigeria built was 31 years ago. Right now...three of them produce 6million liters of PMS together. Lagos consumes 8million, Nigeria consumes 54 million liters of PMS a day In short, our needs have shot up since the last refinery was built in 1988. I'm sorry, but you cannot expect us to still be operating at fuel consumption levels from 1988. It's 2019 after all....the past is a different country. And it is subsidy that is preventing the investment needed to bring in new refineries. I'll leave you with this quote from an article
And again from the same article Subsidies aggravate fiscal imbalances, crowd-out priority public spending, and depress private investment, including in the energy sector. Subsidies also distort resource allocation by encouraging excessive energy consumption, artificially promoting capital-intensive industries, reducing incentives for investment in renewable energy, and accelerating the depletion of natural resources. Most subsidy benefits are captured by higher-income households, reinforcing inequality. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by VolvoS60(m): 9:12pm On Apr 14, 2019 |
tactius: ^^^ My initial question still stands. I need to know the cost of producing a litre of refined PMS locally to know if there is a subsidy or not. Does it cost less than 145 Naira to locally refine a litre of PMS in Nigeria? More than 145 Naira? Or is it equal to 145 Naira? 1 Like |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Nobody: 9:15pm On Apr 14, 2019 |
VolvoS60: I have answered you just now...but the problem with your question is that 1.You assume that since we completed the last refinery in 1988...fuel consumption level has not increased in 30 years. 2.You also assume that our refineries can meet local demand now. They can't ....and I posted the figures in the post you quoted...which you did not read. 3.If we need new ...well, just read the other post. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by israelmao(m): 9:20pm On Apr 14, 2019 |
But there is plan to remove it later?So they have finally agreed that there is subsidy. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Oloriode: 9:22pm On Apr 14, 2019 |
This APC government was founded on lies. They told us that they have removed subsidy in 2015 that was why the pump price was hiked to N145/litre, Buhari equally said that subsidy is a fraud. Where did this subsidy in question came about? It means APC government is a fraud. Shikena! |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by VolvoS60(m): 10:00pm On Apr 14, 2019 |
tactius: ^^^ Your post came in after mine - fastest fingers I suppose. There seems to be some confusion on which of your points I disagreed with in one of your last 3 posts. I actually disagreed with your assertion that "the amount of locally produced PMS is not significant to the discussion" and not your assertion that "we import most of the PMS we use in this country". I hope that is clear. But my main question remains unanswered. In your last post or so you stated that "there is a subsidy on refined products" without clarifying whether you meant imported or locally refined products. My position is very simple and I will restate it. If it costs less to locally refine a litre of fuel than the regulated pump price of 145 Naira - then there is no subsidy. Interestingly, nobody is willing and ready to provide this information on the record. You were able to show (at the click of a button) that it costs 205 Naira for a litre of imported fuel to land in Nigeria. Where are the same costing figures for locally refined fuel - for us to compare? The article you quoted in your other post proves my point. The article states very clearly that Nigeria has little domestic refining capacity and this capacity is inefficient. That sir, is the crux of the matter. Efficient domestic refining capacity is the solution and it has nothing to do with the international price of imported refined PMS. If the (all in) cost of locally refined PMS is less than the regulated pump head price, (and locally available PMS is sufficient to meet local demand) there is no need for importation and therefore no subsidy to speak of. To address your most recent points - I did not assume Sir, that our fuel consumption has not increased in the last 30 years, or that our (existing) refineries can meet local demand today. I cleared that up in the first few sentences of this post - there is no doubt that we do need significantly higher product volumes to meet today's demand than we did 30 years ago. Where those product volumes will come from is a separate issue which we are thrashing out here. Your other points about how "subsidy is preventing the investment needed to bring in new refineries" and "subsidy basically does not let NNPC make a sufficent profit to invest in new refineries" are a whole new controversy and require further explanation.... 2 Likes |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by bishopkay: 11:00pm On Apr 14, 2019 |
Someone please help me ask buhari which subsidy he's removing again? Him no talk say e don comot am since before? Confused buffons |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Easy1401(m): 11:01pm On Apr 14, 2019 |
[quote author=MikeBetty post=77540728] Do We Still Have Subsidy In Nigeria? APC Is Pure Scam And Led The Most Corrupt Govt In Nigeria. We Were Told That There Is Nothing Like Fuel Subsidy In Nigeria. After Jerking Petrol Price From #89 To #145 In The Name Of Subsidy Removal We Are Still Hearing Subsidy Removal. Apc E No Go Better For Una. [/qu everything about APC is scam no good will come out of them, we were once told that subsidy has been removed, how did subsidy sneaks in again? |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by SEEDORF441(m): 11:14pm On Apr 14, 2019 |
Gowon-1973: 6k to 8.45k (40.83%) Murtala-1976: 8.45k to 9k (6.5%) Obasanjo -Oct 1,1978: 9k to 15.3k (70%) Shagari-Apr 20,1982: 15.3k to 20k (30.72%) Babangida-Mar 31, 1986: 20k to 39.5k (97.5%) Babangida-Apr 10, 1988: 39.5k to 42k (6.33%) Babangida-Jan 1, 1989: 42k to 60k (42.86%) Babangida- Mar 6, 1991: 60k to70k (16.67%) Shonekan(82 days in power)-Nov 8, 1993: 70k to N5 (614.29%) Abacha- Nov 22, 1993: N5 to N3.25k (price dropped 35%) Abacha-Oct 2, 1994: N3.25k to N15 (361.54%) Abacha-Oct 4, 1994: N15 to N11(price dropped 26.67%) Abubakar-Dec 20, 1998: N11 toN25 (127.27%) Abubakar-Jan 6,1999: N25 to N20(price dropped 25 %) Obasanjo -June 1, 2000: N20 to N30 (50%) Obasanjo-June 8, 2000: N30 to N22(price drops 26.67%) Obasanjo-Jan 1, 2002: N22 to N26 (18.18% Obasanjo-June, 2003: N26 to N42 (61.54%) Obasanjo-May 29, 2004: N42 to N50 (19.05%) Obasanjo-Aug 25, 2004: N50 to N65 (30%) Obasanjo-May 27, 2007: N65 to N75 (15.39%) Yar’ Adua-June, 2007: back to N65(price drops 15.39%) Jonathan -Jan 1,2012: N65 to N141 (116.92%) Jonathan – Jan 17, 2012: N141 to N97 (Price drops 31.21%) Jonathan – Feb, 2015 N97 to N87 (price drops 10.31%) Buhari – May 11, 2016: N87 to N145 (66.67%) Yar’Adua was the only president who did not increase pump price of fuel. He reduced it from N75 to N65. |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by Bbbwings: 11:23pm On Apr 14, 2019 |
These guys are testing the waters for fuel price hike Next level |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by GCSolutions(m): 1:18am On Apr 15, 2019 |
Let's call a spade a spade. Who said we are no fools? Who voted these liars and heartless people back to power? Let's open our eyes to the reality. We, the youth are our own problem. 65% of votes casted came from the youth. Go check the records. Don't worry, everybody go dey alright when "next level" starts proper. Wiseandtrue: |
Re: No Plan To Remove Subsidy Now - Federal Government Insists by GCSolutions(m): 1:24am On Apr 15, 2019 |
God bless you bro. A lot of them feigning their anger here are part of the problem. Let them keep voting in oppressors and thieves while they get hardship and neglect in return. They won't kuku listen. Na their problem be that. Flets: |
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