Thanks GOD,is not TINUBU &BUHARI fault but IPOB.

tactius:
Because NNPC cannot, under fuel subsidy , make the profit that is needed to build a refinery...without taking extra loans.

Modified

Since I wrote this comment, I have recieved a lot of responses , including some abuse.

I brief....we are selling fuel at N145. Actual cost is N200 to import it. And we import over 60% of the fuel we consume here. And the government is forcing NNPC to sell fuel at N145 to marketers

The problem is, with such price controls,no one wants to come and invest in the petrol sector. If there were no price controls...if marketers were allowed to sell fuel at the price they want...we would have had investors coming in to make their profit by investing in things like relfieries, and so on...and this brings down prices eventually.

We were here before , with the GSM industry. Because Obasanjo refused to subsidise GSM....GSM companies made their profits and invested in a lot of facilites with the aim of growing their business. And competition did its thing and brought prices down.(All the GSM antenna, and cables were put there by the GSM companies...government did not spend a kobo).

And to anyone thinking Dangote will save us...Dangote is not going to refine fuel at N150 and above and sell it at N145 PER liter. He would lose money. So, he is either going to export, or subsidy goes.

That's why I think subsidy should go. Yes, we would pay N250 and above for fuel. But in Niger, Cameroon and Benin, they pay over N280 per liter of fuel...and Benin, Cameroon , even Niger are oil producers. But investment, and competiton would bring prices down, and jobs would be created.

Cheap fuel is cursing our economy. Time we faced reality. Because all this subsidy is being used to feed corrupt subsidy scammers in government and society. If you like, abuse and curse me. Reality is harsh. We cannot run bsinesses in this country as welfare organisations.

your comment is very one sided. you want to pretend that Nigeria cannot afford refineries until subsidy is removed. what's the cost of refineries compared to the benefits for the populace in the long run? even if we have to borrow won't it be a good investment internally and export wise. we've been borrowing with little to show for it. while i agree that artificially controlling prices scare investors, that is just one side to the discourse

I blame Yar adua for calcelling the sale of refineries by Obasanjo. No matter what private sector ownership is better than public sector. By now we would have forgot that these refineries are not working.

The solution is to deregulate and sell the refineries..... alas I fear if anyone would want to buy them now considering that a far more modern and efficient dangote refinery will be your competition.

None of us will buy our yams from kogi for N1k and bring them to lagos to sell for N800. Why then do we expect government to do that for us with petrol? The fact that its our resource in the ground doesn't mean that extracting and processing it doesn't come with a cost.

We are all rational with our own businesses, but we refuse to be rational with government business. Same goes for electricity prices.

Four wasted years and he is saying it as if it means nothing. In countries where the word "honour" means something guys like this would have committed "Harakiri".

This guy should just resign as he earlier promised

All these Economic Jargons doesn't put food on the table of the common man

donbachi:
Bobrisky was even more reliable last 4yrs than buhari and his apc government...he cut off his preeq,added bumbum,bleached and grew breast...still buy benz...c'mon refinery,school feeding,power supply,health care etc..una no fit.

...but u still vote them in for another 4yards...sorry...365×4=??

hugoboss36:
...but u still vote them in for another 4yards...sorry...365×4=??

i dey mad?

donbachi:
i dey mad?

.. ....my brother, those that voted that baba go slow will definitely regret it....can u imagine wat Nigerians are passing through every day... ...may God help us...

I can't believe what I am reading

tactius:


1.Even if it was comprehensive...the thing is, all our four refineries at full capacity (and even with all the millions spent...they were never able to get capacity above 50%...which is what your link said by the way) cannot meet our domestic needs.

The last refinery we built in Nigeria was commissioned in 1988. Since then, the number of cars in this country has increased.

And even then, as far back as 1990...we were having scarcity of fuel partly because (my opinion) all the four refienreis could not meet demand adequately.

2.The article you quoted gives figures from 1998-2008. (not complete, better details here)

From your analysis i observed that the landing cost of fuel never came down. That's shows that even if subsidy goes, the cost of fuel will get higher and remain higher. No competition will bring it down. Believe me there will be no competition sef. The dealers in petroleum products are organised cronies not salt and pepper dealers. Labour union know this and that's why they fight against subsidy removal. We benefit nothing from the government, not light, not water, not security, let them pay the subsidy. The only way forward is local refining. Dangote is already doing a great job. Let the government build modular refinery they promised if TAM is too much for them. Nigeria should save money from the cost of governance or recover all the Abacha loot and use it to rehabilitate the refineries. I knew from the beginning there's not much Kachikwu can do. Government over the years including this one lack the will power to do the needful and for me it's not removing subsidy.

I still don't agree with the subsidy storyline!

NNPC IS JUST A CORRUPTION cesspool - recall the subsidy probe...?

You claim no profit for the sellers/importers ; but the pricing template quotes margins for everyone, even bankers (financing costs).
The bridging or transport cost is allocated but we all pay our truck drivers before loading at Apapa, and pls show me how many people gets refunded.

Recall the probe and top executives fumbling on answering questions like how many liters in a barrel; how much of each refined products should come from the barrel; what happened to other products in the crude swap; HOW MUCH IS REALLY NEEDED TO REFINE, yet NNPC WOULD QUOTE HIGHER spot prices as landing cost (with N13-21 margins) and we believe them.

Ask why NNPC engages in SPOT BUYING (and always quoting spot prices as landing costs!) when they have their subsidiary - Duke Oil, to do far lower hedged futures/options pricing?

Ask why NNPC refuses to TRULY liberalize/deregulate licensing - only those ready to go with their lies on landing costs are given licenses!

What NNPC has spent asTAM on refineries is more than Dangote is spending to build a new one.