₦airaland Forum

GboyegaD:
Na Buhari dey regulate the price?

lexy2014:
No it's not buhari. It's Mobutu Sese Seko. Who is d minister of petroleum in Nigeria?

GboyegaD:
PPPRA regulates it.

lexy2014:
Who is d minister of petroleum resources in Nigeria & who is d PPPRA responsible to?

kikero:
N.B: I am not here to defend any government...just to explain things.

The price of fuel is going up for two reasons....very simplifed

1.Nigeria is not earning enough cash to keep the price of fuel down because the amount of dollars we are earning from oil aren't enough to pay for subsidy (which exists so long as fuel prices are controlled by the government)

2.Because Nigeria is not earning enough dollars, the value of the naira is going down, which is why the oil price is going up. (In very rough terms, N145 is equal IN value to N65 ten years ago).

3.We cannot increase refining capacity because despite 61 licences issued for refienreis, only people like Dangote are building, because if you build a refinery in Nigeria, because government is controlling prices, anyone refining fuel in Nigeria will sell at a loss.

(That's why Dangote's refienry is not going to bring down prices in the meantime, because Dangote has to pay back loans he took to build his refinery, and then there is the cost. These add up).

4.Oil prices are going up,and since we import most of our refined fuel the price of fuel too has to go up.

5. The solution is simple. Allow marketers to control the price of fuel they sell. Yes, at the end of the day, we pay N200-300 for a liter of fuel...but in return, investors will come and buiild more refienreis, jobs and production icnreases, and competiton brings down prices. And smuggling stops, and government saves money.

kikero:
Well data is a bit cheaper than a few years ago, plus there is the phenonenom of 'data resellers'...who sell data at a cheap price.

But of course, things are still a bit high because operating costs are high....eg power supply is bad in Nigeria, so GSM companies spend more on generating power

(And the reason why power is bad is because it is heavily subsidsed and because ...but that's another story).

nedekid:
Oga, all your explanation makes sense in a sane country but in Nigeria it does not.
See, even if fuel is sold at 500/L, there will still be stories why it is the wrong price and subsidy has to be paid. Make fuel 1k and you will still hear story.
If government is sincere, why not remove all the taxes on fuel? All the silly withholding tax etc after all, petrolium products are essential commodities that are of strategic national importance.

GboyegaD:
Oga, seems you just enjoy this back and forth. I don hear you, na Minister dey determine price.

nedekid:
Oga, all your explanation makes sense in a sane country but in Nigeria it does not.
See, even if fuel is sold at 500/L, there will still be stories why it is the wrong price and subsidy has to be paid. Make fuel 1k and you will still hear story.
If government is sincere, why not remove all the taxes on fuel? All the silly withholding tax etc after all, petrolium products are essential commodities that are of strategic national importance.

kikero:
N.B: I am not here to defend any government...just to explain things.

The price of fuel is going up for two reasons....very simplifed

1.Nigeria is not earning enough cash to keep the price of fuel down because the amount of dollars we are earning from oil aren't enough to pay for subsidy (which exists so long as fuel prices are controlled by the government)

2.Because Nigeria is not earning enough dollars, the value of the naira is going down, which is why the oil price is going up. (In very rough terms, N145 is equal IN value to N65 ten years ago).

3.We cannot increase refining capacity because despite 61 licences issued for refienreis, only people like Dangote are building, because if you build a refinery in Nigeria, because government is controlling prices, anyone refining fuel in Nigeria will sell at a loss.

(That's why Dangote's refienry is not going to bring down prices in the meantime, because Dangote has to pay back loans he took to build his refinery, and then there is the cost. These add up).

4.Oil prices are going up,and since we import most of our refined fuel the price of fuel too has to go up.

5. The solution is simple. Allow marketers to control the price of fuel they sell. Yes, at the end of the day, we pay N200-300 for a liter of fuel...but in return, investors will come and buiild more refienreis, jobs and production icnreases, and competiton brings down prices. And smuggling stops, and government saves money.

iwaeda:
https://www.premiumtimesng.com/business/406891-major-fuel-price-increase-looms-in-nigeria.html

kikero:
N.B: I am not here to defend any government...just to explain things.

The price of fuel is going up for two reasons....very simplifed

1.Nigeria is not earning enough cash to keep the price of fuel down because the amount of dollars we are earning from oil aren't enough to pay for subsidy (which exists so long as fuel prices are controlled by the government)
You are on point

2.Because Nigeria is not earning enough dollars, the value of the naira is going down, which is why the oil price is going up. (In very rough terms, N145 is equal IN value to N65 ten years ago).

3.We cannot increase refining capacity because despite 61 licences issued for refienreis, only people like Dangote are building, because if you build a refinery in Nigeria, because government is controlling prices, anyone refining fuel in Nigeria will sell at a loss.

(That's why Dangote's refienry is not going to bring down prices in the meantime, because Dangote has to pay back loans he took to build his refinery, and then there is the cost. These add up).

4.Oil prices are going up,and since we import most of our refined fuel the price of fuel too has to go up.

5. The solution is simple. Allow marketers to control the price of fuel they sell. Yes, at the end of the day, we pay N200-300 for a liter of fuel...but in return, investors will come and buiild more refienreis, jobs and production icnreases, and competiton brings down prices. And smuggling stops, and government saves money.

kikero:
N.B: I am not here to defend any government...just to explain things.

The price of fuel is going up for two reasons....very simplifed

1.Nigeria is not earning enough cash to keep the price of fuel down because the amount of dollars we are earning from oil aren't enough to pay for subsidy (which exists so long as fuel prices are controlled by the government)

2.Because Nigeria is not earning enough dollars, the value of the naira is going down, which is why the oil price is going up. (In very rough terms, N145 is equal IN value to N65 ten years ago).

3.We cannot increase refining capacity because despite 61 licences issued for refienreis, only people like Dangote are building, because if you build a refinery in Nigeria, because government is controlling prices, anyone refining fuel in Nigeria will sell at a loss.

(That's why Dangote's refienry is not going to bring down prices in the meantime, because Dangote has to pay back loans he took to build his refinery, and then there is the cost. These add up).

4.Oil prices are going up,and since we import most of our refined fuel the price of fuel too has to go up.

5. The solution is simple. Allow marketers to control the price of fuel they sell. Yes, at the end of the day, we pay N200-300 for a liter of fuel...but in return, investors will come and buiild more refienreis, jobs and production icnreases, and competiton brings down prices. And smuggling stops, and government saves money.