₦airaland Forum

NGpatriot:
Tell your bro that the government can not keep subsidizing everything because it is unsustainable.

Tariff must align with the cost of generation, distribution and transmission, if not, investors won't invest in the power sector because they can not recoup their investments or make ends meet.

I blame the government for shielding Nigerians from these obvious realities for decades, but better late than never because it is unsustainable.

We are broke and we can not keep borrowing to fund subsidies and recurrent expenditures. doing so means bankruptcy.

surgical:
same shit all the time,which investor,you think we are as dumb as you guys,like take the price to ten times what it is now,no investor will come under this regime,cause there are other determinants of FDI, the government is just using Nigerians for experiment.

abouzaid:
Oil Marketers Deny NNPC On
N5.35bn Petrol Subsidy Payment
Okechukwu Nnodim, Abuja



Oil marketers on Monday expressed
surprise over the resurfacing of
petrol subsidy in June 2020 as
disclosed by the Nigerian National
Petroleum Corporation in its latest
operations report. According to
marketers of petrol, the government
had since March this year declared
that the downstream oil sector had
been deregulated and as such there
was no need for petrol subsidy.
The Independent Petroleum
Marketers Association of Nigeria and
the Petroleum Products Retail Outlets
Owners Association of Nigeria told
our correspondent in Abuja that they
had not received any subsidy
payments from government. The
PUNCH reported on Monday that
NNPC made an under-recovery of
N5.35bn in June. Under-recovery is
the losses incurred by the oil firm
due to the difference between the
subsidised price at which the
corporation sells petrol and the price
which it should have received to
meet its production cost. The Group
General Manager, Group Public
Affairs, Division, NNPC, Kennie
Obateru, had explained that the
return of under-recovery in June was
due to the payment for stock held by
marketers at the onset of the removal
of subsidy by the Federal
Government. “Since the subsidy
removal started with reduction in
pump price, marketers have been
paid the differential of the PPPRA
verified stock they held and it is
spread over a period of six months,”
he said. But the National Public
Relations Officer, IPMAN, Ukadike
Chinedu, said it was surprising to
hear of subsidy payments when the
downstream sector had been
deregulated. He said, “They didn’t
pay us any subsidy money. You are
also aware that the market has been
deregulated. We are now dispensing
products based on international
crude oil market price. “Furthermore,
you are aware of the price regime
and this regime is regulated by the
price of crude oil in the international
market. So, where is the subsidy
coming from?”
Chinedu added, “You are also aware
that in the months of February,
March, April, May and June, the
PPPRA released guiding prices for
petrol based on price deregulation.
So as at what point did the subsidy
come in?
On whether marketers got any
support when the pump price of
petrol crashed from over N140 per
litre to about N125 per litre some
months ago, the IPMAN official said
nothing of such happened. Chinedu
said, “There is no differential that
was paid to us because when they
reduced the cost of the product from
N145 to N123, they did not pay any
differential to anybody.
https://punchng.com/oil-marketers-
deny-nnpc-on-n5-35bn-petrol-
subsidy-payment/

freeborn02:
What did Atiku do that hasn't been done under buhari?

Simplyleo:
Oya, more of that pls.

I don't want to derail the other thread.

Im really enjoying the sound.

freeborn02:
Ok

May you labor in vain and a stranger eat the fruit of your labor. Amen.

May this melody of curses resound in your home forever in Jesus name. Amen.

amc:
Atikuloot is an olodo who didn't go to school, just like some of his followers who agree with his tweet.

The answer is CURRENCY DEVALUATION.

Originakalokalo:
Don't bother sir.

You don't belong to the kingdom I am talking about.

Those that belong understand what I posted.

Thanks for your advice though.

bigtt76:
Theoretically, he's right but he also failed to put into consideration the following:

1. We import the refined product in dollars and the importers need to source the dollars at the prevailing exchange rates
2. The final cost of the product is based on the product's landing cost (taxes + import duties + cost to transport product etc)
3. Low crude oil price translates to low dollars inflow into the country which means high exchange rate due to high demand

By the time all of these are taken into consideration, the price to the end-users would shoot up. This scenario would be different if our refineries are working but as we all know, the refineries are being sabotaged because of the people who are benefiting from the importation of refined products.

saajus:
Atiku should have researched the total cost of production. Production cost may have increased. The meaning of subsidy is that Govt is not subsidizing anything, not that our pump price will be reflecting the global market price. Oil price has no effect on the cost of production. Cost of production is still the same. Our cost of production is still high.

Nfora:
Atiku is a total disappointment!

Subsidy kept the fuel price lower than the global markets,including that of USA.

The subsidy was removed just this year,May 2020.And Atiku is comparing USA 2019 price.


Even a primary school student would expect an automatic rise in the price,without the subsidy .

We are importing fuel ,oil price has gone up,exchange rate has gone up,subsidy has been removed and Atiku expects price reduction. What a shame!


Anyway I am not surprised.

You get messed up in a bid to be populist and playing to the gallery and emotions, in a matter that requires only the application of elementary logic.

I beg it is not by force to be president of Nigeria oooo...

Kubernetes:
PEF is a fund set-up by the Nigerian government for the reimbursement of petroleum marketing companies for any losses suffered by them arising from the sale of petroleum products at uniform prices throughout Nigeria,but the marketers despite this payment,they still hide the petrol to make it scarce and DPR has not been able to tackle this issue

Kubernetes:
PEF is a fund set-up by the Nigerian government for the reimbursement of petroleum marketing companies for any losses suffered by them arising from the sale of petroleum products at uniform prices throughout Nigeria,but the marketers despite this payment,they still hide the petrol to make it scarce and DPR has not been able to tackle this issue

NovusHomo:
And of course Atiku seems to have forgotten that refined Petroleum is imported, and that import is paid for in $s, and that our foreign reserve in those $s is low, that we are deeply indebted... The guy should stop playing politics with his selective amnesia.

anonimi:
Do you think that Fashola young and intelligent?


www.nairaland.com/attachments/3115090_seunoloketuyi1223747310596353674000681876567738n_jpegf23910bd963a3dbb9d74ad4621bdda8b


www.nairaland.com/attachments/6440050_dregaeuxcaaxmzn_jpegbc221e09788124eef1ab789b91afa35e

nextstep:
What country is Uncle living in?

Nigerians use imported petrol, bought with dollars, which has jumped from #350 to #470 in one year. The dollars were obtained with crude oil, which has fallen in price.

Not only that, the old price was the subsidized price (i.e. it was not true market cost). When subsidy is removed, cost of fuel should rise to its real value.

I think Uncle knows all this - after all he is an astute businessman - but I suspect he just wants to rile people. I'm not a Buhari apologist, but this tweet reeks of opportunism, not genuine concern.

Officialgarri:
Atiku better sit down patiently with the person that explained the economics behind deregulation instead of rushing to social media.
These people called Politicians are just as dumb as anyone.

Fine, when Buhari first deregulated in 2016, Oil price dropped "due to competition" by 1 naira, but what happened after, it flew right up to #145.
This is because Oil is always in high demand and the higher the demand the higher the price.

Officialgarri's law states that "Any product with increasing demand and without corporate regulations will have it's market price competing mostly at increasing prices" e.g Cryptocurrencies
Hence, the introduction of subsidy. If not for regulation and subsidies, gas was initially supposed to be selling at about #179 but the Government pays about #46.

So someone tell me something interesting about deregulation

bigfish3k:
Are we supposed to be importing fuel after 5yrs of APC governance

Officialgarri:
Atiku better sit down patiently with the person that explained the economics behind deregulation instead of rushing to social media.
These people called Politicians are just as dumb as anyone.

Fine, when Buhari first deregulated in 2016, Oil price dropped "due to competition" by 1 naira, but what happened after, it flew right up to #145.
This is because Oil is always in high demand and the higher the demand the higher the price.

Officialgarri's law states that "Any product with increasing demand and without corporate regulations will have it's market price competing mostly at increasing prices" e.g Cryptocurrencies
Hence, the introduction of subsidy. If not for regulation and subsidies, gas was initially supposed to be selling at about #179 but the Government pays about #46.

So someone tell me something interesting about deregulation

Racoon:
You have aptly surmised it bro.The best thing is for the government/NNPC hands off regulating the price & sole handling of petroleum products & let the market forces determine it for once.

Let them pass the PIB, deregulate the downstream sector & open up the market.The subsidy regime is profiting the cabal that have kept our refineries in their present comatose state despite the huge TAM and other humongous overhead costs.

alphaNomega:
Lol. Kingdom? Your so-called king is a slave driver!

Officialgarri:
Atiku better sit down patiently with the person that explained the economics behind deregulation instead of rushing to social media.
These people called Politicians are just as dumb as anyone.

Fine, when Buhari first deregulated in 2016, Oil price dropped "due to competition" by 1 naira, but what happened after, it flew right up to #145.
This is because Oil is always in high demand and the higher the demand the higher the price.

Officialgarri's law states that "Any product with increasing demand and without corporate regulations will have it's market price competing mostly at increasing prices" e.g Cryptocurrencies
Hence, the introduction of subsidy. If not for regulation and subsidies, gas was initially supposed to be selling at about #179 but the Government pays about #46.

So someone tell me something interesting about deregulation

nextstep:
We are not oh my brother... in fact I'm eagerly awaiting Dangote's refinery.

But it's like the issue of importing fuel is too much for any president to conquer... from mid 70's till now.

NovusHomo:
And of course Atiku seems to have forgotten that refined Petroleum is imported, and that import is paid for in $s, and that our foreign reserve in those $s is low, that we are deeply indebted...