…NNPC meets MOMAN, IPMAN, others in Abuja

By Udeme Akpan

THERE were indications, Monday, that stakeholders would soon emerge with a new price of petrol as the landing cost of the product rose from N151 to N180 per litre, due mainly to rising price of crude oil in the international market.

The rise of crude oil price from $58 to more than $63 per barrel, yesterday, culminated in refiners incurring additional cost in the process of procuring, refining and supplying petrol to consumers, thus causing marketers to also incur additional cost, especially as a bulk of the product is currently imported into the nation.

Nevertheless, it was gathered that the pump price could rise from N162 to about N190 per litre when the marketers’ margins and other considerations are added.

However, the Nigerian National Petroleum Corporation, NNPC has summoned the major marketers, independent marketers and other stakeholders to a crucial meeting, which was ongoing at the time of writing this report.

Informed sources in the sector, who pleaded anonymity, said stakeholders were generally opposed to further increase in price in order not to cause instability in the sector, and by extension the nation’s economy, meaning that the NNPC would continue to bear the burden of subsidy as the government did not make provision for it in the 2021 budget.

However, speaking virtually on, ‘After Deregulation, What Next?’ in Lagos, February 11, 2021, Mr. Adetunji Oyebanji, Chairman, MOMAN, had said: “With a fully deregulated downstream industry, the natural fear and anticipation of Nigerians is the increase in the price of transportation, food items, and the attendant economic hardships.

“Solutions to these challenges can only emanate from a collective resolve by all stakeholders to face up to these challenges together. We must as a national debate and share pragmatic and realistic initiatives to mitigate the impact of a pump price increase that could follow a fully deregulated downstream.

“We stand with Nigeria and Nigerians through this difficult time and support the Federal Government’s promise to pass the Petroleum Industry Bill, PIB this year and fully deregulate the petroleum downstream sector.

“The benefit of a liberalized downstream is the most visible means of growing the economy in the medium to long term. Nigeria can become the refining hub of West and Central Africa and eventually the whole of Africa if we stick to this path of investing in new refineries, adopting a cost optimization initiative, building an environment that promotes competition, and creates a sustainable petroleum sector. These actions would lead to increased employment, reduced poverty, and reduced social inequity. We must take advantage of the opportunities brought by the African Continental Free Trade Area agreement (AfCFTA) and fully benefit from our barrels of crude, getting the maximum value it can bring Nigeria.

“MOMAN is calling for a national discourse among all stakeholders including Government, Labour, Civil Society Organizations, the Organized Private Sector, and Operators, not on the merits or demerits of petrol subsidy removal, but on the initiatives that can be taken to ease the impact of the subsidy removal on the most vulnerable in our society.”

He had also said: “The public, which includes the downstream operators, are key stakeholders in the Nigerian oil and gas industry.

“We believe that as a country, we have and should move beyond the debate on the arguments for the removal of petrol price subsidies. The discussion we should be having today is how best to maximise the benefits of the removal of price controls and subsidies while minimizing the adverse effects of this action on our citizens.”

https://www.vanguardngr.com/2021/02/just-in-new-petrol-price-imminent-as-landing-cost-hits-n180-per-litre/

Kerosine Nko?

[img]https://media./images/e39550ee8b0fe5d974922cdd66da386a/tenor.gif[/img]

....and palm oil?

That's natural. Its part of the offshoot of subsidy removal.

If FG should remove subsidy from schools too, it could take hundreds of billions off FG's neck and take fees of fed unis to N600k per student.

Nothing is working under this lifeless Buhari administration.

One begins to wonder if it's not the same old blood tasty fool that attacked GEJ when a litre was sold at N87.

It shall never be well with people who brought in this failure and calamity into power just because of their selfish interest and sentiments.

Welcome to d next level

I'm still saying it o ' the juju buhari and him cabinet use for Nigerians na the highest o ' God pls continue to provide for me no time to pray for Nigeria, because some people don thy validate their membership card,even when wating them go chop and where them go sleep nor sure for them tomorrow. God help us

Useless Goverment

To my greatest surprised no newspaper has carry the news about the new petroleum price, Do we still NLC? TUC? useless govt.

I have seen it, spoken it and prophesied it....Fuel price in Nigeria will hit N200 by March 2021 and N221 by September 2021!

Welcome to next level, by the time Bubu is done with Nigerians, their senses will be restored fully

Lool

Nigerians have not seen anything, lets Dangote finish building his refinery first.

The fun part of this thread is that most people will rightly blame the government, but then will come and ask the government to worsen the situation by spending more on subsidy. That means that we continue to throw more of the money we could have used to maintain and repair and upgrade refienreis on subsidy

To say nothing of the fact that we would end up spending more money on makrketers who will smuggle the fuel out of the country to sell at higher prices, and make their profit.


Here is a harsh truth. SUBSIDY HAS TO GO.

I'll repeat it again SUBSIDY HAS TO GO.


Yes, we would spend more on fuel. Yes, we would find things harsh for some time, and yes, I agree with you that APC is not the best form og governance either (I've never voted for them self...)


But, eventually

1.More savings from the money we spent on suibsidy....goes to government coffers...which can be spent on things like education, health, and so on

2.More refineries, as people go into rrefining fuel at home , instead of wasting money importing the stuff....more revenue, more jobs

3.More investment in refinereis....from foreign investors.

4.NNPC finally has the money to spend on its refinereis...instead of spending money keeping the price of fuel low.


Yes, fuel cost N87 UDER gej DOWN FROM 97....and it was kept that low...at the expense of our foreign reserves. And GEJ ended up owing many marketers, money that was not fully paid off till 2018...because subsuidy is that hard to pay off. AND EVEN THEN./..marketers still were selling the fuel above the market price.

All I know is, in 2012...if the government then had been allowed to remove subsidy....we would have been in a much better place.

But everyone preffered cheap fuel. SEE THE COST OF CHEAP FUEL....we import fuel and we import fuel


Niger sells us fuel. They have no subsidy. Fuel cost N350 there...and they have the money and the profit to fix their refinereis...as a result.

Mheen

Hope Nigerians are ready for the next devil, sorry level.

An expected effect of subsidy removal...

The refineries they failed to provide giving excuses as usual. Not reality is staring us in the face.Finally, more of the next level suffering.The effects of subsidy or the so called subsidy under-recovery are here for real.

Buhari has been the minister of petroleum since 2015.He told Nigerians lie that the local refineries were working in full capacity upon his resumption of office in 2015.Nigerians got to know that despite billions of dollars pumped into the turnaround maintenance of the refineries nothing has been done.Now he is looking for how to extort money from Nigerians.Even God that deposited the crude oil in the Niger Delta soil,he didn't charge Nigerians one kobo.How come Buhari who does not own the oil is now overcharging Nigerians?God go punished am.

Bornu1stSon:
We were seriously praying that Price of Oil will rise from 40 dollars per barrel to 100 dollars as Bulhari has been complaining that fall in oil price led to his inability to build economy. We prayed day and night not knowing that we were seriously praying for more hardship.

Please God forgive our foolishness and make oil to be 10 dollar per barrel make it useless world wide so that my useless can enjoy what they have in abundance for once.

My brother, oil is even becoming irrelevant gradually, renewable energy is the way now and soon ,some countries go dey drink dia oyel ooo

Bornu1stSon:
We were seriously praying that Price of Oil will rise from 40 dollars per barrel to 100 dollars as Bulhari has been complaining that fall in oil price led to his inability to build economy. We prayed day and night not knowing that we were seriously praying for more hardship.

Please God forgive our foolishness and make oil to be 10 dollar per barrel make it useless world wide so that my useless can enjoy what they have in abundance for once.

If oil drops to $10 as you pray, the forex scarcity the country would face would be unprecedented. When that excruciating forex crisis comes, Naira will drop to N1000/$ and that would in turn increase the cost of importing fuel. In effect, pump price will still rise.

YourMajesty:
Nothing is working under this lifeless Buhari administration.

One begins to wonder if it's not the same old blood tasty fool that attacked GEJ when a litre was sold at N87.

It shall never be well with people who brought in this failure and calamity into power just because of their selfish interest and sentiments.

GEJ sold fuel at N65 in 2010, raised it to N140 in 2012, then brought it down to N97 in 2012, then N87 in 2015.

At the time, the landing cost of fuel was N99 IN 2012, and it went up to N132 in 2015

At the end of the day,GEJ spent biillions of Naira on fuel subsidy, which outside the cities of Abuja and Lagos had ceased to exist by 2013...fuel was retailing for above N100 in many cities across the country....because it was becoming difficult to sustain financialy

In 2012, gej raised fuel from N65 to N140...so that subsidy could end, and so that investment could pour into the country..so that we could have new refienreis, and so that NNPC oculd have the funds to fix refinereis.

Nigerians protested, GEJ cut the price to N97....and the money that could have been saved, and the profits that could have been ivnested in new refinereis was spent on sustaining an unsustainable subsidy


And you want Buhari to repeat the same mistake...or rather to worsen a mistake he is already making by subsidising fuel to N87 or to his mythincal N40 since you guys love cheap fuel too much.

obailala:
If oil drops to $10 as you pray, the forex scarcity the country would face would be unprecedented. When that excruciating forex crisis comes, Naira will drop to N1000/$ and that would in turn increase the cost of importing fuel. In effect, pump price will still rise.

Na una dey Abuja dey calculate nonsense in other to steal.

This useless government of Buhari

I hope Nigerians don dey get sense
small small against 2023.

Dont sell your votes
forget APC and PDP in the next general
election if you no wan suffer more.

obailala:
If oil drops to $10 as you pray, the forex scarcity the country would face would be unprecedented. When that excruciating forex crisis comes, Naira will drop to N1000/$ and that would in turn increase the cost of importing fuel. In effect, pump price will still rise.

Everything boils down to failure of the government to implement the plan it had from the beginning.The residual refineries were not revamped as nor the new ones built as promised while they continue to loot while quiet claiming the subsidy they denounced as a fraud.

NNPC continued to be a huge source of economic wastage despite huge TAM, overhead costs etc while operating @ zero-capacity.Privitize the NNPC they said no.

Pass the PIB to regulate the downstream sector & open up the competitiveness they refused.Now global oil price continue to fluctuates.This is happening under the supervision of the president-the minster of petroleum.

Buhari has successfully destroy Nigeria...

You see this buhari eh.....

Still in the business of doing what he knows best-...Causing hardship for Nigerians

Racoon:

Everything boils down to failing in the government to implement the plan it had from the beginning.The residual refineries were not revamped as nor the new ones built as promised while they continue to loot while quiet claiming the subsidy they denounced as a fraud.

NNPC continued to be a huge source of economic wastage despite huge TAM, overhead costs etc while operating @ zero-capacity.This as under the supervision of the president-the minster of petroleum.

The refineries were not revamped because NNPC was spending the money it should have used for the revamping on subsidy....

Plus,let's assume they repaired the refineries. At the end of the day, fuel will still be sold below the produiction cost in the name of subsidy. Where is NNPC going to get the money to keep on upgrading and maintaining the refineries.

Therein lies the problem.

All I know is, you guys should have allowed the complete removal of subsidy in 2012. You didin't...and now here we are.

When Dangote comes on stream, the fact remains that subsidy should go...or that new refienry will end up collapsing because it ain't profitable.

this will course hardship on Nigeria because items like food are already costs and the new policy on increment will course big rise of many food stuff.O Lord what next level is these.

Harddiskng:
Lool

Nigerians have not seen anything, lets Dangote finish building his refinery first.

And once it is finished, you guys should allow him to set the price of fuel he wants to sell it at.

Because if you don't, he won't earn the profits needed to keep that refinery running well.

Vardanes2:
The fun part of this thread is that most people will rightly blame the government, but then will come and ask the government to worsen the situation by spending more on subsidy. That means that we continue to throw more of the money we could have used to maintain and repair and upgrade refienreis on subsidy

To say nothing of the fact that we would end up spending more money on makrketers who will smuggle the fuel out of the country to sell at higher prices, and make their profit.


Here is a harsh truth. SUBSIDY HAS TO GO.

I'll repeat it again SUBSIDY HAS TO GO.


Yes, we would spend more on fuel. Yes, we would find things harsh for some time, and yes, I agree with you that APC is not the best form og governance either (I've never voted for them self...)


But, eventually

1.More savings from the money we spent on suibsidy....goes to government coffers...which can be spent on things like education, health, and so on

2.More refineries, as people go into rrefining fuel at home , instead of wasting money importing the stuff....more revenue, more jobs

3.More investment in refinereis....from foreign investors.

4.NNPC finally has the money to spend on its refinereis...instead of spending money keeping the price of fuel low.


Yes, fuel cost N87 UDER gej DOWN FROM 97....and it was kept that low...at the expense of our foreign reserves. And GEJ ended up owing many marketers, money that was not fully paid off till 2018...because subsuidy is that hard to pay off. AND EVEN THEN./..marketers still were selling the fuel above the market price.

All I know is, in 2012...if the government then had been allowed to remove subsidy....we would have been in a much better place.

But everyone preffered cheap fuel. SEE THE COST OF CHEAP FUEL....we import fuel and we import fuel


Niger sells us fuel. They have no subsidy. Fuel cost N350 there...and they have the money and the profit to fix their refinereis...as a result.

The bolded spoilt everything you wrote. Canadian government or Nigerian government? The people don't deserve to suffer for savings that would be embezzled. Borrow to fix the refineries, if you must...let investors come in and build refineries. Once the refineries are already in place and we are able to locally refine all the fuel we need, there won't be need for subsidy.

but oga at the top denied the existence of subsidy nah