₦airaland Forum

Will it stop them from singing "oil was sold 140$ in PDP era but now oil is selling for 30$"

ok

We Are To Pay The Price

Jerryherd:





Biden and Democrats are intelligent, they understand crude oil economics unlike the orange buffoon called Trump that flooded the market with crude oil making it almost worthless, opposing every move of OPEC

If not for corruption, Nigerian's excess crude account and foreign reserves should increase



.

I don't like the orange buffon, but it wasn't his fault that the oil flood started..it started under Obama..2014 was the year oil started falling due to the Saudis pumping more oil to force the US oil companies out of business...pity they took the market down with them

Mynd44:
Petrol prices to rise, oil companies to smile, the Nigerian government gets some financial reprieve, that coectng derivation funds too to smile.

Well... rise in global oil prices reflects in higher pump prices in Nigeria.

Drop in the same index = higher pump prices.

So sadly, nothing good comes out of increase or decrease.

How nice could it be; if the proceeds from this can be channel appropriately for the betterment of all.

Kebbiprince:
Yet only the politicians will benefit leaving out the citizens.
Funny enough the budget was made with oil price at 40$°.just wait and see how the excess of 30$ will be stolen

you know them
.The government of blaming

Godarz:
It is a better option than spending billions on subsidisng fuel, and getting into more debt doing so.

What is subsidy??

It’s really painful that the fate of a nation of over 200m people rests on the shoulders of ONE man and his refinery project . Damn?!

Godarz:
Won't benefit us

1.We still have to pay off the debts incurred when oil prices were lower than $50 and below....

2.Also, the oil price isn't up to our breakeven price...the price at which we can earn enough to maintain a balanced budget. For Nigeria it is $133 dollars.

3.That's why your government has to diversify, and also save money by ending payment of saubsides and such

You're funny

your prophecy is correct

Godarz:
Won't benefit us

1.We still have to pay off the debts incurred when oil prices were lower than $50 and below....

2.Also, the oil price isn't up to our breakeven price...the price at which we can earn enough to maintain a balanced budget. For Nigeria it is $133 dollars.

3.That's why your government has to diversify, and also save money by ending payment of saubsides and such

please how did you come to $133 as our break even price.
Pls I go like learn am.

fastseo:
Will it stop them from singing "oil was sold 140$ in PDP era but now oil is selling for 30$"

Never

lilvicky68:
Even if it hits 100$ per barrel..them go still dey borrow money from other countries..wicked politicians

Well, yes, they are wicked and also very dumb and clueless.

INTEGRITYA1:
That's beautiful

nothing is really beautiful cause, rise in oil price would lead to rise in pump price. Except if the government decides to subsidise it

Amaechi2023:
please how did you come to $133 as our break even price.
Pls I go like learn am.

From this article: Nigeria Prepares For An Extended Period Of Low Oil Prices (google for it...having diffiuclty posting link)

Excerpt....

After the OPEC+ deal began in May, Fitch Ratings said that Nigeria’s participation in the deal would result in “deeper economic contraction and fiscal deficits and compound pressures on external finances from the slump in oil prices.”

Nigeria’s fiscal breakeven oil price – the price of oil at which Nigeria balances its budget – is very high, at US$133 per barrel, given remarkably low non-oil fiscal intakes, Fitch has estimated.

According to the World Bank’s latest update on Nigeria from June 2020, the collapse in oil prices coupled with the pandemic are expected to plunge the Nigerian economy into the most severe recession in four decades—the worst since the 1980s.

salbis:
What is subsidy??

IN 2012, it ocst N99 to import one liter of fuel into Nigeria. The cost at the pump was N97. Government paid a subsidy of N2 per liter at the time...

The subsidy is what government pays as 'compensaiton' for the losses made by market in selling fuel below the cost price...and in the past, when we had working refienreis, the loss incurred selling fuel below the production cost.

Problem is, costs in business rise. By 2015...IT COST N132 to bring in one liter of fuel...and it was being sold at N87....meaning subsidy had risen to 55 NAIRA PER LITER...from 2 naira per liter 4 years earlier.

Not only that, subsidy does not adequately cover all costs. It also prevents investment from abroad...who wants to comne and sell fuel at a controleld price.?

Jerryherd:





Biden and Democrats are intelligent, they understand crude oil economics unlike the orange buffoon called Trump that flooded the market with crude oil making it almost worthless, opposing every move of OPEC

If not for corruption, Nigerian's excess crude account and foreign reserves should increase



.

Lol. You think higher oil prices favour America?
America wants lower oil prices. Biden and Dems are actually the opposite of what you claim while Trump is actually the smart one who kept oil prices low by engaging the Saudis positively and promising them weapons and Iranian blockade.
The mumu that blamed the crown Prince for the death of khashoggi can now see the reason why Trump abstained from that mess.

Jerryherd:





Biden and Democrats are intelligent, they understand crude oil economics unlike the orange buffoon called Trump that flooded the market with crude oil making it almost worthless, opposing every move of OPEC

If not for corruption, Nigerian's excess crude account and foreign reserves should increase



.

What does Trump or America have to do with OPEC? Try and educate yourself

Agbegbaorogboye:
Lol. You think higher oil prices favour America?
America wants lower oil prices. Biden and Dems are actually the opposite of what you claim while Trump is actually the smart one who kept oil prices low by engaging the Saudis positively and promising them weapons and Iranian blockade.
The mumu that blamed the crown Prince for the death of khashoggi can now see the reason why Trump abstained from that mess.

The guy does not know what he is talking about. Imagine calling Trump and Biden. Just wants to be noticed

Godarz:
Won't benefit us

1.We still have to pay off the debts incurred when oil prices were lower than $50 and below....

2.Also, the oil price isn't up to our breakeven price...the price at which we can earn enough to maintain a balanced budget. For Nigeria it is $133 dollars.

3.That's why your government has to diversify, and also save money by ending payment of saubsides and such

What exactly is a balanced budget? How does it help us? What is break even price?
Do you mean if oil prices had not gone up we wouldn't have paid our debts and is there any law that says any excess crude money must be used to pay debt?

afroxyz:
The guy does not know what he is talking about. Imagine calling Trump and Biden. Just wants to be noticed

When you're on fp. You have to try to sound intelligent no matter how difficult.

Chai

That means Fuel pump price go soon reach like 250 per liter.

Agbegbaorogboye:
What exactly is a balanced budget? How does it help us? What is break even price?
Do you mean if oil prices had not gone up we wouldn't have paid our debts and is there any law that says any excess crude money must be used to pay debt?

Corden and Neary (1982) have demonstrated how Dutch disease occurs in an economy. According to them, in a country experiencing "boom" in the export of a commodity, the economy can be divided into three sectors: the "booming" export sector, the "lagging' traditional export sector and the non-export sector. The Dutch disease occurs when the traditional export (tradable goods) sector is crowded out by the booming export sector and the non-tradable goods sector. The lagging traditional tradable goods sector may include cocoa, palm produce, cotton, rubber, coal, copper, textiles and some manufactured goods while the booming export sector may be crude oil, coffee, gold, etc.

The non-tradable (non-export) goods sector covers all those goods that are produced for domestic consumption only, e.g. staple food items, clothing, building materials, locally-assembled cars. Where crude oil (and gas) is the booming export sector, the non-oil export sector may be crowded out by the oil sector and the non-tradable goods sector of the economy. This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms.

The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors.

With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports.

The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky.

Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty

SAUCE

Nigeria’s fiscal breakeven oil price – the price of oil at which Nigeria balances its budget – is very high, at US$133 per barrel, given remarkably low non-oil fiscal intakes, Fitch has estimated

SAUCE:Nigeria Prepares For An Extended Period Of Low Oil Price by Tsvetana Paraskova



N.B: That's why I don't support PDP or APC. They have no plans to diversify us away from oil, and we keep on going through this cycle over and over again.We were here in 1982-2005/6.

Racoon:
https://www.vanguardngr.com/2021/03/breaking-oil-price-hits-71-28-on-opec-decision/amp/

Awoof money loading

When are we ever going to have a leader that will have it's citizens at heart.

What will it cost Nigeria government to restructure our refineries?

We are among the top 6 largest producers of oil, but yet citizens still suffer due to the high cost.

Who has done this to Nigerian?

Godarz:
SAUCE



SAUCE:Nigeria Prepares For An Extended Period Of Low Oil Price by Tsvetana Paraskova



N.B: That's why I don't support PDP or APC. They have no plans to diversify us away from oil, and we keep on going through this cycle over and over again.We were here in 1982-2005/6.

You have not answered any of my questions with your long quote. You should have seen "remarkably low non-oil intakes after the so-called breakeven price. Coupled with the fact that budgets are not even static, it's obvious the so-called breakeven price is not static as well.

Maybe you can attend to the others now.

Rebuke:
Hmmmm. It's all about them and we all know it.

We can only just be happy for them but the masses might not benefit from it.

I bought fuel at 170 per litre over the weekend. Some are even selling above that.

They are making more profits in the international market which should ordinary help reduce the price for it here but na, we are still paying more.


Whatever magic the PDP did that saw us buying fuel between N80 - 90 must be a very good one.

Just don't come to tell me how high crude oil was during their tenor. They obviously had more right thinking individual than these present dumb and clueless administration.

Everything is on the rise. Imagine common salt that was always low in price no matter what, now has also risen in price under this present government....just to tell yhu how terrible APC is doing.

Tell me one item or food products that have not increased in price under Buhari government.

.
Do you realize that before 1999 oil price was below 30 naira and prices of other goods were far cheaper

When Jonathan was in power. If oil prices go up it was good news, even downloaded an app for it now its bad new since bubu entered

Agbegbaorogboye:
You have not answered any of my questions with your long quote. You should have seen "remarkably low non-oil intakes after the so-called breakeven price. Coupled with the fact that budgets are not even static, it's obvious the so-called breakeven price is not static as well.

Maybe you can attend to the others now.

I have, but because you think wrongly of me, you don't want to see my answer.

So, read my post again, especially the long one. You will find the answers you seek...especially as your comment shows that you haven't read my post.

Team '100 Dollars during Jonathan's Regime" over to you. As the earnings gap fades the excuses for poor governance should as well. But typical there will be silence on the benefits and new excuses for the failures. We are waiting.

Reference:
Team '100 Dollars during Jonathan's Regime" over to you. As the earnings gap fades the excuses for poor governance should as well. But typical there will be silence on the benefits and new excuses for the failures. We are waiting.

No excuses for failure...but the fact is, when oil prices started falling down during GEJ's regime, Nigeria had to start taking loans to keep our nehad above water.

When the fall continued during Bubu's time, the loan taking continued.

Now that oil has gone up....the loans must be paid first.

As put by this article...Managing the dutch disease in Nigeria from 2004...

For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty.

Thus, there is a critique of why GEJ and Buhari are both bad....they DID not diversify us from oil. Buhari in partiuclar had a lot of cheap tools he could have used eg removing suibsides, and ending insecurity, and widening the tax base....which so far he hasn't used. Instead...it has been go back to agric...like it is the 1960's when the UK was our guaranteed market.

Godarz:
Won't benefit us

1.We still have to pay off the debts incurred when oil prices were lower than $50 and below....

2.Also, the oil price isn't up to our break even price...the price at which we can earn enough to maintain a balanced budget. For Nigeria it is $133 dollars.

3.That's why your government has to diversify, and also save money by ending payment of subsides and such

Excuses have started from government apologists to pound our minds into expecting nothing while they 'steal the silver'. Same ol, same ol propaganda. We all suffer and sacrifice but when benefits come they tell us another thing. Did we jointly agree to these loans, no. Have these bogus loans directly benefited us, no.