₦airaland Forum

Islie:
https://thenationonlineng.net/full-deregulation-of-petrol-price-coming-says-fed-govt/

Praise the Lord!

This man still dey alive?! So we get minister of state for petroleum?

Then your satanic & callous govt should be ready to leave or incur the wrath of Allah Almighty. I regret voting for Buhari

Subsidybad21:
Well, I didn't claim to be the quantum of knowledge....



Well, NNPC has been subsidizing fuel..so by extension has been 'flooding the market with cheap fuel' so to speak

If they were to make the price cheaper...ie reduce it to N40, the amount they would have to pay as subsidy, especially as fuel costs N200 and above to import (per liter)....would nearly double and put pressure on our limited foreign reserves...driving us further into debt.

Besides fuel is very cheap here...most West African countries charge above N300 per liter for fuel...including oil producers like Niger, and Chad.(Which is why many marketers smuggle fuel to these countries to sell for a profit...one of many reasons why Buhari shut down the borders)

Also, we have been running a subsidy...ie paying an amount of money to the marketers and producers of oil in this country to keep prices of fuel below the price that would be profitable for them...for decades...since at least the 1990's....which is one of the reasons why we don't have functioning refineries. The subsidy we pay does not adequately cover the losses made...which is why you have all sorts of sharp practices like smuggling, over invoicing the government, scarcity, black marketeering, and so on.

When you spend 4 trillion naira in 5 years subsiding fuel from NNPC 's coffers (which is what it costed the government between 2010-15)...and even more than that since then....NNPC won't be in a financial state to build new refineries, or properly maintain existing ones.

Note that a subsidy works by the government telling the petroleum industry to charge less than the actual cost of refining the fuel, while the government pays them what would cover the resulting loss. Usually it is not enough, and because the source of the money is not from taxes (as seen in Canada, for example) but from oil money (usually limited due to rising and falling oil prices)...the industry runs at a loss. At the end of the day, refienreis fail quite simply because it is no longer profitable to run them. Saboteurs and thieves have a field day raiding the carcasses left.

If there had been no subsidy, and prices had been set by the marketers, there would have been enough profit to pay for refineries maintenance and upgrades...and new refineries.



True.

You are contradicting yourself! It shows you don't even understand what I wrote.

Subsidy payment is different from selling cheap. They are not the same.

Nothing stops NNPC from selling 150 Naira if others are selling at 200 Naira.

Racoon:
PIB is still lying fallow because it will liberate the industry and unbundle the corruption therein.Same policy the former government wanted to carry out yet they demonized it for no good reason. By now Nigeria would have long stabilized from the aftermath effects with the worsening oil prices @ present. Bunch of evil, wicked and satanic hypocrites.

it's nice to experience buhari because we didn't understand Jonathan then.

Let move on

PHijo:
You are contradicting yourself! It shows you don't even understand what I wrote.

Subsidy payment is different from selling cheap. They are not the same.

Nothing stops NNPC from selling 150 Naira if others are selling at 200 Naira.

I see what you mean.

Still, it may not be easy for NNPC to sell at a lower price. It does need the money to fix refineries.

Dotherightthing:
If only we had allowed GEJ's attempt at full subsidy removal in 2012 to stand!

Today, we would have completely forgotten about subsidy, government would have had more money, the Naira would have remained at 168 or less against the dollar, modular refineries would have sprung up all over the place, pump price may have dropped to less than NGN100, massive job creation would have happened etc etc

Unfortunately, some irredeemably dummb Nigerians forced GEJ to change his policy.

And the spineless GEJ too gave in!!

Now, deregulation would have to happen under Buhari and it's going to be more painful.

When GEJ removed subsidy, the pump price became N141. Crude oil price in the world market was around USD100. It could not get worse.

If Buhari removes subsidy, the pump price will become N216. Crude oil price in world market is around USD70. It may get worse.

So you see, Nigerians have been pennywise pound foolish...

The problem with Jonathan was not really about the price but the degree of mass looting of public funds. Unfortunately, we have entered one chance with these same set of hoodlums waving a different flag with a somewhat more radical ideology of corruption and ethnocentrism

FalseProphet1:
I see Nigeria dividing because of this fuel issue. Northern and Southern Nigeria, I see southern Nigeria progressing and becoming like Europe, I see whites and other Nationals struggling to get southern Nigeria visas, I see fuel selling for N40 per liter in Southern Nigeria. This I have seen.

Legend of the seeker. Congratulations

Racoon:
PIB is still lying fallow because it will liberate the industry and unbundle the corruption therein.Same policy the former government wanted to carry out yet they demonized it for no good reason. By now Nigeria would have long stabilized from the aftermath effects with the worsening oil prices @ present. Bunch of evil, wicked and satanic hypocrites.

Well, I have had a look at the KPMG summary of the PIB

On pricing of petrol, which is the key aspect of this thread..

One of the functions of the NPRC is to establish the framework for computing the fair market value of petroleum products and tariffs for gas processing and transportation. This seems to suggest that Government may be unwilling to deregulate the downstream sector of the petroleum industry. Furthermore, the implication of this for Automotive Gas Oil (Diesel), which has been deregulated, is unclear(see page 3)

PIB has a lot of good ideas, but it does not provide for deregulation and removal of subsidy.

GEJ, like most Nigerian leaders before and after him do not want to deregulate totally because of the political fallout. Same for Buhari. Instead, they reduce the amount spent on subsidy, which manifests as an increase in prices....

brownlolly:
The problem with Jonathan was not really about the price but the degree of mass looting of public funds. Unfortunately, we have entered one chance with these same set of hoodlums waving a different flag with a somewhat more radical ideology of corruption and ethnocentrism

You were either a child then or a ethnic bigot! That's what sums up the rubbish you typed here.

PHijo:
You were either a child then or a ethnic bigot! That's what sums up the rubbish you typed here.

I started voting since the 2011 elections. Before that time, I was already following politics in 1996 when Col. Buba Marwa was military administrator of Lagos State. I hope you were born at that time.

bixton:
The Nigerian Government does not have any legitimate claim to deregulate the price or the petroleum sector when they can't create an enabling environment or even put in check market forces of such.
All they try to do is put up some shady half concocted statement to bamboozle people.
Since 1999 till date the nation's refinery cannot refine her crude oil to meet demands.
Since 1999 till date the nation cannot build new refineries.
Since the Nigerian government has failed why can't they allow those boys who are into illegal bunkering in the bushes to put up modular refineries within acceptable conditions and policies guiding them to meet demands in their regions!!!!!

China buys crude oil and refines it to meet her demands for economic growth. What have we learnt from them all these years!!!!

What's the land mass of the UAE compared to the that of Nigeria and her fictitious population statistics. What have we also learnt from such the UAE system.

Before the fall of Libya, how was the petroleum sector there.....what have we learnt also from there.....

Why can't we do what is typical to our environment that will solve the peculiar issues we have rather than doing what bring more hardship on the masses.

Exactly!

This same administration promised since 2015 to not only fix the ever funding consuming refineries but build new ones!
What does it really take to build new refineries or repair the old ones? Can't they take loans to repair or build refineries?
What has so far happened to the modular refineries that have been commissioned so far?
Why are they not operational?

Dooms sayer.

brownlolly:
I started voting since the 2011 elections. Before that time, I was already following politics in 1996 when Col. Buba Marwa was military administrator of Lagos State. I hope you were born at that time.

If bigotry is not your problem then unbridled ignorance and stupidity was.

Buhari has proven himself to be the biggest bigot in Nigeria's history and has not been transparent as Nigeria's petroleum minister yet you trust him over a man that told you subsidy cost Nigeria a lot.

In 5 years Buhari has borrowed 20 trillion with barely anything to show for it.

The same Buhari who claimed Nigeria paid no subsidy has been paying subsidy as petroleum minister since 2015.

You don't like Jonathan because doesn't come neck of the wood, we understand that, stop hiding behind lies.

My question is what happened to the about 450k barrels of crude oil daily production allocated for local consumption? These 450k barrels are not part of the 1.9 million barrels OPEC quota approved for exportation. Nigerians think deep!

PHijo:
If bigotry is not your problem then unbridled ignorance and stupidity was.

Buhari has proven himself to be the biggest bigot in Nigeria's history and has not been transparent as Nigeria's petroleum minister yet you trust him over a man that told you subsidy cost Nigeria a lot.

In 5 years Buhari has borrowed 20 trillion with barely anything to show for it.

The same Buhari who claimed Nigeria paid no subsidy has been paying subsidy as petroleum minister since 2015.

You don't like Jonathan because doesn't come neck of the wood, we understand that, stop hiding behind lies.

I don't think you read my post. If you did, I don't think you are well educated. And if you are educated, your mind has been either been programmed to react without reason at the mention of the name Jonathan, or you are just as slow as Buhari.

brownlolly:
I don't think you read my post. If you did, I don't think you are well educated. And if you are educated, your mind has been either been programmed to react without reason at the mention of the name Jonathan, or you are just as slow as Buhari.

You want to throw English words around without understanding basic English. You said the current government is " somewhat more ethnocentric and radical ".

When you use the term more, it means you are quantifying the adjective, ethnocentric and radical.

If you choose a more ethnocentric person and you trust him enough to handle subsidy removal then you are a bigot.

The issue of subsidy removal should never have been an ethnic or religious issue but a financial issue for the country but bigots and political opportunists like you chose to sabotage the country on the alter religious radicalism and ethnic bigotry.

PHijo:
You want to throw English words around without understanding basic English. You said the current government is " somewhat more ethnocentric and radical ".

When you use the term more, it means you are quantifying the adjective, ethnocentric and radical.

If you choose a more ethnocentric person and you trust him enough to handle subsidy removal then you are a bigot.

The issue of subsidy removal should never have been an ethnic or religious issue but a financial issue for the country but bigots and political opportunists like you chose to sabotage the country on the alter religious radicalism and ethnic bigotry.

I said "unfortunately we have entered one chance". Did you not read that? Did you actually read what I wrote?

Subsidybad21:
I see what you mean.

Still, it may not be easy for NNPC to sell at a lower price. It does need the money to fix refineries.

NNPC does not need to fix the refineries!

Transfer her debt to AMCON and sell it to the host communities for a symbolic 1 Naira. Let them figure out how they will repair it. NNPC ( 'Federal' Government of Nigeria) has no business in the oil sector, mostly the downstream sector.
That $1.5 billion will be of better use to the state if channelled to critical sectors.

NNPC can import periodically, when is a need to pressure other players to sell cheap or they can have a strategic reserve for that purpose.

The problem is your leaders in Nigeria don't think and many of you encourage them not to!