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Businessday: Petrol To Cost N97 A Litre With Subsidy Off - Politics - Nairaland

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A Litre Of Petrol Now Sells Below N145 In Some Stations — Vanguard / Nigeria Set To Fully Deregulate Downstream, Petrol To Sell For Over N100 A Litre / The Subsidy Question: Fuel Will Sell For N40 A Litre - vanguard (2) (3) (4)

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Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Adesiji77: 6:22pm On Dec 14, 2015
Petrol will retail at about N97 per litre if the subsidy is removed today, going by the current landing price of between N77 – N79 per litre, in addition to transport to pumphead, marketers and other margins for about N18. With that, queues will disappear from the fuel stations.

“Nigeria can no longer afford subsidy. All indications are that crude oil is going to slide lower next year. The best time to remove the subsidy is when crude oil price is low because we cannot afford to do that when crude oil price is $100 per barrel. This is the best time to remove subsidy”, said Sena Anthony, former executive director, legal, Nigerian National Petroleum Corporation (NNPC).

“When the price is right, refineries will spring up and competition sets in. Remember how much we used to pay for GSM lines and today, the telecom companies are begging us to take their lines free. Money that should be used to pay salaries and develop infrastructure is being used for subsidy. It is a difficult pill but all of us just have to face it”, Anthony added.

While the timing is adjudged right for removal of subsidy, analysts say government should put some palliatives in place for the subsidy to go.

“Government should show the people tangible impacts of subsidy removal right from the onset, not many months later. The populace should immediately identify the benefits of subsidy removal as soon as the subsidy is removed, or even prior; be it free education, improved transport system, wage increase or social allowance for the unemployed. Subsidy reforms rarely work without an immediately tangible exchange”, said Chijioke Mama, a senior research analyst and founder of Energy Policy & Investment Advisory Initiative, Africa’s Barrel Equations.

Adding to the urgency to eliminate wasteful and inefficient spending, are the mounting fiscal pressures for Nigeria whose currency and budget will come even under more pressure as crude oil prices hit fresh seven-year lows on Friday.

Oil fell as the International Energy Agency (IEA) warned that global oversupply could worsen in the new year.

Brent slipped below $39 per barrel for the first time since December 2008 as the IEA, which advises developed nations on energy, warned that demand growth was starting to slow.

Nigerian policy makers have ignored the ticking time-bomb of fuel subsidy costs which has continued to grow exponentially, even as the country receives less revenue from oil sales.

This growth in subsidy payments is partly due to the rising cost of imported fuel, which meant that the government had to spend even more to keep domestic prices low, and also due to Nigeria’s increasing population, which resulted in increased fuel consumption; together these pressures made the cost of the fuel subsidy unsustainable.

In 2011 alone, Nigeria’s fuel subsidy cost the country an estimated $8 billion. It cost another $4 billion in 2012 and an average of $5 billion a year between 2012 and 2015.

The price of crude oil increased from $30.4 per barrel in 2000 to $94.9 in 2010 over the same period Nigeria’s population increased from about 123 million to 158 million.

By 2011, the fuel subsidy accounted for 30 percent of the Nigerian government’s expenditure and it was about 4 percent of GDP and 118 percent of the capital budget.

Nigeria’s fuel subsidy continues to crowd out other development spending. By comparison, the country’s total allocation for education is about $2.2 billion a year and it is not much higher for health care. Infant mortality in Nigeria remains unacceptably high at 90.4 per 1,000 live births. In 2004, it was estimated that only 15 percent of the country’s roads were paved.

The estimated $44 billion spent on fuel subsidy from 2000 till 2015 could help to address some of these issues. A single track railway line with simple signalling, costs about S$ 2 million per kilometre including electrical and mechanical equipment, according to data from Railway technical. The $44 billion spent on subsidy could have been used to construct about 22,000 km of railway tracks for freight and passengers in Nigeria.

In addition, keeping the domestic price of oil artificially low with the fuel subsidy has discouraged additional investment in Nigeria’s oil sector. This is especially problematic, given that the oil sector is the lifeblood of the Nigerian economy. Since 2000, Nigeria has issued at least 20 refinery licenses to private companies.

However, not one refinery has been built because investors could not recoup their investment under the artificially low price structure.

With the government subsidising the market to keep domestic fuel prices artificially low, it is those who consume the most that have a greater benefit from the subsidy. Nigeria’s poor rely primarily on public transportation, as such their per capita fuel consumption is significantly less than the country’s rich, who generally use private vehicles. Neighbouring countries also benefit significantly from Nigeria’s fuel subsidy through smuggling.
http://businessdayonline.com/2015/12/petrol-to-cost-n97a-litre-with-subsidy-off/

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Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by hinohsend: 6:27pm On Dec 14, 2015
Bubu would find a way to mess this chance up.

1 Like

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Nobody: 6:28pm On Dec 14, 2015
Great
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by 20bc(m): 6:30pm On Dec 14, 2015
OK that's good....
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by geesilver(m): 6:32pm On Dec 14, 2015
If implemented its a great news............
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by GreatEngineer(m): 6:32pm On Dec 14, 2015
This is just the best time to do this without any issue.
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by PassingShot(m): 6:33pm On Dec 14, 2015
This will be great news if it comes to pass.

1 Like

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Pavore9: 6:33pm On Dec 14, 2015
Very insightful.
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by apholaryn: 6:34pm On Dec 14, 2015
nice
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Ayoemrys(m): 6:36pm On Dec 14, 2015
anyway if that will be the case,(in fayose voice)oya buhari come here,remove the subsidy kia kia,
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by crispberry(f): 6:38pm On Dec 14, 2015
Good.
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Nobody: 6:38pm On Dec 14, 2015
I know nothing about subsidy- Buhari

Who f9 for maths don help?
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by chudionu58(f): 7:03pm On Dec 14, 2015
PassingShot:
This will be great news if it comes to pass.
Fool, but you opposed Jonathan when he did it! True or false?
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Bevista: 7:35pm On Dec 14, 2015
That does not tell the whole story. What if Crude rallies back to $70, will Nigerians be able to pay N160/ltr on a consistent basis?
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Nobody: 7:38pm On Dec 14, 2015
chudionu58:
Fool, but you opposed Jonathan when he did it! True or false?
When we opposed GEJ, it waa because we didn't trust his government. And in tge end, we were proven right.
Even the funds generated from partial subsidy were embezzled like no mam's business.

2 Likes

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Sweetguy25: 7:40pm On Dec 14, 2015
Interesting.. So why is diesel selling for 150 plus then? Please tell another lie Mr man.
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by chudionu58(f): 8:26pm On Dec 14, 2015
sonOfLucifer:

When we opposed GEJ, it waa because we didn't trust his government. And in tge end, we were proven right.
Even the funds generated from partial subsidy were embezzled like no mam's business.
Shut up joor! All because of hate, you couldn't allow a good policy fly, how are you proven right?
http://newsnownigeria.com.ng/graduate-internship-scheme-stays-fg/
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by datola: 9:12pm On Dec 14, 2015
The devilish subsidy should be removed sharp sharp!

3 Likes

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by disloman(m): 9:18pm On Dec 14, 2015
I told people to expect subsidy to be removed next year January 1 and NNPC will be the sole importer of the product.Minister of finance also made known that we should expect some tough policies.Nigeria will be great once again.

2 Likes

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by disloman(m): 9:21pm On Dec 14, 2015
chudionu58:
Shut up joor! All because of hate, you couldn't allow a good policy fly, how are you proven right?
http://newsnownigeria.com.ng/graduate-internship-scheme-stays-fg/
That was the gospel truth.People don't trust the government then and the way we want to go about it wasn't well presented to the populaces.

1 Like

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by disloman(m): 9:23pm On Dec 14, 2015
Sweetguy25:
Interesting.. So why is diesel selling for 150 plus then? Please tell another lie Mr man.
Why are you people so stup-d and dumb?Nowhere diesel been sold 150 plus.The price range is between 110-125naira per litre.So bro!Sit your arse somewhere.

1 Like

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by chudionu58(f): 10:06pm On Dec 14, 2015
disloman:
Why are you people so stup-d and dumb?Nowhere diesel been sold 150 plus.The price range is between 110-125naira per litre.So bro!Sit your arse somewhere.
Lool! sudden believer in subsidy removal, all in a bid to provide soft landing for the APC!
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by chudionu58(f): 10:12pm On Dec 14, 2015
disloman:
That was the gospel truth.People don't trust the government then and the way we want to go about it wasn't well presented to the populaces.
Simply accept that a combination of tribal hate and political deceit made majority of you guys to reject the novel idea! Here you are readily accepting "subsidy removal" without engaging the later day saints on the details of the removal! Mtchew! One Nigeria my foot!!
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Yello1(m): 10:34pm On Dec 14, 2015
Wen subsidy dey self we dey buy am 130,until we see d reality anyway. We don tired 4 political lies
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by porka: 10:50pm On Dec 14, 2015
Did you people not say subsidy was a scam?

Didn't you say it does not exist?

Why remove something that doesn't exist?

Where are those 'oil mathematicians' who know the refining and landing costs of petrol in all the 196 countries of the world?

Where are the emergency petrol marketers who told us that fuel should be sold for exactly N40 or below in Nigeria?
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by disloman(m): 11:42pm On Dec 14, 2015
chudionu58:
Simply accept that a combination of tribal hate and political deceit made majority of you guys to reject the novel idea! Here you are readily accepting "subsidy removal" without engaging the later day saints on the details of the removal! Mtchew! One Nigeria my foot!!
I don't word with blocked-head.Please stare off my lane.Eran.

2 Likes

Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Mboi: 6:22am On Dec 15, 2015
sonOfLucifer:

When we opposed GEJ, it waa because we didn't trust his government. And in tge end, we were proven right.
Even the funds generated from partial subsidy were embezzled like no mam's business.
You are still a fool. Just like your master Buhari, you people did not know what subsidy was all about then.
Even now sef you never still know wetin subsidy mean that's why you said "trusting his govt".. Okpo!!
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by vb0mb(m): 6:34am On Dec 15, 2015
Federal government is just too unreasonable
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by fitzmayowa: 6:37am On Dec 15, 2015
porka:
Did you people not say subsidy was a scam?

Didn't you say it does not exist?

Why remove something that doesn't exist?

Where are those 'oil mathematicians' who know the refining and landing costs of petrol in all the 196 countries of the world?

Where are the emergency petrol marketers who told us that fuel should be sold for exactly N40 or below in Nigeria?


The same set of people that lead the protest against removal of fuel subsidy about 4years ago are the ones applauding it now, i wonder why some nigerians are so confused...

BTW i thought PMB said he doesn't know what subsidy is How come they are paying for the same "unknown" subsidy How come they are trying to remove it

Hypocrisy will never allow this country move forward, nigeria would have long forgot the issue of fuel subsidy if some selfish few didn't use the fuel subsidy for political gains, while playing on the intelligence of gullible nigerians...SMH
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by chudionu58(f): 6:48am On Dec 15, 2015
disloman:
I don't word with blocked-head.Please stare off my lane.Eran.
Tar! "ozu n'onye dogha mkpakara ute"... Mbaise adage.
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by ba7man(m): 7:15am On Dec 15, 2015
chudionu58:
Fool, but you opposed Jonathan when he did it! True or false?
Nobody trusted GEJ with the removal of the subsidy. He went about its implimentation is the sleaziest of manners and would have ended up looting the money saved.

What effects of sure-p have you felt in his 5yrs?
Re: Businessday: Petrol To Cost N97 A Litre With Subsidy Off by Iroh88(m): 7:53am On Dec 15, 2015
chudionu58:
Fool, but you opposed Jonathan when he did it! True or false?
That was because Jonathan ran a criminal enterprise he called a cabinet. Eventually, Christopher Kolade proved our suspicions right by throwing in the towel over what SURE-P was- a gargantuan FRAUD!

Get the difference?

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