The minister of petroleum was very detailed in explaining on t.v that in six (6) months time, The market forces which made GSM to become cheap today will also be seen and felt in the price of fuel.

According to him; There would soon be competition amongst the marketers and that would amount to drastic reduction in price of fuel..

On paper, The minister was on point.

My economics textbook buttresses what the minister of petroleum was trying to explain.

But you see...Some things in Naija get to be beyond what is written in the book.

I mean, How can you explain the reality of every filling station all of a sudden, having fuel to sell?

Every fuel station is now open and the queues have disappeared.

I ask; What caused the queues in the first place. The answer is simple; ARTIFICIAL SCARCITY.

These fuel stations and their owners have a union and with this union, they can cause scarcity at will in the market in order to fix the price as they like.

So, seeing how powerful these marketers are in price-fixing, What are the odds that there is going to be an academic "market force" that would bring down the fuel price before december?

If you ask me, I will tell you that the odd is zero. I have one simple reason for my zero odd..

Was 145 Naira the official price that FG announced? No...What the FG said was simple;

"Every marketer can now source for funds and import fuel from anywhere, BUT NO MARKETER SHOULD SELL ABOVE 145 NAIRA....".

And Baaam!
All the marketers consequently and immediately, fixed their prices to 145 naira sharp sharp.
These are the kind of marketers we are dealing with.

Therefore,
Come december...
Come next year...
Come next decade...
Fuel price MAY never go below 145 naira..

Sorry to the poor masses !!!

written by Canice Dim

Its time for us to take our destiny into our hands, its time to rise against evil politicians blood suckers...

cuvox:
The minister of petroleum was very detailed in explaining on t.v that in six (6) months time, The market forces which made GSM to become cheap today will also be seen and felt in the price of fuel.

According to him; There would soon be competition amongst the marketers and that would amount to drastic reduction in price of fuel..

On paper, The minister was on point.

My economics textbook buttresses what the minister of petroleum was trying to explain.

But you see...Some things in Naija get to be beyond what is written in the book.

I mean, How can you explain the reality of every filling station all of a sudden, having fuel to sell?

Every fuel station is now open and the queues have disappeared.

I ask; What caused the queues in the first place. The answer is simple; ARTIFICIAL SCARCITY.

These fuel stations and their owners have a union and with this union, they can cause scarcity at will in the market in order to fix the price as they like.

So, seeing how powerful these marketers are in price-fixing, What are the odds that there is going to be an academic "market force" that would bring down the fuel price before december?

If you ask me, I will tell you that the odd is zero. I have one simple reason for my zero odd..

Was 145 Naira the official price that FG announced? No...What the FG said was simple;

"Every marketer can now source for funds and import fuel from anywhere, BUT NO MARKETER SHOULD SELL ABOVE 145 NAIRA....".

And Baaam!
All the marketers consequently and immediately, fixed their prices to 145 naira sharp sharp.
These are the kind of marketers we are dealing with.

Therefore,
Come december...
Come next year...
Come next decade...
Fuel price MAY never go below 145 naira..

Sorry to the poor masses !!!

written by Canice Dim

God bless you my brother, u just put my thoughts into writing. You can't say u want to allow market forces to come into place while u fix a price ceiling, in otherwords, no marketer will be faulted if he even sells at 140/litre. With the current exchange rate and restriction on FX, I foresee no reduction.

Its quite stupid to think the price of fuel will ever go down

-Militants will continue to bomb pipeline
-Our revenue from oil will decline
-we dont even have enough forex as it stands
-even at that there are still restriction on forex
-Subsidy has been removed
-fuel marketers will use black market rate to import petrol
-the exchange rate will continue its freefall path

How on earth will the price go down? Or is there some quantum economics principle i'm forgeting.

Our only hope will be locally refined PMS. But then we still have to worry about ND militants blowing things up like overgrown kids.

#000000

In the telecom industry there was competition between service providers, which brought down prices of their goods and services. Competition between marketers and distributors of telecom products didn't bring down the prices of anything. Prices of petroleum products will only go down if there is competition between local refiners. Producers determine the lower limit of prices of goods in the market not marketers, no marketer will sell below the price he buys. We already know the minimum and maximum price of PMS from the gov't templet. Now tell me which sane marketer would sell below the templet just because there is competition? Moreover the current price is based on the assumptions that: 1. The price of crude oil wouldn't change. If today the price of crude goes to say $45-50 this templet would be revised upwards. 2. Marketers are able to source enough forex at or below #298 to a 1$. If marketers can't source enough at the stipulated rates, they would not import. As long as we import the PMS prices would remain high. Gov't talks about new players in the industry, I hope they are referring to refiners and not importers, new importers will still buy and sell PMS at similar rates to existing ones. Finally I have some questions how much is PMS produced in Nigeria going to sell, because the templet we have is for imports. Would NNPC still import and if yes, which exchange rate would they use official(196) or interbank (285-298).