Sunnycliff:


So you don't no that if it still gets to that level, wee will still be buying almost #300 per litre when you factor in landing costs and profit margin for the entire value chain

Oil is not going to get to $100 per barrel. What happened in 2008, and again in 2011-14 was an aberration. Everyone is discovering oil, even in many African countries.

At the end of the day, if we want working refineries, and ending all this importation of fuel...we have to remove subsidy so that it becomes profitable to refine fuel at home, instead of one importing 50000 liters,then lying that they imported 100000 liters, and collecting free subsidy money .

High fuel price is a small price to pay.

Niger that we are importing fuel from pays N377 per liter for fuel. Meaning they earn enough profit to pay for their single 20000 barrel a day refinery they run in conjunction with the chinese.

Basicend:


But why continuous devaluation of Naira when govt knows that it's economy is import oriented. . Why looking for more dollars when the fools could have received or built up a new refining process.

Buhari is the worst president in the history of Nigeria and the distance is in milleage.

Who are his economic team? Doed he even know that an average Nigerian cannot even eat / afford 1 square meal now?

A bit of reading would help your ignorance. Yes, we are an import oriented economy. But how easy is it to conveniently forget we are still caught up in a pandemic, which has severally impacted our primary source of FOREX. Our OPEC quota is down to 1.52m barrels from a high of 2.2m. There is nothing the economic team can do about it.

Beancounter93:


Depends

1.Under GEJ, with higher prices for crude...we had more of a higher income, which we spent massively on keeping fuel cheap..which is part of why we had a depleted forex reserve by the time Bubu took over...which under Bubu fell by another 4 billion dollars...because keeping fuel cheap costs a lot (There is a reason why GEJ wanted to remove fuel subsidy, and the events of the last 8-10 years since the Occupy protesters forced his hands have proven him right).

2.Under Bubu, because of the very low oil prices we have had, there hasn't been much money to pay for subsides, therefore subsides got partially removed , and prices went up.

Also, because of the low crude prices, we have to take loans to meet up with demand for money in this country (Or Buhari raises taxes massively which is what the IMF loves, but the masses hate)

Once prices go up, we spend money paying back the loans we took first....meanwhile we have to take new loans because even with the rising oil prices, the price is not at what is considered our breakeven price (which varies from oil producer to oil producer. Nigeria has the highest at $133 per barrel...down from $139 in 2017, and $122 in 2012.)

Perils of being a resource dependent nation, and one reason why we have to remove subsidy...if we can do that, it means we save more money. Long term, Nigeria cannot rely on just oil.

You can always agree with me that proceeds from oil sells is not majorly used for oil subsidies. Other sectors of the economy requires financing from the oil sales. Now, we already know that Nigeria has a poor economy and its even getting poorer with high unemployment and hyper inflation, all thanks to Buhari economic policies.
To sustain the economy foreign reserves from oil earnings will be used to at least resuscitate the dying economy and stock up the depleting foreign reserves, also trying to push up the naira against the dollars to curb it from reaching #500/$.

All these will never allow subsidies on oil to hold and we are more likely to end up buying higher fuel pump price with rising oil prices. In all scenario, there's no benefits to the common man who buys fuel from the gains of rising oil prices.

All these can actually be reverted if Buhari sees the need as a Petroleum Minister to auction off the outdated refineries we have and build up a new one with state of the art facilities. $10 bn can give us something substantial that can save us from this deep poo of oil importation

Beancounter93:


Because

1.When oil was $100 dollars we had more revenue to pay subsides...and to subsidse fuel to N97 (not N87....that came after oil prices started dropping....and to get to N87 we drained our reserves).

2.Also, at $100, the value of the naira improved due to higher forex in circulation...which was enough to strengthen the naira.

Who come get fault? Buhari be bad manager.

Sunnycliff:


You can always agree with me that proceeds from oil sells is not majorly used for oil subsidies. Other sectors of the economy requires financing from the oil sales. Now, we already know that Nigeria has a poor economy and its even getting poorer with high unemployment and hyper inflation, all thanks to Buhari economic policies.
To sustain the economy foreign reserves from oil earnings will be used to at least resuscitate the dying economy and stock up the depleting foreign reserves, also trying to push up the naira against the dollars to curb it from reaching #500/$.

All these will never allow subsidies on oil to hold and we are more likely to end up buying higher fuel pump price with rising oil prices. In all scenario, there's no benefits to the common man who buys fuel from the gains of rising oil prices.

All these can actually be reverted if Buhari sees the need as a Petroleum Minister to auction off the outdated refineries we have and build up a new one with state of the art facilities. $10 bn can give us something substantial that can save us from this deep poo of oil important

Yes i know most of our money is not used for oil subsidy

BUT....it is rising...and it is a lot. (At least N1 trillion per annum.). And it would keep rising because the consumption of fuel is rising day by day(and because people are making a profit smuggling our fuel to other African countries that sell at a higher price and selling at a higher price...at least 40% of our subsided fuel according to one estimate)

With low crude prices, saving that amount of money can be very useful.

Plus, removing subsidy means more investment, more refinereis both big and small....which means more jobs, and more revneue from taxes, and from exporting products of refining....plus indirect effects on our industries...more money for the government coffers.

And we won't be taking loans as much as we used to.

ogododo:


Who come get fault? Buhari be bad manager.

Buhari is a bad manager but if he met high oil prices like in 2012-14, he would have done what GEJ was forced against his better judgement to do...use a large chunk of our forex earnings to subsidse fuel.

Because the thing is you Nigerians love cheap fuel. Even if we worsen our debt to keep it cheap. Like what Buhari is doing now...which is why he is a bad manager.

Good afternoon.

Beancounter93:


Yes i know most of our money is not used for oil subsidy

BUT....it is rising...and it is a lot. (At least N1 trillion per annum.). And it would keep rising because the consumption of fuel is rising day by day(and because people are making a profit smuggling our fuel to other African countries that sell at a higher price and selling at a higher price...at least 40% of our subsided fuel according to one estimate)

With low crude prices, saving that amount of money can be very useful.

Plus, removing subsidy means more investment, more refinereis both big and small....which means more jobs, and more revneue from taxes, and from exporting products of refining....plus indirect effects on our industries...more money for the government coffers.

And we won't be taking loans as much as we used to.

How many times will Buhari remove subsidies? To start with, he began by saying he don't know what is subsidy. As a substantive Petroleum Minister since 2015, what has been the rationale for his back and forth statement on subsidy removal

amc:


When oil be $100, exchange rate was N180, but when oil is less than $65, exchange rate is N498. Do the maths, that's if you understand basic arithmetic.

And who is the cause of high exchange rate??this empty brain APC and prior before now buhari said it in 2015 that subsidy is a scam,APC govt led by buhari always make policy that inflict pain on the masses worst govt ever in the history of Nigeria-Anti peoples comfort A P C
Mallam stop supporting useless govt

Beancounter93:


Buhari is a bad manager but if he met high oil prices like in 2012-14, he would have done what GEJ was forced against his better judgement to do...use a large chunk of our forex earnings to subsidse fuel.

Because the thing is you Nigerians love cheap fuel. Even if we worsen our debt to keep it cheap. Like what Buhari is doing now...which is why he is a bad manager.

Good afternoon.

With this current amount we are buying for fuel, what else have we not sacrificed for this government to understand the plight of the common man

Beancounter93:


Buhari is a bad manager but if he met high oil prices like in 2012-14, he would have done what GEJ was forced against his better judgement to do...use a large chunk of our forex earnings to subsidse fuel.

Because the thing is you Nigerians love cheap fuel. Even if we worsen our debt to keep it cheap. Like what Buhari is doing now...which is why he is a bad manager.

Good afternoon.

Sapele water never clear for your eyes.

Sunnycliff:


With this current amount we are buying for fuel, what else have we not sacrificed for this government to understand the plight of the common man

We are buying fuel cheaply compared to other African countries

In Ghana, fuel is N400 per liter
In Cameroon it is N418
In Benin it is N350
In Niger it is N377(oil producer)
In Chad it is N400 and above.(oil producer)

We have the cheapest price for fuel..in the whole of West Africa...even cheaper than Liberia and Sierra leone, and in the whole of Africa, only Algeria, and Angola pay less.

ogododo:


Sapele water never clear for your eyes.

I thought we were having a matured discussion, not an abuse match.

Anyway, may God bless you, and for the record, I am a teetotaler..

Beancounter93:


I thought we were having a matured discussion, not an abuse match.

Anyway, may God bless you, and for the record, I am a teetotaler..

Compare suffering of now to now bros, buhari na failure, but he dey lie sey Subsidy no dey, wetin con change now?

Sunnycliff:


But when it was sold at $40 range last year we were buying fuel at #120. What's the explanation for that

I paid my tuition fees, you need pay yours

Esseite:
Fix up the refineries and kick start Dangote refinery before pulling out the subsidy.. that is suppose to be the cushion on subsidy..

Correct talk, else untimely removal of subsidy can spark off spontaneous revolution because the average man is already frustrated...

hmm

greatiyk4u:



I paid my tuition fees, you need pay yours

Smiles, indeed, it's a faceless forum! I doubt if you have a firm grasp of Macroeconomics than myself

This is simply a disguised campaign to inflict more hardship

kissdabride:
And who is the cause of high exchange rate??this empty brain APC and prior before now buhari said it in 2015 that subsidy is a scam,APC govt led by buhari always make policy that inflict pain on the masses worst govt ever in the history of Nigeria-Anti peoples comfort A P C
Mallam stop supporting useless govt

Who controls international oil prices? I definitely know its not Buhari.

You can blame Buhari for not increasing our non-oil revenue to help us cushion the fall in oil price. But you should also blame Jonthan for not saving enough (Forex Reserves) to help us cushion the fall in oil price. That is what sensible governments like Algeria did when oil prices were high unlike our own government who were busy looting and wasting money.

Naijanascam:
Borrow money and build a modern refinery that will make petrol importation unattractive
and to increase the revenue base of that sector to fund itself,instead of borrowing to pay and service debts and waiting for government for subventions una no go gree

Many don't understand, crude oil is already worth 188 Naira per litre before you add the cost of refinery, financing cost, like interest rate, staff salary, waste byproducts, spare parts, chemical inputs, distribution cost etc.

Seems these things are too complex for the average Nigerian to understand. All they want in petrol at 40 Naira anyhow, otherwise the govt is not working. That is why we'd be disappointed in the next and next president, whether from north or south.

ogododo:
When oil be $100 dollar, na #87 we dey buy, but when less than $65, we dey pay above #160 per litre.
Lalasticlala.

You don't know anything

Jerryherd:


Benue is North, bornu Chad is North , Sokoto is North , Niger is North.. wether core North or surface North

Benue is not north

Timipreye!what is this man qualifications?

greatiyk4u:




Lolz, many ignorant peeps full here yet insulting the government on daily basis

Are u aware that if the prize gets to $150/barrel that fuel will be sold below 100Naira?

No time to coach you

you might have to start by coaching Fashola and a lot of the Nairalad Pro-Buhari folks

https://www.nairaland.com/2032842/gov-fashola-ignorantly-seeks-cut

amc:


Who controls international oil prices? I definitely know its not Buhari.

You can blame Buhari for not increasing our non-oil revenue to help us cushion the fall in oil price. But you should also blame Jonthan for not saving enough (Forex Reserves) to help us cushion the fall in oil price. That is what sensible governments like Algeria did when oil prices were high unlike our own government who were busy looting and wasting money.

let me just assume you don't know how much has been depleted so far under this administration.

The same Tinubu sponsored the demonstration that fuel subsidy is a scam under GEJ government. I hope some refineries have started working or else we will by at N300 per litre

amc:


No need for the insults. Have you heard of Middle Belt? Or its only middle belt when it fits the agenda?

Don't be smart by half. Is the Middle Belt counted as part of the 19 Northern states, yes or no?
Or which Middle belt state is not part of the ACF?

amc:


Who controls international oil prices? I definitely know its not Buhari.

You can blame Buhari for not increasing our non-oil revenue to help us cushion the fall in oil price. But you should also blame Jonthan for not saving enough (Forex Reserves) to help us cushion the fall in oil price. That is what sensible governments like Algeria did when oil prices were high unlike our own government who were busy looting and wasting money.

I can see you belong to same league(buhari) specialist in failure fault finders giving unnecessary excuses all the time blame their non challant altitude to past govt let,the fact remains that this govt has failed woefully and only God can liberate the innocent Nigerians from the grip of empty brains APC leader will have now.set of anti peoples policy APC

amc:


Who controls international oil prices? I definitely know its not Buhari.

You can blame Buhari for not increasing our non-oil revenue to help us cushion the fall in oil price. But you should also blame Jonthan for not saving enough (Forex Reserves) to help us cushion the fall in oil price. That is what sensible governments like Algeria did when oil prices were high unlike our own government who were busy looting and wasting money.

I can see you belong to same league(buhari) specialist in failure fault finders giving unnecessary excuses all the time blame their non challant altitude to past govt let,the fact remains that this govt has failed woefully and only God can liberate the innocent Nigerians from the grip of empty brains APC leader will have now.set of anti peoples policy APC.Nigeria is search of solution but find problem (buhari)

AntiBeEmCe:
How many times will they end petrol subsidy? The confusion of ds govt is the worst so far.

Trust me, when they actually end it, you will know.