Alexis11:
This update will make some persons sick.

What exactly is wrong with you? Are you so blind that you can't see how this government keep sinking us down the abyss with their deceits. Foolishness will always keep you tribalistic. Wake up you fool.

The Hardship is at the peak already. Do wetin una like ... This evil government will soon be flushed out.

Abeg o

‎

Believe NNPCL @ your own detriment before you reach mid-year he go reach N1,200.

Fix our refinery first

Abeg o, make dem no increase am 🙏, the 600+ one, na tira tira we dey use buy am.

God no go shame us.

Bobloco:
Believed them at your peril

The last time I checked, fuel pump price moved from between N595 and N620 per liter to between N670 and N700 per liter without any statement from NNPCL

Wail with sense

Ikaeniyan0:
Wail with sense

While you are shouting “Ebi npa wa oo”

Bobloco:


While you are shouting “Ebi npa wa oo”

Stop wailing on our behalf

airsaylongcome:


Why do you think price will drop with local refining?

It will cut off the transportation cost which is huge. When you buy imported fuel, the cost of transportation is added just like ordering for products online.

Ikaeniyan0:
Stop wailing on our behalf

I need to wail o

Cos we all in this together bro

grandstar:
The economy is going to be in trouble.

Sticking to an obvious and very costly lie won't benefit the economy.

All the government needs to do is to increase interest rates which will lead to a strengthening of tge Naira, probably to around N900. Perhaps the government should peg the Naira at this rate and defends it at the parallel market.

This should bring the price of petrol to between 800-900 range. Government should then deregulate the price and hands off petrol importation.

Increasing interest rates Will not strengthen the naira. It only works in economies where individuals easily access credit to purchase stuffs. In those cases, increasing interest rates will reduce demand from individuals/customers, resulting in reduced prices as supply becomes more than demand.

But in Nigeria, only a very few individuals can access credit. Most credits are giving to companies into business. So, if interest rates begin to increase, businesses will avoid taking loans to fund new undertakings, leading to economic attritions. Also, businesses that have existing loans will spend a large part of their revenue servicing debts due to increased interest rates

We do not have to implement every policy from the West. We need to tailor policies to our peculiar situations

NNPCL IS NOT A MONOPOLY. IT SHOULD SELL AT LOWEST PRICE IN NIGERIA. IT SHOULD BRING PETROL PRICE DOWN NOW TO N500 per liter and KEROSENE N500 per gallon.

odimbannamdi:


Increasing interest rates Will not strengthen the naira. It only works in economies where individuals easily access credit to purchase stuffs. In those cases, increasing interest rates will reduce demand from individuals/customers, resulting in reduced prices as supply becomes more than demand.

But in Nigeria, only a very few individuals can access credit. Most credits are giving to companies into business. So, if interest rates begin to increase, businesses will avoid taking loans to fund new undertakings, leading to economic attritions. Also, businesses that have existing loans will spend a large part of their revenue servicing debts due to increased interest rates

We do not have to implement every policy from the West. We need to tailor policies to our peculiar situations

This policy of higher interest rates have worked very well in Nigeria in the past. It is the downside you don't like but it is the price any economy has to pay to bring inflation down to reasonable rates.

Yes, higher rates does lead to downturns or recession but once inflation has been conquered, interest rates will be brought down again.

The alternative is what you have: the Naira persistently losing value. This hurts everyone bad, especially the poor who can not afford assets to insure themselves again inflation.

airsaylongcome:


What deregulation again? I thought the President said subsidy had been removed, automatically deregulating the market

There is a difference between subsidy removal and deregulation.

Let us say the present market price for petrol is N900 per litre and government sells it for 700, there is a subsidy of N200. Government now increases the price to N900 stating they no longer want to subsidize it any longer. Yes, at N900 subsidy is gone.

Then the market price increases to 1,200/litre. That means to sell at N900, the government will have to subsidize it by N300/litre.

Let us say the price is deregulated. If the market price is N1,200/LITRE, the price automatically increases to 1,200/litre. The government no longer fixes prices.

The price of kerosene, AGO and have been deregulated. However, that of petrol is still fixed by government.

grandstar:


This policy of higher interest rates have worked very well in Nigeria in the past. It is the downside you don't like but it is the price any economy has to pay to bring inflation down to reasonable rates.

Yes, higher rates does lead to downturns or recession but once inflation has been conquered, interest rates will be brought down again.

The alternative is what you have: the Naira persistently losing value. This hurts everyone bad, especially the poor who can not afford assets to insure themselves again inflation.

How exactly does and has increasing interest rates curbed inflation in Nigeria? Within the last 18- 24 months, the MPC team has met and increased interest rates at least 4 times, but inflation has continued soar

adesegun121:
No Increase in PMS Prices, NNPC Ltd. Assures Nigerians

Believe these lies at your risk, petrol will be N1,500 per litre without subsidy.

odimbannamdi:


How exactly does and has increasing interest rates curbed inflation in Nigeria? Within the last 18- 24 months, the MPC team has met and increased interest rates at least 4 times, but inflation has continued soar

Are the interest rates higher than inflation? No.

That is the elephant in the room. Tinubu has always yearned for low interest rates, so I suspect he is the one preventing a rate hike, high enough to bring inflation down.

Government expecting inflation rate to be 21.4% this year made me sick to the stomach. That is the price that would be paid if interest rates remain way below the inflation rate.

Ken4Christ:


Not good enough. The price should come down. They should make all our refineries work and stop importing refined products. The price should drop if they do that.

The price will slightly reduce, the impact of functional refineries won't be much.

Ken4Christ:


It will cut off the transportation cost which is huge. When you buy imported fuel, the cost of transportation is added just like ordering for products online.

Naaaah. Transportation and other distribution costs is very inconsequential in the total landing cost of PMS in Lagos. Very very inconsequential

grandstar:


There is a difference between subsidy removal and deregulation.

Let us say the present market price for petrol is N900 per litre and government sells it for 700, there is a subsidy of N200. Government now increases the price to N900 stating they no longer want to subsidize it any longer. Yes, at N900 subsidy is gone.

Then the market price increases to 1,200/litre. That means to sell at N900, the government will have to subsidize it by N300/litre.

Let us say the price is deregulated. If the market price is N1,200/LITRE, the price automatically increases to 1,200/litre. The government no longer fixes prices.

The price of kerosene, AGO and have been deregulated. However, that of petrol is still fixed by government.

So effectively subsidy was never removed then. Because if the president says "Subsidy is gone forever", that means price should be determined by market forces which isn't happening.

Enemyofpeace:
you and this your made in aba English

English is not our language lolz 😆

I type local languages well
Hausa Igbo Yoruba

grandstar:


Are the interest rates higher than inflation? No.

That is the elephant in the room. Tinubu has always yearned for low interest rates, so I suspect he is the one preventing a rate hike, high enough to bring inflation down.

Government expecting inflation rate to be 21.4% this year made me sick to the stomach. That is the price that would be paid if interest rates remain way below the inflation rate.

I agree that interest rates are linked to inflation rate, but that theory applies when other factors (such as increased government spending, etc) are in place. Nigeria is a peculiar country where leaders keep looting amidst rising national debt and a gloomy economic outlook, coupled with the fact that we run a cash-driven economy like I noted earlier. So, increasing interest rates does the exact opposite - increase inflation further.

Let us look at it from the perspective of a business man. If the interest rates on my existing loan increases or I acquire loans at high interest rates, how do you think I will generate the extra money to pay the high interest rates? Of course, from my goods, through prices that are reviewed upwards. Does that then drive the inflation rate higher?

grandstar:


There is a difference between subsidy removal and deregulation.

Let us say the present market price for petrol is N900 per litre and government sells it for 700, there is a subsidy of N200. Government now increases the price to N900 stating they no longer want to subsidize it any longer. Yes, at N900 subsidy is gone.

Then the market price increases to 1,200/litre. That means to sell at N900, the government will have to subsidize it by N300/litre.

Let us say the price is deregulated. If the market price is N1,200/LITRE, the price automatically increases to 1,200/litre. The government no longer fixes prices.

The price of kerosene, AGO and have been deregulated. However, that of petrol is still fixed by government.

if Oando or Rano for example decides to sell at N850, can govt arrest them?
Stop creating difference where none exists.

airsaylongcome:


So effectively subsidy was never removed then. Because if the president says "Subsidy is gone forever", that means price should be determined by market forces which isn't happening.

saying subsidy is gone for good only means at that point, it was inconceivable to bring it back while announcing its removal.

Gboss247:
The price will slightly reduce, the impact of functional refineries won't be much.

refineries doesn't need to bring prices of refined crude products down so much. It is the import substitution effect that will bring prices of other goods down by strengthening the local currency.

odimbannamdi:


I agree that interest rates are linked to inflation rate, but that theory applies when other factors (such as increased government spending, etc) are in place. Nigeria is a peculiar country where leaders keep looting amidst rising national debt and a gloomy economic outlook, coupled with the fact that we run a cash-driven economy like I noted earlier. So, increasing interest rates does the exact opposite - increase inflation further.

Let us look at it from the perspective of a business man. If the interest rates on my existing loan increases or I acquire loans at high interest rates, how do you think I will generate the extra money to pay the high interest rates? Of course, from my goods, through prices that are reviewed upwards. Does that then drive the inflation rate higher?

Oga,
It works very, very well in Nigeria.

Banks and pension funds and other institutions will happily mop up the funds. It is nothing new.

Please, let us end the argument.

The downside is a recession. When central banks are determined to fight inflation, that is their favourite weapon. Yes, it can tilt economies into a recession. It has the same effect globally. It is the standard weapon. It is global best practice.

CodeTemplar:
if Oando or Rano for example decides to sell at N850, can govt arrest them?
Stop creating difference where none exists.

Your arrogance again displays your ignorance

Probably no one will arrest them.

The question you fail to ask is who will purchase from them when commuters can buy it at 600? No one wants to sell at a loss or holds stock indefinitely.

airsaylongcome:


Naaaah. Transportation and other distribution costs is very inconsequential in the total landing cost of PMS in Lagos. Very very inconsequential

You don't know that traveling by boat is five times more expensive that road talk more of carrying goods. Even within Nigeria, it cost millions to transport goods by barge. It's not cheap. Even the cost of transportation for cars bought abroad is almost equivalent to the cost of the car.

Ken4Christ:


You don't know that traveling by boat is five times more expensive that road talk more of carrying goods. Even within Nigeria, it cost millions to transport goods by barge. It's not cheap. Even the cost of transportation for cars bought abroad is almost equivalent to the cost of the car.

I tell you for free that transportation cost for landing PMS is very inconsequential. It's about 10% of the cost of the petrol itself.