Beaf:

I'm more than willing to give them a chance.

Whose next line of action?

Of course!

Dude, I have not argued anywhere that fuel would be cheaper; rather, if the N1.3trillion is properly utilised, we will actually be much better off. The grapevine has it that it is going to go into areas such as welfare packages for schools and maternal care, water, transportation, infrastructure etc. I believe there are very very juicy plans for the common man

Beaf:

Whose next line of action?

klas:

What backing do you need? copy of the invoice or payment voucher?

If total fuel cost (refining cost + shipping+ other costs+margin) = let say N120 and public pays only N65 while govt pays the balance as subsidy. Do you require rocket science that if government remove its subsidy, somebody has to pay the shortfall and that is the consumer.

And to the marketer, what difference does it make to him whether the full price is fully paid by the public or partly paid by the public and partly by the government?

So long as we are still importing, the fuel importers must pay the full cost at the at the refinery and must recover their full cost

Removal of the subsidy increases the price payable by the public not that it will reduce the cost or profit of the marketer. period.

But the committee wanted to know why fuel subsidy which used to be about N500 million in one year suddenly jumped to N1. 426 trillion within the space of less than one year.

Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Reginald Elijah Stanley, however, disagreed with the N1.426 trillion for 2011.

The PPPRA boss said that some of the figures reeled out by Abe did not quite add up.
According to him, “some of the figures read did not tally with the actual figures.”

Stanley gave the figure of N1.348 trillion as the amount spent on fuel subsidy between January and August this year.
He also gave a grand total of N3.665 trillion as the amount spent on fuel subsidy between 2006 and August 2011.

But the committee wanted to know why fuel subsidy which used to be about N500 million in one year suddenly jumped to N1. 426 trillion within the space of less than one year.

Findings by our correspondent indicated that in 2006, only MRS, Total and Oando were officially listed as beneficiaries of the fuel subsidy recognised by the Federal Government.
The three companies were said to have been listed as “major marketers.”

But in 2007, AP and Mobil  joined the three companies and were listed under the category of majors.
The same year, NIPCO was introduced and listed under the category of petrol depot owners.
A new category of “independents” included some marketers who had no depots.

AITEO Energy Resources and Triquest Energy was also added in 2007, bringing the total to eight beneficiaries of the fuel subsidy.
The Nation gathered that the list of subsidy beneficiaries increased sharply in 2008 to a total of 23, made up of six majors.
In 2008,Conoil joined, and NIPCO was joined by Capital Oil and Folawiyo Energy, under the category of depot owners.

The list of “independents” also increased from two in 2007 to 14 in 2008 as AITEO and Triquest were said to have been joined by Triquest Oil services, IMAD Oil & Gas, Integrated Oil and Gas, Rahamaniyya, AMG Petro Energy, Brittania, ACORN, A-Z Petrolleum, SHIELD Petroleum and MAJOPE Investment Limited.

And in 2010, the beneficiaries of the subsidy payment under the category of major marketers remained six, the depot owners remained two, but the list of independent marketers went up to 28 with the curious inclusion of many relatively barely known companies.

ideylaff:

Hear yourself @ beaf, just hear yourself, I'm smh, 4 u and your ideas and pro GEJ plans that we all know are scams to say the least,

These clowns running the country just need more money for themselves . Nothing more, their antecedents is nothing to write home about and so please stop telling people or tryinf to convince them of some imaginary N1.3 trillion Power Point Mummy Okonjo Iweala and No shoes GEJ + d other fools have cooked up,

we have had enuff of their lies.

tundysho:

You people should please leave this well known yeye attention seeker called BEAF and lets talk about the issue at hand,nobody should respond to him again,he is having a swell time with your responses,i know him
[b]
The whole subsidy issue is simple.

1.There is simply nothing like those benefitting from the subsidy,its simply business
2.There is a shortfall in demand and the supply of petroleum product in the country
3.Business men import the products to make up for the shortfalls
4.There is what we call landing cost and profit margin per litre, which the importers must make from their investment
5.The govt have failed in thier social contract with the people to provide the basic nessesity  by not allowing the refinaries to work

You simply don’t put the cart before the horse,make the refinaries work first,then the subsidy will naturally remove itself,when it
will no longer be profitable for the importers.Nigerians are not daft,we all know that it is simply unsustainable to continue to subsidize
fuel products to the tune of 1.5 trillion annually.SIMPLY MAKE THE REFINERIES WORK

The excuse of providing infrastructures does not sell,what our taxes used for,without the removal of subsidy we would not be provided
our basic infrastructures? .Our leaders are never sincere,all they do is lip service.They simply do not have that burden for the masses
If you see the way politicians take up issues that concern their people in other countries,you would marvel

[/b]

biachwest:

The beneficiaries of the so called fuel subsidy have been revealed by the FG.This group of people should be hold responsible for the poor inf ranstructures,  high unemployment,they should be held responsible for shipping our jobs overseas (to richer countries).
What we should concerned of now is to support the removal and the senate should lay out  a strong strategies on how to monitor the executive in the nest fiscal year on how  the fund will be used,making sure the money creates jobs,build new roads,health centers,schools,water e.t.c.
Nigeria will only grow economically if jobs is created and this is the time to take some hard decisions, Nigerians should get use to it.

lanre_front:

WHY CAN'T THIS OIL-SUBSIDY BE
REMOVED BY MAKING (BY REPAIRS) OUR
REFINIRIES TO START WORKING AND
FUNCTIONING AT FULL CAPACITY?

A-ZeD:

@manny4life,
if market forces work in Nigeria, would GEJ economy master plan Dangote be as Wealthy as he is today?
Would the price of cement be as high as it is?
would the price of sugar be as it is?
Dude this is Nigeria we are talking about.

Beaf:

^

I don't get your argument, do you think the fuel subsidy will cause market forces to work in Nigeria? IMHO, the only thing that can make market forces work is if we actually get off our arses, start working and producing stuff locally. As long as we keep relying on Abuja handouts, oil subsidies, corruption and importation, market forces will never work in the country ans we will remain poor and wretched.

"Professor Tam David-West, Petroleum Minister during the era of General Muhammadu Buhari, and Mines, Power and Steel in the General Ibrahim Babangida government, spoke with GBENRO ADESINA on the controversy over oil subsidy removal.

For the layman on the street, does oil subsidy exist?

There is no oil subsidy in Nigeria. It is a lie and fraud. After the regime of General Buhari, I challenged government after government, from General Ibrahim Babangida and Chief Ernest Shonekan to General Olusegun Obasanjo and President Goodluck Ebele Jonathan, to appear on national television with me to justify their subsidy.

This time what do they do? These fraudulent people will take our oil, refine it and bring it back and sell it at foreign exchange. This is fraud in the highest places. Why is it that during Buhari era, with three refineries we were self sufficient but at their time, with four refineries we are now importing fuel?

I personally signed the contract of the fourth refinery which we call new Port Harcourt Refinery in 1984. It was one of the best in Africa, with a capacity of 160,000 barrels per day. The first refinery, in Port Harcourt, was built in 1965; Warri refinery in 1978, and Kaduna refinery in 1980. A newly constructed refinery can’t have major problem for about 30 years. The problem they will not tell you is that after Buhari, every Minister and Head of State became an oil sheikh, except General Abdulsalami Abubakar.

Some ministers have petrol stations and oil blocs. You can’t serve the nation and serve yourself at the same time because you can’t serve two masters at a time. One must serve his country and the dividends of doing this is satisfaction. Total capacity of our four refineries is 445,000 barrels per day. If the refineries are working even at 80 per cent, we will have more than enough product. They did not do that but sabotaged our refineries.

No i dont think market forces will work in Nigeria. That was a reply to manny4life.
Do you think anybody will build refineries with the poor power situation in the country?? Jonathan is putting the cart before the horse. Why would any marketer build a refinery in Nigeria when it is profitable to import?
Look at it this way,
If Mr x builds a refinery in Nigeria
he will have to power the refinery(that we dont have)
he'll employ more workers
spend more in the short term to build the refinery
chances are his profit margin will drop, e.t.c
The aim of a business is to maximise profits while keeping costs as low as possible,

989900:




Another goverment apologist, are you serious?
Are you aware Nigeria has 4 refineries which are enough?
Who is responsible for Power supply?
Do you think Aso Rock does not have constant power suppy?
Riddle me this, between shipping petroleum overseas for over 20 years now and powering a refinery which is cheaper?
I guess even your governor's son or daughter can afford to power a refinery.

mrjingles:

Beaf save your breath, most posters don't even understand what oil subsidy is (You will be surprised how ignorant a lot of us are about what subsidy actually is) so engaging them in any form of reasoned debate is a waste of time (their premise is already faulty). Allow the internet warriors to take out their frustration on their keyboards. I keep saying it- Nland is exposing the alarming decline of our educational system (bracing myself for the inevitable flood of insults)

E nice:

@beaf, thanks 4 tryin 2 educate these ignorant posers on subsidy. Most of them are so selfish that they cannot see beyond their nose. At our current production rate, our crude oil will be completely used up in 37 years. What happens then? Is it not better to plan now instead of sharing!!!? Fuel subsidy removal will generate more employment,  infrastructural development and prudent government. Those of u that compare Nigeria to other OPEC countries, check out their oil reserves, population and their output to population ratio. It is like a man who earns 80k wit 2 kids and one that earns 100k wit 10 kids.

The fanthom removal of oil-subsidy is just
a ploy to increase the price of petrol.
Reason? GEJ wants his friends - the
CABAL to continue making billions from
fuel-importation, but wants to shift the
burden from the neck of his goverment unto the neck of the poor masses already
overburdend through goverment
corruption.

Please anyone who has even a single
bone of sincerityin his/her body, please
ask yourself & answer this pertinent
question: Why can't this fuel subsidy be removed
through making(by repairs) our refiniries
to start working & functioning at full
capacity?

WHY CAN'T THIS OIL-SUBSIDY BE
REMOVED BY MAKING (BY REPAIRS) OUR
REFINIRIES TO START WORKING AND
FUNCTIONING AT FULL CAPACITY?

In my own opinion, the answer to this
pertinent question(also big puzzle) is
this: if the refinries start working as they
should, the need to make any trillions
availabe for oil-subsidy will vanish. But
that's not the only thing that will vanish. The very lucrative billions-of-dollars-
profit-making- business of fuel-
importation will automatically grind to a
halt since Nigeria will have all the fuel it
needs produced loaclly through our
refiniries, hence no need for importation. So because fuel-importation must
continue at all cost, because
"chopulation" must continue at all cost for
the BIG BOYS of PDP and PDP associates,
the option to be taken is for price of fuel
to be inceased instead of the best option (best both in short & long terms) of
repairing our refiniries.

This way, the PDP Big Boys continue making money; but instead of making it off goverment, GEJ wants them t now be making it off the poor masses.

But this is just my humble opinion. Please
can we have yours. Kindly educate us.