NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy - Politics (4)

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NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy - Politics (4) - Nairaland

Nairaland Forum / Nairaland / General / Politics / NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy (18843 Views)

It Is Not Subsidy: NNPC Explains Why It Sells Fuel Lower Than Landing Cost / NNPC: We Spent ₦966 Billion On Pipeline Repairs Between 2010 And 2015 / We May Start Selling Petrol Above N145 –IPMAN (2) (3) (4)

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by AnyanwuSK: 1:33pm On Aug 20

It's charity

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by benjaminlawson(m): 1:33pm On Aug 20

The criminals ruling this country never tire of their shameful act, how would someone tell us that they are selling price of it cost them and still claim there is no subsidy. Do they think everybody is fool like them? It is Nigeria a government officials will give figure without statistical evidence. All the billions of Naira and Dollars MD of NNPCL claimed is for subsidy, d did he gave us any figure of quantity impact and price par litre, can import document be verified against it, can ship and insurance manifest proved the figure? Can Nigeria custom confirm the payment of appropriate import duties paid. The official always like to claim unsubstantiated value, and those in authority approved without asking questions. This is what is know as conspiracy of elite, what make Nigeria democracy to be government of elite, for the elite and by the elite.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 1:36pm On Aug 20

Willie2015:

Its not about the selling price ...
Its strictly about those who dont want refineries to work..
Let the four refineries be functional...
And let Dangote Refinery also do his own part...
Petrol will be available...at a good price..

The refineries have not been working because subsidy prevented the sector from making a profit (remember until 2013, diesel and kerosene were subsidised....as well as petrol...meaning every liter comming out of our refineries of diesel, kero and petrol lost money. Even jet A1 fuel).

You refine something that costs N1000 to make , and then sell it at N700, and expect there to be a profit for 1) imports of fuel 2) even refinery in Nigeria.

Keep in mind that we have been doing this for decades, and it got so bad, we started skipping TAM to keep costs of subsidy low. Result...we lost refining capacity from 400000 bpd in 1988 to less than 9000 In 2019.

Now, see Venezuela....once upon a time, they had one refinery that produced 900000 Bpd of fuel, now that same refinery produces less than 100000 BPD.

And fuel there sells for the equivalent of N40. Government there loses 12 billion dollars annually to smuggling.

And the government is even more tougher and nationalistic than Nigeria, and has even dealt with the rich elite there...yet same results.

And there is no Nigerian running things there at all.

As harsh as it sounds petrol costs money to refine, and must be sold at a profit to pay the costs, and salaries , and upgrades cost.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 1:39pm On Aug 20

Majesty7:

You got it 95% wrong. I am just being gentle with your assertions. The only thing that you said and that is applicable to the private sector is not selling things on loss.

Our tax to gdp ratio is less than 11%. Over 70% of Nigerians do not pay income tax to the federal and state coffers. Between 60-80% of our revenues comes from oil, and most of the rest comes from loans.

We ain't earning enough from tax

And even if we were earning from tax...take our budget for this year. It is less than 30 trillion. Estimates for fixing our power sector for example have been put at 15 trillion yearly. Half our budget.

Would you spend half our budget on fixing power up, and use loans to fll in the resultant deficit?

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 1:40pm On Aug 20

themanderon:

And who told you it costs that amount in the real sense? The same crooks in government? Or where you there when they arrived at that figure?

That's the problem. If it does not suit your idea of things, it is a lie. That's kind of childish from you old man.

Good morning. Nice talking with you.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by DJInfluence: 1:45pm On Aug 20

Old men with children brains.
I don't blame them, the journalists are not even asking the right questions or pushing these people when they start making nonsensical statement.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by integrity16(m): 1:47pm On Aug 20

themanderon:

The Nigerian government has been lying to Nigerians for ages now concerning the happenings in the oil and gas sector. The sleaze going on in that industry will blow your mind to shreds.

This is really unfortunate that the worst of us are the one ruling the best of us.

In Nigeria, when a government is voted to solve problems facing the citizenry, the government eventually becomes the Problem.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Majesty7: 1:48pm On Aug 20

nairalanda1:

Our tax to gdp ratio is less than 11%. Over 70% of Nigerians do not pay income tax to the federal and state coffers. Between 60-80% of our revenues comes from oil, and most of the rest comes from loans.

We ain't earning enough from tax

And even if we were earning from tax...take our budget for this year. It is less than 30 trillion. Estimates for fixing our power sector for example have been put at 15 trillion yearly. Half our budget.

Would you spend half our budget on fixing power up, and use loans to fll in the resultant deficit?

Lies! Lies!! And lies!!!

Which trillion yearly? What happened to the billions of USD allocated to the power sector by Obasanjo? What happened to the previous allocated budget? Who said we are not earning enough from tax? Nigerian government have succeeded in brainwashing her citizenry to believe anything they spit out. Corruption! Don't believe this guys. A country with zero accountability. If not so, why will NNPC wake up to always tell us trash.

They will wake up tomorrow and tell you again that the landing cost is now #1,600 and they will believe Nigerians won't ask questions.

Please let's stop all these lies

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Willie2015: 1:48pm On Aug 20

nairalanda1:

The refineries have not been working because subsidy prevented the sector from making a profit (remember until 2013, diesel and kerosene were subsidised....as well as petrol...meaning every liter comming out of our refineries of diesel, kero and petrol lost money. Even jet A1 fuel).

As harsh as it sounds petrol costs money to refine, and must be sold at a profit to pay the costs, and salaries , and upgrades cost.

Subsidy is a scheme put in place by Elites that...
do not want the refineries to work ....
It cannot act alone in itself...
Remove the bottlenecks and let the refinery work first and foremost
Four refineries plus Dangote is enough to do the magic...
Price will find its true place with these factors in place ....
Not the other way round...

3 Likes

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by integrity16(m): 1:48pm On Aug 20

phemray:

Reason I don't like weaker presidents like yaradua and Jonathan. NNPC is scan and we all know, OBJ sold them to foreigners and yaradua reverted it knowing fully well that they are not productive and profitable. Same as Jonathan keep borrowing and using forex reserves to defend the fuel subsidy and naira. People protested and he reverted. These are not true leaders.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 1:49pm On Aug 20

Willie2015:

Subsidy is a scheme put in place by Elites that...
do not want the refineries to work ....
...

Nope, it is what you Nigerians , elite and the people want.

You get low oil prices, the elite make money from subsidy claims and smuggling...as do some of the general populace.

If you really want subsidy gone, you would support fuel being sold at market price. SImple.

1 Like

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 1:50pm On Aug 20

Majesty7:

Lies! Lies!! And lies!!!

Which trillion yearly? What happened to the billions of USD allocated to the power sector by Obasanjo? What happened to the previous allocated budget? Who said we are not earning enough from tax? Nigerian government have succeeded in brainwashing her citizenry to believe anything they spit out. Corruption! Don't believe this guys. A country with zero accountability. If not so, why will NNPC wake up to always tell us trash.

They will wake up tomorrow and tell you again that the landing cost is now #1,600 and they will believe Nigerians won't ask questions.

Please let's stop all these lies

Right, I can't argue against someone who thinks I am lying.

It's the internet, after all, everyone thinks he is right, me inclusive

Good morning

1 Like

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Magnetic010: 1:52pm On Aug 20

Please what is subsidy?

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 1:52pm On Aug 20

Majesty7:

Lies! Lies!! And lies!!!

Which trillion yearly? What happened to the billions of USD allocated to the power sector by Obasanjo? What happened to the previous allocated budget? Who said we are not earning enough from tax? Nigerian government have succeeded in brainwashing her citizenry to believe anything they spit out. Corruption! Don't believe this guys. A country with zero accountability. If not so, why will NNPC wake up to always tell us trash.

They will wake up tomorrow and tell you again that the landing cost is now #1,600 and they will believe Nigerians won't ask questions.

Please let's stop all these lies

NO counter point, no rebuttal, just abuse.

Anyway, enjoy your subsidised prices.

You Nairalanders should learn how to debate others , instead of just screaming lies repeatedly. It does not show you know anything of the matter under discussion.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by EXPRESSSMAN(m): 1:54pm On Aug 20

Tinubu removed subsidy without any plan or understanding of what it is.
He then devalue the Naira without another understanding.
Now subsidy got annoyed and bounced back at 400%.
These are the true positions we know all these while. Tinubu is paying more subsidy than past administration.
They don't want to accept the reality on on ground. He has only succeeded in grounding the country.

5 Likes

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Kaycee9242(m): 1:55pm On Aug 20

Scandium:
But this country is very funny oo. What is actually the problem why Nigeria cant get 24 hours electricity? Is it mission impossible or what is wrong exactly.

Now all these money they are lamenting about using to buy millions of litres of fuel daily, if there is stable electricity in the country, the fuel consumption will reduce drastically because a very large percentage of that fuel they claim they are subsidizing goes for generator use especially for businesses in areas suffering epileptic power supply.

Make them fix electricity using nuclear, hydro or gas turbine systems and watch the consumption of fuel reduce. While they recover the money used in generating the electricity through payment of light bills on prepaid meters and other viable methods.

But the main question remains, why cant Nigeria fix it's electricity in this modern age and reduce the consumption of fuels like Petrol and Diesel drastically?

And the worst now is that most of the fuel stations don't sell to kegs anymore. Tell me how one will be fueling his generator and no light.

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Olamideayomide(m): 1:57pm On Aug 20

Theif same as Marauders
Small same as little
Money Embezzlement same as Money laundering
Another words for petrol subsidy is Shortfall

All this yeye leaders and top management at helms of affairs of this country will end this country with big grammar when they want to defend themselves.

Toor...

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Scandium: 1:58pm On Aug 20

Kaycee9242:

And the worst now is that most of the fuel stations don't sell to kegs anymore. Tell me how one will be fueling his generator and no light.

In fact ehn. This country is a total mess. Some things happening here are just unexplainable.

3 Likes

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Willie2015: 2:01pm On Aug 20

nairalanda1:

Nope, it is what you Nigerians , elite and the people want.

You get low oil prices, the elite make money from subsidy claims and smuggling...as do some of the general populace.

If you really want subsidy gone, you would support fuel being sold at market price. SImple.

Absolutely wrong...

Everyone agreed subsidy must go...

Tinubu already removed the subsidy...

So where is the problem coming from ......?

2 Likes

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 2:02pm On Aug 20

Willie2015:

Absolutely wrong...

Everyone agreed subsidy must go...

Tinubu already removed the subsidy...

So where is the problem coming from ......?

Shortfall.....that's the word I have for you.

If there was no subsidy, fuel would cost N1300 or more by now.

1 Like

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Otilaw: 2:03pm On Aug 20

The question to be asked is why is Nigeria importing fuel?
instead of refining it here in Nigeria.

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Willie2015: 2:05pm On Aug 20

nairalanda1:

Shortfall.....that's the word I have for you.

If there was no subsidy, fuel would cost N1300 or more by now.

FG removed subsidy ....

And yet it came back again .....

Na spirit grin

Thats the angle you need to understand ....

Its just not about market prices .....

Sell it at N1300... and above....

They will create another system to pay subsidy

2 Likes

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Scandium: 2:07pm On Aug 20

nairalanda1:

We don't have electricity and petrol because we sell them below the market price, in the name of subsidy, and have been doing so since the 1970's.

The first warning signs were when we had fuel queues in 1976, and power cuts from 1978.

But since we 'had to help the poor' we continued.

The result...the power and petroleum sector depreciated because there wasn't enough profit in the system to fix and upgrade and maintain things at the same time.

Right now, power for most people is charged below the production cost of N160-170 per kwh, except for Band A people who pay N209 and above, and even then, government is planning to subsidise universites and hospitals on band A. Add the fact that band A people make up 20% of the customer base of our electriciity sector

Meaning our power sector loses money. ANd here is the scary thing, before the BAND A price increase , everyone paid below the production cost of a kwh of power. EVERYONE.

I haven't even mentioned things like massive power theft , among other things. And then the corruption which arises in part because since we don't pay the discos and gencos decent money, their workers supplement their income by bribes and so forth...including ilelgal conncections.

The result is the power sector has been operating at a chronic loss for decades...even now, government owes the sector N2 trn or more in unpaid subsidy costs. Let's not even talk about the debt owed by Nigerians.

Compare with the GSM sector who at least have some control over price setting....tell me, when was the last time you bribed an MTN worker to connect you to the network when your airtime ran dry?

Sell at a loss, operate at a loss. Feed a child one egg and two grains of rice a day, dont complain when the same child scores minus 40 in his end of term examinations.

You run something at a loss, issues start.

So how do you think this issue can be sorted out. I mean the issue of no constant electricity supply.

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Intergrated: 2:08pm On Aug 20

mrvitalis:

Honestly Jonathan supporters were not this stupid

the highest stupidity is APC supporters no cap bro. Dem foolish even devil dey run from them

3 Likes

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 2:08pm On Aug 20

Willie2015:

FG removed subsidy ....

And yet it came back again .....

Good, you get the format.

Na spirit

Thats the angle you need to understand ....

I think we say the same thing...

Its just not about market prices .....

Market price in this case is a price that is higher than the landing cost for fuel in this country (or a price that is higher than the cost of refining when Dangote et al come on stream)....that enables the seller to make a profit to keep on being in business of improting or refining so to speak.

1 Like

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by mrvitalis(m): 2:08pm On Aug 20

leokid866:
what are you talking about ? Did you people think even under Pdp and their failed years that it was the landing cost you were seeing at the pumps? How do you think they managed to deplete out dollar reserves in 16 years?

PDP removed subsidies and price was ₦145 APC said no

Now pay subsidies and price is ₦650

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by nairalanda1(m): 2:09pm On Aug 20

Scandium:

So how do you think this issue can be sorted out. I mean the issue of no constant electricity supply.

(You are not going to like my answer)

Everyone pays for power at N210 per kwh, with prices going up as the cost of producing one kwh of power goes up.

LIke I said, you won't like my answer.

1 Like

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by mrvitalis(m): 2:09pm On Aug 20

phemray:

It seems you don't really understand what is the subsidy that was gone. B4 now, presidency and national assembly provided huge amounts of money, even taken loans to pay for fuel subsidy while NNPC declared no profit. But now, NNPC remains unprofitable as its ever being but the presidency no longer budget and pay for additional overhead called subsidy. So, NNPC takes responsibility for the, Crude and the PMS. Meaning, NNPC have been cheating FG and nigerians since. Before now, No profit made, non refineries working and you still collected subsidy from government. No no no.
I will be so surprised if PH refinery come back to life after dangote, meaning it's dangote production that exposed thier deals.

Do you think you are talking to APC zombie?
Get lost from here abeg

1 Like

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by mrvitalis(m): 2:09pm On Aug 20

DaddyCoool:

Ehm. .. did you see him mention subsidy?

Dundee United

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Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Lexusgs430: 2:10pm On Aug 20

NNPCL loves Nigerian's so much......🤣❤️💜

2 Likes

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Horseman01(m): 2:13pm On Aug 20

Yourprick:

https://www.thecable.ng/nnpc-we-are-selling-petrol-at-half-the-landing-cost-but-it-is-not-subsidy/amp/

So what do you called subsidy ?

Re: NNPC: We Are Selling Petrol At Half The Landing Cost — But It Is Not Subsidy by Willie2015: 2:20pm On Aug 20

nairalanda1:

Market price in this case is a price that is higher than the landing cost for fuel in this country (or a price that is higher than the cost of refining when Dangote et al come on stream)....that enables the seller to make a profit to keep on being in business of improting or refining so to speak.

Ur model will bring chaos....confusion...
Hunger and death ...
How many Nigerians do you think will survive and live ....
Assuming fuel get to N2k/Litre... with your profit model....
Knowing the fact that we are already the world capital of poverty...
Ur model is unrealistic...wicked and dont have a human face...
Even the Almighty US spends more than $30 billion a year on subsidies for farm businesses and agriculture....

3 Likes

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