NotoriousBiggyS:
...

Soffyh:
the most foolest humanbeing,is Tinubu the president or minister for petroleum stinks

Indelibleage:
Get ready, the days draw nearer.. We're getting nearer to the end of everything. Prepare for heaven. It won't be long again.

ppogba:
Bovas OLUYOLE is selling at N 162.

Ten vehicles being allowed in at a time.

No jerry can. Not even ragolis bottle.

Splitmind:
I have fuel in my area so they should stop moaning

clems88:
that useless filling station wey their short manager dey flex muscle. He go chop beating very soon.

Splitmind:
I have fuel in my area so they should stop moaning

backbencher:
All because we bring in fuel at N282 and sell it at N162 per liter

And the n282 is not static . Rising oil prices means it can pass 300 naira or more. Meanwhile we sell the crude at 162.

And subsidy costs don't cover the resulting loss

So prices have to go up or it would become too costly to keep fuel at N162 per liter.

And yes, the money that could have been used for refineries goes to paying for that subsidy. That is part of why we don't have refineries

poiZon:

You and who dey sell crude oil for N162?

Shebi i tell u to stop commenting on anything fuel, cos u don't know anything in that sector.

U r just like buhari pre2015 that talked rubbish and fools paid attention.

backbencher:
All because we bring in fuel at N282 and sell it at N162 per liter

And the n282 is not static . Rising oil prices means it can pass 300 naira or more. Meanwhile we sell the crude at 162.

And subsidy costs don't cover the resulting loss

So prices have to go up or it would become too costly to keep fuel at N162 per liter.

And yes, the money that could have been used for refineries goes to paying for that subsidy. That is part of why we don't have refineries

Duplik8t77:
stop saying this nonsense bro. This bullshit defies logic and economics.

backbencher:


Good evening and good luck

Thanks for your time

tito44:


Very stale lines. All these zombies sef...empty skulls

backbencher:


Good evening and good luck

Thanks for your time

backbencher:


Thank you for your kind words. I'll certainly keep them in mind. Good evening again.

tito44:


Good boy.

backbencher:


Good evening and good luck.

This is my last mention for you

backbencher:


And have a good rest of the year, good sir.

Pax vobiscum

Duplik8t77:
goodluck to you too in your flawed attempt to always defend the ineptitude of this government

Where are the shitty refineries buhari promised. How much does it cost to build a refinery in all the geopolitical zones. How much does it cost to revive the redundant refineries. So apc did not put all the bs you typed into consideration before making empty campaign promises.

The earlier you realise that alot of people in govt are making a killing by not allowing us refine our own crude and thereby maintaining the importation status quo, the better for you. Except of course you are one of those benefiting from the bs.

Go to the streets and see how people are suffering to get fuel. Fares are on the increase too. And you are wherever talking gibberish about how increase in crude price, leads to increase in price of local petrol

tito44:


Good boy. You are learning

backbencher:


Well, Dangote refinery cost over 10 billion dollars, 3 billion of which is his own money, the rest of which was loans.

And the banks gave him the loans because they know that if he defaults, they take over his lucrative other businesses and pay themselves

Government should build refineries. But since subsidy forces them to sell fuel at a loss, they in essence use money that could have been used for refineries to pay for subsides to cover the losses.

Good afternoon

ema2020:
....

backbencher:
All because we bring in fuel at N282 and sell it at N162 per liter

And the n282 is not static . Rising oil prices means it can pass 300 naira or more. Meanwhile we sell the crude at 162.

And subsidy costs don't cover the resulting loss

So prices have to go up or it would become too costly to keep fuel at N162 per liter.

And yes, the money that could have been used for refineries goes to paying for that subsidy. That is part of why we don't have refineries

Modified

For people angered by my comment, calm down and read the below passage.



SAUCE: FUEL SUBSIDIES IN NIGERIA, THEY ARE BAD FOR THE ECONOMY BUT THE LIFEBLOOD OF POLITICIANS.

backbencher:


[s]Just as you are learning from your husband, good girl[/s]

Apologies, it was not in my character to abuse you.

Good evening. I won't disturb you again.

GreatAxeMan:
Who created the conditions which led to the destruction of the refineries in the first place and why should the ordinary Nigerian pay for the incompetence of government?

tito44:


nice one boy. You are learning well.

backbencher:

In 1973, government brought in subsidsies for petrol, because of the oil shock occasioned by the Yom Kippur war.

Initially, the subsides were basically government reducing the price of PMS and other products by taking a bit of the profit. The oil sector still made a profit, and there was money to keep refineries running, and even build 2 new refineries self..taking it to 4.

Then in the late 1980/early 1990's, government in essence forced the oil sector to sell refined products like petrol, diesel and kerosene at a lower price than their cost of production, which meant that the oil sector lost money when they sold petrol

But government then decided to pay them a subsidy to cover the loss....while doing things like paying NNPC workers from crude oil revenue instead of the profits they made selling refined products like before (which did not exist now because they were selling below the production cost)

By 1993, Nigerian refineries missed their first turn around maintenance, simply because money was not there to keep them well maintained....and began slowly depreciating until by 2011, we were producing 6 million out of the 42 million liters of fuel per day of fuel.

And that's why we don't have refineries. To have refineries, they have to sell whatever they produce at a profit. Subsidy does not let them do so, plus subsides do not cover their losses resulting from selling petrol at a price below what it costs to produce it...said cost of production always rising because of rising oil prices, and depreciation in the naira brought about by us spending an increasing amount of crude oil revenue on subsidy.

That's the story. You are free not to believe it. And yes, it shows how inept government is, by taking a decision to sell fuel at a loss, and by not letting the industry run profitably. And it affects the industry in other ways.

We now refine fuel abroad in substandard refineries, at a cheap cost, so as to keep subsidy costs low, and the price low.And have been doing so for years. That;s how we got into the bad fuel mess. And even then, the PMS we use here is bad quality.

GreatAxeMan:



This is actually misleading. Nigeria did not have any refineries in 1973 and the number of cars plying Nigeria's roads in 1973 were probably not more than a few hundred thousands, so any temporary subsidy at that time wouldn't have been as astronomical as it is now.

In the 1980s all 4 of the refineries were refining enough products to satisfy the needs of the domestic market.

Nigerian refineries missed their turn around maintenance because of the insatiable greed and corruption of the Babangida and Abacha regimes and the low price of petroleum caused by Britain's Margaret Thatcher engaging in a price war with OPEC. It's because of these factors that there was no money for turn around maintenance.

I agree in substance with this submission, but you overlook the fact that market demand has kept on growing through the decades and the government's failure to privatize early and encourage the building of more refineries. It's actually competitiveness that reduces prices.

That still doesn't justify making the ordinary citizen to suffer for the greed and ineptitude of government.

Abikeade11:
Black Markets are selling 500 per litre, I said I can't buy it, I had to queue in the filling station for 220 per litre as at Saturday evening and on top of that ibedc refuse to give us light, we don't have choice except to burn fuel everyday. Only God can save us.