5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

NSNO:
5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean I competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

let those things you mentioned start working first before the subsidy is removed. That's all we are saying. We cannot just be suffering their cluelessness always.

1Alex:
let those things you mentioned start working first before the subsidy is removed. That's all we are saying. We cannot just be suffering their cluelessness always.

Think of subsidy removal as the incentive they need to fast track those things.

NSNO:

Think of subsidy removal as the incentive they need to fast track those things.

Exactly.

The profit motive is what moves humans. Humans would only do stuff if they can make money doing it.

Subsidy ended with the same government that formed it

NSNO:

Think of subsidy removal as the incentive they need to fast track those things.

if you are a salary earner, will you allow your boss to start cutting your salary because he wants to use the money to repair the company's faulty generator set. Meanwhile, the gen set was making money for him but he was squandering the money and refused to service the gen when due. Now he wants to cut more than half of your salary to fix the generator.

nairalanda1:


Exactly.

The profit motive is what moves humans. Humans would only do stuff if they can make money doing it.

Thank you brother. Nigeria will be great in our time.

HenryTimes:
Subsidy ended with the same government that formed it

What do you mean?

NSNO:
5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

Refineries will soon be coming online? They are already online naa, audio refineries indeed

1Alex:
if you are a salary earner, will you allow your boss to start cutting your salary because he wants to use the money to repair the company's faulty generator set. Meanwhile, the gen set was making money for him but he was squandering the money and refused to service the gen when due. Now he wants to cut more than half of your salary to fix the generator.

Poor analogy, I'm sorry to say.

A better analogy would be your boss pretending that it cost N1million naira to maintain the generator every month, meanwhile it really costs N3 million naira, but because they do not want to cut staff salaries and welfare, they spend the N2 million they would have spent on the generator....to pay staff salaries....which overall means that the company loses money. Meanwhile they are taking loans to pay for the balance of the generator maintenance.

At some point , they realise they cannot continue doing that, so they announce a 30% cut in staff salaries, or there won't be electric power.

That is how subsidy works....to keep fuel prices down, we take money from other sectors of the economy to compensate the industry for resultant losses from keeping prices of fuel too low....while taking loans to cover up the resulting deficit in the budget. After some time, the debt gets too big to sustain. We reached that point years ago, but kept pretending, now it has reached crisis point.

Amaly:

Refineries will soon be coming online? They are already online naa, audio refineries indeed

NNPC is repairing all its refineries (This is not a lie. Heard from an insider). Kyari even says a refinery would be online before the year runs out, and another by the middle of next year.

The reason is simple. Subsidy removal makes domestic refining profitable. NNPC is moving to take advantage...especially since they are now a private company and government won't be giving them money anymore...so they have to work for it.

NSNO:
5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

They should have given more companies licence to import pms before subsidy removal.

We will minimize our movements and talk more on phone.

joyandfaith:

They should have given more companies licence to import pms before subsidy removal.

This is very true.

But Tinubu is in a hurry to get as much money as he can.

nairalanda1:


Poor analogy, I'm sorry to say.

A better analogy would be your boss pretending that it cost N1million naira to maintain the generator every month, meanwhile it really costs N3 million naira, but because they do not want to cut staff salaries and welfare, they spend the N2 million they would have spent on the generator....to pay staff salaries....which overall means that the company loses money

At some point , they realise they cannot continue doing that, so they announce a 30% cut in staff salaries, or there won't be electric power.

That is how subsidy works....to keep fuel prices down, we take money from other sectors of the economy to compensate the industry for resultant losses from keeping prices of fuel too low....while taking loans to cover up the resulting deficit in the budget. After some time, the debt gets too big to sustain. We reached that point years ago, but kept pretending, now it has reached crisis point.

on a layman's terms, check the amount of money looted by this politicians and you will know subsidy isn't our problem. How long will it take for them to maintain a refinery? If our refineries were working I doubt if Nigeria will be in this mess. The main cause of this fuel subsidy is because we are still importing PMS. Our legislators are the amongst the highest paid in the world.

nairalanda1:


Poor analogy, I'm sorry to say.

A better analogy would be your boss pretending that it cost N1million naira to maintain the generator every month, meanwhile it really costs N3 million naira, but because they do not want to cut staff salaries and welfare, they spend the N2 million they would have spent on the generator....to pay staff salaries....which overall means that the company loses money. Meanwhile they are taking loans to pay for the balance of the generator maintenance.

At some point , they realise they cannot continue doing that, so they announce a 30% cut in staff salaries, or there won't be electric power.

That is how subsidy works....to keep fuel prices down, we take money from other sectors of the economy to compensate the industry for resultant losses from keeping prices of fuel too low....while taking loans to cover up the resulting deficit in the budget. After some time, the debt gets too big to sustain. We reached that point years ago, but kept pretending, now it has reached crisis point.

I understood you but my analogy is not based on the subsidy itself but on their reluctance in keeping local refineries functional which resulted in the subsidy, now they want us to suffer their inefficiencies by just removing the subsidy.

ruggedtimi:
on a layman's terms, check the amount of money looted by this politicians and you will know subsidy isn't our problem. How long will it take for them to maintain a refinery? If our refineries were working I doubt if Nigeria will be in this mess. The main cause of this fuel subsidy is because we are still importing PMS. Our legislators are the amongst the highest paid in the world.

Big problem with subsidy is the fact that pump prices are kept below the price of production....which means there is no incentive to refine petrol at home.

That brings in distortions like bad refineries, people lying about imports of fuel to get their hands on more subsidy money and so on.

The problem ulitmately is, people, and that includes you...want to be paid.

ruggedtimi:
on a layman's terms, check the amount of money looted by this politicians and you will know subsidy isn't our problem. How long will it take for them to maintain a refinery? If our refineries were working I doubt if Nigeria will be in this mess. The main cause of this fuel subsidy is because we are still importing PMS. Our legislators are the amongst the highest paid in the world.

One of the major problems in this country is the fact that Nigerians don't demand much from their legislators. Those bums are the ones that need to be torn into by Nigerians if we ever expect anything to work properly in this country. But they're allowed to sit pretty and enjoy without pressure.

1Alex:
I understood you but my analogy is not based on the subsidy itself but on their reluctance in keeping local refineries functional which resulted in the subsidy, now they want us to suffer their inefficiencies by just removing the subsidy.

If you want refineries to be functional, you have to have subsidies removed....because that means that marketers would earn massive profits...and so would refineries.

That's why subsidy was removed in time for Dangote refinery to take advantage of it. The refinery has to earn profit to run well...or else.

NSNO:
5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

Agree with you but your theory about competition is false
It has not worked with cement. Rather they act like A cartel and manipulate prices

Let's wait for reality to set in before dishing out hopes and dreams...
Wahala for who no understand Nigeria

Your points make sense. Let's hope things don't get worse than it already is.

NSNO:
5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

It's bad, there are things they should fix first before removing fuel subsidy

NSNO:
5 reasons why I think PMS subsidy removal will not be as bad as people think:
1. Diesel is the main fuel used in haulage. Since we longer enjoy subsidy on diesel, producers and transporters have already absorbed the increase in price.
2. Diesel is also one of the the main fuel used in large scale power generation by companies. As mentioned earlier, the increased cost have been absorbed.
3. NLG is the another fuel used in large scale power generation by companies and the price of gas is going down.
4. Our refineries are coming back online. Apart from Dangote refinery, there are repair works going on in our other refineries and the chairman of BUA is also building a refinery in Akwa Ibom. Multiple players mean competition and as we all know competition drives down prices of goods and services.
5. NNPC released a statement that they would soon start giving companies license to import PMS, thereby increasing competition in that sector.
Things will be hard for some time but PMS subsidy removal is one of the hard decisions we need to take to set this country on the right path.

At the bolded, haven't you heard that even with the coming on board of all the refineries, the price will not come down

Below is a statement from the NNPCL Group Chief executive officer, Mele kyari

“There is a notion that if the product is processed locally, prices will reduce. Let me make it clear that it is not going to change anything. If you produce locally, the refineries will also input the cost of production and other things and it will be sold at the current price.

1Alex:
if you are a salary earner, will you allow your boss to start cutting your salary because he wants to use the money to repair the company's faulty generator set. Meanwhile, the gen set was making money for him but he was squandering the money and refused to service the gen when due. Now he wants to cut more than half of your salary to fix the generator.

Horrible Analogy

OP dey talk A, you dey talk B

The op is actually correct. Prices of goods and commodities shouldn't increase significantly since manufacturing companies use diesel generators and diesel trucks are used to transport foods and commodities.
Only the transportation of people would be affected.
But trust Nigerians to capitalise on it to increase everything. Even telecoms companies that uses diesel and brt buses may increase their charges.