nairalanda1:


Nigerians earning mininum wage don't drive or own cars for the most part.

Plus, in the USA, they have working refineries because fuel is sold at a profit, and finally....prices for fuel vary across the US well well well.

Even that O.92 per liter is above N600 per liter.

Oga, give it up. My problem with you guys is simple. You do not want the petroleum sector to operate at a profit...so then how do you expect them to give you domestically refined fuel?

Price controls do not work.

You are free to disagree with me.

Whichakes it worse because they have to pay commercial transporters who have to earn a living. $0.92 is about N650 so if we compare price of gas, ours is about 77% of theirs. Now compare our minimum wage of N30000 which is about 1.7% of their $2400(1.7m approx.) Omo!!

I never mentioned price control in any of my submissions. If you check again, I actually did one rough calculation to show you that at N200/litre they can make a very decent profit provided they reduce corruption to its barest minimum.

nairalanda1:


Exactly.

Oh. If you agree that you don't aubsidise 100% of what you import then what have we been arguing about? I've said we should produce locally and eliminate corruption and there'll be no need for subsidy. And the price will still be no where near where it is right now.

Lower prices encourage smuggling but severe punishment of offenders will discourage it. Simple na.

It's been nice conversing with you anyway. I wish our leaders deliberate on issues half as much. Last last, na our Nigerian prayer we go still pray... It's well!

Goodnight

emorse:

Whichakes it worse because they have to pay commercial transporters who have to earn a living. $0.92 is about N650 so if we compare price of gas, ours is about 77% of theirs. Now compare our minimum wage of N30000 which is about 1.7% of their $2400(1.7m approx.) Omo!!

I never mentioned price control in any of my submissions. If you check again, I actually did one rough calculation to show you that at N200/litre they can make a very decent profit provided they reduce corruption to its barest minimum.

Well, you support subsides, and therefore, price controls by extension.

Also, fuel cannot be sold for N200. Not when there are taxes, transport costs, etc to be paid.

Anyway, we won't know how much it costs to refine fuel here in Nigeria until Dangote releases his costs, as do other refineries here in Nigeria.

emorse:

Oh. If you agree that you don't aubsidise 100% of what you import then what have we been arguing about? I've said we should produce locally and eliminate corruption and there'll be no need for subsidy. And the price will still be no where near where it is right now.

Lower prices encourage smuggling but severe punishment of offenders will discourage it. Simple na.

It's been nice conversing with you anyway. I wish our leaders deliberate on issues half as much. Last last, na our Nigerian prayer we go still pray... It's well!

Goodnight

And I say quite simply that fuel refining is a business, not a NGO giving free stuff

Good night to you too.

nairalanda1:


Well, you support subsides, and therefore, price controls by extension.

Also, fuel cannot be sold for N200. Not when there are taxes, transport costs, etc to be paid.

I showed you a rough calculation though. You never made any reference to it.

nairalanda1:


And I say quite simply that fuel refining is a business, not a NGO giving free stuff

Good night to you too.

It's like you deliberately ignore the parts where I talk about them making decent profits at prices even at much lower prices. I wan dey suspect you this guy. lol

It's been a nice conversation by the way.

emorse:

It's like you deliberately ignore the parts where I talk about them making decent profits at prices even at much lower prices. I wan dey suspect you this guy. lol

It's been a nice conversation by the way.

Because you have no right to set prices for businesses...and neither do i.

And because you do not know how much it would actually cost to refine a liter of fuel...and neither do i, and until we have that figure, any discussion on the matter is hypothetical.

emorse:

I showed you a rough calculation though. You never made any reference to it.

Based on a hypothetical...not on reality.

Get the actual figures we will when refining takes off here soon.

lexy2014:


All the corruption in Nigeria has been reduced because subsidy has been removed

But the government say it will subsidise transport and fertiliser?

If they do, will corruption attack there ?

nairalanda1:


Because you have no right to set prices for businesses...and neither do i.

And because you do not know how much it would actually cost to refine a liter of fuel...and neither do i, and until we have that figure, any discussion on the matter is hypothetical.

nairalanda1:


Based on a hypothetical...not on reality.

Get the actual figures we will when refining takes off here soon.

This is 2023, use the internet bro. I gave you a link earlier. You can find lots more yourself.

AK481:


But the government say it will subsidise transport and fertiliser?

If they do, will corruption attack there ?

Your question funny but na wetin me and nairalanda1 dey argue since

nairalanda1:


That's because we never earned enough in oil revenue to satisfy all of us.

We produce just as much oil as Libya and Qatar, and both Libya and Qatar have 8 million and 2 million approximately...compared to our 200 million people

We also produce about one tenth to one eight of the oil Saudi produces, and Saudi has 40 million people compared to our 200 million.

Plus, things that we should use taxes for...we use oil money for.

Note: I did not say there is no corruption. E dey well well...but what corruption does is make our already bad situation worse.

Seun should put total ban on illiterate from writing on Nairaland...... your literacy level is disgusting to say the least.



Everything that is advantages to other climes is a curse in Africa.... Nigeria is the headquarters of the brainless citizens of the world......is high population not an advantage in America, China, Indian etc.......why is it a negative factor in Nigeria?

nairalanda1:


If you were selling bread that cost you N1000 to make one loaf at N1200 a loaf, would you agree to government telling you to sell that loaf at N200 to help the poor? While they compensate you with N500, meaning you lose N300?

Be serious.

Rather, if you sold 10 tubers of yam at #1000 and then buy 1 rap of Pounded yam that weigh 0.1 lb at #500.............this the actual Nigeria oil deal scenario...

nairalanda1:


Yeah, and the problem with subsidsing importation of fuel is simple. The cost differential between the subsidised price and the price of transporting and producing fuel always rises...which leads to a rise in the cost of subsidizing fuel

This eventually means we spend more and more of our earnings subsidisng fuel , and at the end of the day, we not only lose money, but we have to borrow to cover the resulting deficit.

At the end of the day, we are borrowing to pay for subsides, AND borrowing to pay for the normal budget.

Also, subsidies discourage local refining...which is why it had to go now that Dangote refinery is ready...because of the potential losses.

You are free to disagree with me, thank you.

Subsidy in Nigeria is actually the Dollar to Naira exchange rate......

Price of pms did not increase anywhere....but the naira is losing value against the dollar....hence the increments in subsidy.....

You don't actually understand economics........stop embarrassing yourself in public.

Dangote refinary is a private business, it is set up for profit.......and profit, shareholders, foreign partners and debt services shall be the basis for the company policy.......not Nigeria predicament.....which a choice anyway.

nairalanda1:


Also, a big problem I have with you Nigerians is that you guys think that everything is too expensive, and that prices must be beaten down.

Having worked in the private sector for most of my working life...and having had my salaries and at one point my job security threatened by people not paying my employer on time because 'it is too expensive'....

Plus, at the end, we are , for the first time since 1973, learning how much fuel really costs. And it is a shock, but eventually, economics would do its thing. Of course, prices won't return to the low levels it used to be, but it would fall nonetheless.

Remember GSM? So expensive in the begining, then competition brought prices down.

Nigeria know how much fuel is......since 1967.....

Use Kerosene and Diesel as a reference not GSM........Nigeria government killed Nitel for a foreign private company that extorted and is still extorting her citizen as we speak........the sad aspect is that South Africa won't oblige any foreign private company such....

They Bastardized NEPA before dashing it out in the name privatization to private individual that jettison the terms of the deal one of which is prepaid metering......and yet for how many years now, nothing has changed....in the power sector

Dangote refinary is the same scenario......you earlier asserted that subsidy payment is what deprived the Nigeria nation the initiative to build refinaries....the same government invested an amount that; if you add some money, would build new refinary into Dangote refinary, and in addition still lend him money for the project....... Dangote refinary is a already monopoly.....I pray he won't hold the country to ransom.

I can go on and on

ijustdey:


https://sunnewsonline.com/fuel-subsidy-removal-cost-of-living-petrol-rates-in-oil-producing-countries/

Woow you did a lot of work here kudos

LadyExcellency:


Our current prices are inflated compared to our neighbour's official cost of petrol.

Cutting the peñis and sealing the vargîna is not a solution to curb high libido.

The government is not governing through various agencies that are required to do their jobs of stopping the abuse of social welfare hence they want them removed. The ultimate aim of any government is to make life easy and dreams achievable for the citizens.

Nigeria do not have institutions, that's the best solution for now. Institutional reforms can take longer time

ijustdey:


https://sunnewsonline.com/fuel-subsidy-removal-cost-of-living-petrol-rates-in-oil-producing-countries/

Is that the only thing they can compare with those countries. in those countries, see below list of other things they should aslo put in place if they want us to pay for petrol at same price

1. Regular Power Supply:Citizens dont run Generators like we do in Nigeria, because theres regular power supply, I have in my house 3 Gen Set, do you know the cost of the gen set and the regular purchase of petrol to make sure i have power at home.

2. Good Transportation system: Good Bus and taxi system, Trains, in thise countries not everyone do have cars and even if they do sometimes they use the public transport because the system is good.

3. Good Infrastructures and many more.

When you have above things in place the some people may not even see the need to buy petrol because theres always an alternative, stop comparing prices everyday.

AK481:


But the government say it will subsidise transport and fertiliser?

If they do, will corruption attack there ?

According to the nigerian economic theory of Subsidy and corruption, anywhere there is subsidy there is corruption. Anywhere subsisdy is removed, corruption stops. Therefore, if the government subsidies transportation and fertilizer, corruption will attack there

Venezuela N2 per liter. Hmmmm

.

nairalanda1:
Some of those countries also have massive fuel smuggling issues.

This is highly false. Go try smuggle fuel for Saudi Arabia then see the nature of the things your body go collect.

Azuwonder:


This is highly false. Go try smuggle fuel for Saudi Arabia then see the nature of the things your body go collect.

I wish it was false

But apart from Saudi, Libya, Angola and Venezuela as well as Iran all have smuggling issues.

I even have a post on the matter with links
Check me profile

lexy2014:


According to the nigerian economic theory of Subsidy and corruption, anywhere there is subsidy there is corruption. Anywhere subsisdy is removed, corruption stops. Therefore, if the government subsidies transportation and fertilizer, corruption will attack there

If the government is a full capitalist state and no social function, why do you need a government to redistribute wealth?

emorse:

Your question funny but na wetin me and nairalanda1 dey argue since

My brother ,they always drop common sense in the ocean when arguing .

AK481:


If the government is a full capitalist state and no social function, why do you need a government to redistribute wealth?

Whats the relationship between the above and my post?

This subsidy thing brings out the argument in people.

lexy2014:


Whats the relationship between the above and my post?

Hmmm

nairalanda1:




Venezuela is in a big mess.

A large percentage of its people are walking with their feet to the USA and other countries to make money. Their currency is severely worthless, and they are literally losing money every year.

same way it happened in Nigeria too

Balogunodua:

Venezuela you say?


You most be high on cheap weed.

you don’t know what’s going on in 🇻🇪. If they give you the visa of Venezuela 🇻🇪, you will port to that place without coming back to Nigeria

9jahotblog:
same way it happened in Nigeria too

It is called Dutch disease.

Ours is a bit better because we still produce some things. Venezuela imports everything.


Still both Nigeria and Venezuela are broke nations because Dutch disease


Venezuela is just Nigeria if it was a Latin American nation

9jahotblog:
you don’t know what’s going on in 🇻🇪. If they give you the visa of Venezuela 🇻🇪, you will port to that place without coming back to Nigeria

You would just be porting to a slightly worse version of Nigeria

Infact hundreds of thousands of Venezuelans are japaing well well. US dollar is basically the main currency there