jimmy101231:
Then how about the changes in dollar to Naira how does it affect this cos I know it will

jimmy101231:
Then how about the changes in dollar to Naira how does it affect this cos I know it will

BlackTechnology:



Do Ghana subsidize her fuel

Obiagelli:

The lazy way out is subsidy most go. Sensible countries will refine and export finished products.

nonen:
Yea. Fashola has the local logic correct. However there's an expected increase in fuel pump price due to the dollar-naira exchange rate disparity. Since the naira is losing weight against the dollars, the importers will have to pay more to import the product. Fashola logic would have worked only if we refine the crude here.

Collynzo9:

Without subsidy you will be buying petrol at N300 per litre minimum.
Refining here in Nigeria wouldn't even change much unless the crude oil is subsidized before selling to the refineries.
The likes of Quatar, Venezuela etc subsidize even the crude oil they refine in their countries, that is why their citizens get them cheap.

saintopus:
. You cannot eat your cake and have it.

lakpalakpa:
1. Falling Oil Prices: Fashola Asks FG To Cut Pump Price

2. Governor Fashola Urges Federal Government to Cut Petrol Pump Price

These are the titles from the sources posted by the OP. Where did "ignorantly" come from??

PDP Mods in action I guess.

VolvoS60:



^^^^
I challenge you to substantiate your claims above. Anyone can make the claims you have made.

More to the point, are you telling us with a straight face that it does not matter if Nigeria refines petroleum products locally or imports them? Your second sentence says this. Do you really mean what you are saying?

As I have said in so many posts on this matter, what is the cost of drilling and refining a litre of PMS, DPK or AGO here in Nigeria? And how does that cost compare with the cost of a litre of imported PMS, DPK or AGO?

Surely you can provide answers to my questions, can't you?

emmatok:


The issue here is not subsidy, but our refining capacity.

There is no subsidy in Diesel yet the price is not dropping in Nigeria.

Bawss1:


Pump price has dropped in the US (http://www.nytimes.com/2014/11/05/business/oil-prices-continue-to-plummet.html?_r=0) what are you talking about?

lakpalakpa:
1. Falling Oil Prices: Fashola Asks FG To Cut Pump Price

2. Governor Fashola Urges Federal Government to Cut Petrol Pump Price

These are the titles from the sources posted by the OP. Where did "ignorantly" come from??

PDP Mods in action I guess.

saintopus:
If subsidy was removed, we would have been enjoying the drop in oil prices. But the issue is that, when the government go ahead with that plan, Lagosians will "occupy Ojota for six months ". You cannot eat your cake and have it.

BlackTechnology:




Are you sure there is no drop in diesel price.? If yes


Then the greed of oil marketers is at work.


The best solution is to build more medium scale refineries or convince some oil marketers to sell cheaper in order to seize the market which will force others to cut down price.

DesChyko:


Ignorantly because the importers now have to pay more to import the finished products. Remember the naira dropped value alongside the dollar.

nonen:
Yea. Fashola has the local logic correct. However there's an expected increase in fuel pump price due to the dollar-naira exchange rate disparity. Since the naira is losing weight against the dollars, the importers will have to pay more to import the product. Fashola logic would have worked only if we refine the crude here.

saintopus:
If subsidy was removed, we would have been enjoying the drop in oil prices. But the issue is that, when the government go ahead with that plan, Lagosians will "occupy Ojota for six months ". You cannot eat your cake and have it.

BlackTechnology:



But also the price of refined products has fallen.


In other words both are affecting each other.

revolt:
oga whoever is importing diesel will not reduce his price, cos it profitable. If we were refining then wed hve a case but infact, its even more expensive to import now with devaluation of naira. The subsidy must go

Obiagelli:

The lazy way out is subsidy most go. Sensible countries will refine and export finished products.

emmatok:



There is no drop in Diesel price,yet diesel buyers don't enjoy subsidy.

BlackTechnology:



I must agree with you that it is either FG is ignorant of this discrepancy or they have a hand in it

I won't defend Jona on this one if he fails to explain why it is so.

olillywales:
www.metronaija.com/governor-fashola-urges-federal-government-to-cut-petrol-pump-price/

http://leadership.ng/business/393416/falling-oil-prices-fashola-asks-fg-cut-pump-price

Collynzo9:

You are just complicating matters for yourself unnecessarily, the issue is a very simple one. What is the cost of a barrel of crude oil in the market? At $65 per barrel, it means that you are paying about 50 cents for one litre of unrefined crude oil.
That is almost N100 even without the cost of refining and transporting it considered, you can do the rest of the math yourself.
Yes Venezuel and Quata subsidizes the petrol the sell to their citizens even though they refine it themselves. The wouldn't get it cheap if the allow market forces and cost of refining come into play.

Collynzo9:

Without subsidy you will be buying petrol at N300 per litre minimum.
Refining here in Nigeria wouldn't even change much unless the crude oil is subsidized before selling to the refineries.
The likes of Quatar, Venezuela etc subsidize even the crude oil they refine in their countries, that is why their citizens get them cheap.

delfol:
This will have been possible if Nigerians had not stupidly protested against the removal of subsidies. Fashola should not forget that 97 is at a subsidised rate to nigerians.

chiefinalowo:
Tanzania has just cut petrol pump price.
I don't think Tanzania has a drop of oil and gas.
There is need for President GEJ to do the needful.

BlackTechnology:


Subsidy means you pay a fraction of the real cost.

Eg a car cost 100naira and I promise to pay 30naira for you. How much will you pay .? 70naira

Now if the price of the car reduces to 80naira, how much will I pay for you.? 10naira.


So in essense govt will spend less on subsidy

emmatok:


The issue here is not subsidy, but our refining capacity.

There is no subsidy is Diesel yet the price is not dropping in Nigeria.

Scout60:


But the importer pays higher in dollar

DesChyko:


Ignorantly because the importers now have to pay more to import the finished products. Remember the naira dropped value alongside the dollar.