BlackTechnology:


Amount spent reduces but price remains the same.

aperture11:

This is the most contradictory statement I have heard in years. It defies logic and economic laws, if cost of production reduces, cost of commodity should reduce too in a free market economy. I don't need a degree in economics to know that. If you tell me that the cost savings is basically transmuted to reduction on subsidy paid, rather than reduction in pump price, it means that the Government should tell us how much that is what is happening to that savings.

In all, the insincerity of our Government to make our refineries work and the fact that we still pay subsidy on even products refined here is what never ceases to baffle me. Where does all these money go?

The answer to that question is very glary to you and I, if we are sincere.

revolt:
he wasn't increasing pump price, he was reducing the the amount subsidzed by govt ie if the cost of fuel is 100per litre n govt is payn 50 the balance is what u u call pump price! So if the govt decides to pay 30 out of the 100 it means we have to pay 70, so the govt ddnt increase fuel price but reduced its stake in da subsidy. Go n read up the subsidy pls.

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

yIkEsDuDe:


..Read through many dictionaries you'll find that your choice is regarded as illogical and incorrect..

pazienza:


If whoever that is importing would not reduce the price,then the reasonable thing to do would be to revoke their licence and give it to to those willing to reduce the price.

Etinosajay:


Bullsh*t. There aint no subsidy as far as I'm concerned. Because OBJ never once mentioned subsidy as I can remember. I believe this is just some book of lies to gather money for some people

revolt:
cos deregulation isn't child play or hasty implementations. It took obj 8yrs to fully privatise our communications sector, gej has even attempted more ie power, aborted subsidy removal, auto industry revolution etc and yes petroleum is one sector we can't be leaving docile cosd its costn us trillions, its nt employing youths as compared to It, and its a haven of corruption and greedy waste. A thriving petroleum sector will guarantee a very extra buoyant middle class. Its spiral effect is undisputable.

rman:


The BlackTechnology dude is half smart. His logic is completely flawed.
He is basically saying the relief from low oil prices should be on subsidy payments alone. In essence, all the burden should be on the people. Government just needs to keep more money for herself so they can loot more.

When confronted with the diesel example, instead of him to admit he is wrong, he shamelessly tried to blame the marketer's.

We are our own worst enemy, not the government.

Demdem:

[b]
This has always been my argument against proponents of deregulation of the sector. We have tried it for diesel and it's not working, why on earth can someone convince me that it will work for petrol.

These lot will like to hinge their hopes on the telecommunication sector where healthy competition brought prices down. This work for them then because most of the investors were foreign.
It will be foolhardy to compare them with our local oil merchants that are high profile politicians who will just form a cartel and determine price they deem fit.
Importing is a big disservice to this nation and we Av a useless govt that doesn't care about our local refining capability.
The same thing is currently happening in the cement sector where big players in the industry jointly sat together and agree on price of cement and some folks will call that competition. Bullshit, that's a cartel.

On a small scale, we have tried deregulation of diesel and instead of marketers competing between themselves, they are forming cartels amongst themselves further improvising Nigerians and the govt is looking aloof. If the benefits are not gotten from diesel under this govt, we can never get the same for petrol. This isn't rocket science but common sense.[/b]

Bayswater:
That's Fashola playing to the gallery again saying rubbish under the pretence of not being an economist. He has economic advisers, he could have sought their advise before displaying his hypocrisy. That a barrel of oil is now $65 does not mean the cost of producing it or bringing it to the pump will change. Pump price has not been reduced in the UK, usa and across Europe. His attempt at using a bushmeat seller's logic has failed woefully.

Even if we refine the crude oil here, the cost if producing a barrel of oil would still be more than $65 per barrel. Even the average cost of producing the shale which people consider cheaper, is above $70 per barrel. As long as we don't refine crude here, it would take months for us to see reduction in pump prices.

Our greedy oil marketers too will not allow us feel the positive impact even when they start getting oil at reduced prices, they would want to maximise their profit.

Bayswater:
That's Fashola playing to the gallery again saying rubbish under the pretence of not being an economist. He has economic advisers, he could have sought their advise before displaying his hypocrisy. That a barrel of oil is now $65 does not mean the cost of producing it or bringing it to the pump will change. Pump price has not been reduced in the UK, usa and across Europe. His attempt at using a bushmeat seller's logic has failed woefully.

Even if we refine the crude oil here, the cost if producing a barrel of oil would still be more than $65 per barrel. Even the average cost of producing the shale which people consider cheaper, is above $70 per barrel. As long as we don't refine crude here, it would take months for us to see reduction in pump prices.

Our greedy oil marketers too will not allow us feel the positive impact even when they start getting oil at reduced prices, they would want to maximise their profit.

BlackTechnology:



GEJ is wrong not fighting this diesel cartel but deregulation stands


GEJ must fight cartels the way Roosevelt fought cartels.

We Nigerians must side the president against cartels

podosci:

There are three things in play, subsidy, exchange rate and crude price.
we are in a paradox, the price of crude went down, our exchange rate went up, the amount paid to subsidies fuel came down. Puting this three factors together......i just want to know, if the pump price of petrol would go up, come down or mantain status quoe

Bayswater:
That's Fashola playing to the gallery again saying rubbish under the pretence of not being an economist. He has economic advisers, he could have sought their advise before displaying his hypocrisy. That a barrel of oil is now $65 does not mean the cost of producing it or bringing it to the pump will change. Pump price has not been reduced in the UK, usa and across Europe. His attempt at using a bushmeat seller's logic has failed woefully.

Even if we refine the crude oil here, the cost if producing a barrel of oil would still be more than $65 per barrel. Even the average cost of producing the shale which people consider cheaper, is above $70 per barrel. As long as we don't refine crude here, it would take months for us to see reduction in pump prices.

Our greedy oil marketers too will not allow us feel the positive impact even when they start getting oil at reduced prices, they would want to maximise their profit.

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.

Bayswater:


It's actually good you've posted a link, so I'll let you do the math. The cheapest you can get a gallon of petrol in the usa is around 285/290 cents. The price of a gallon late October was around 315cents so we can say price of a gallon of petrol went down by 20cents per barrel. Here is the issue: we have almost 5litres in a gallon, so it is safe to say the price of a litre of petrol in the usa has actually gone down by 5 to 6 cents which is quite negligible. Will you now call that reduction when compared with the price of a barrel of crude oil that has reduced by almost $35/3500cents?

thegoodjoehunt3:
A functioning refinery should be the criteria to judge the government of Nigeria. Every government that failed to set up refineries in this country is a FAILURE.

BlackTechnology:



Now listen to this guy view point to understand why I blame the oil marketers and will not defend GEJ for not doing anything about it.







God bless you


GEJ is wrong not fighting this diesel cartel but deregulation stands


GEJ must fight cartels the way Roosevelt fought cartels.

We Nigerians must side the president against cartels

VolvoS60:


^^^^
I see.

The GEJ administration didn't need my help to 'deregulate' or 'remove subsidy'. The GEJ administration didn't need my help in deciding who to issue fuel import licences to. But it now needs my help to 'fight the cartel'.

You clearly think we are children.

We are watching.

revolt:
omo this is real rocket science sha!! Anyways Us doesn't import pmc they refine so competition and govt policies can affect pricing in a way it won't affect profits.

Nigeria imports .

Demdem:


I want to highlight three things here from ur post.
1) The price of oil has been falling from June-July this year.
2) devaluation of the naira was a recent development. Weeks ago.
3) amount paid as subsidies are normally budgeted for.

podosci:

1 the price of oil has been falling since june but never fell below our oil bench mark of 98$ untill recently
2. devaluation of the Naira is foolishness and to me its a stupid policy,,,,why deceive oneself and devaluate a currency when in reality the value of the currency has weakend, Economist put the real value of Niara at nearly 200.
althou am not talking of devaluation, am talking about our weaked currency due to the reduction in value of our major if nt only export produce
3. There is what we call budget devicit and supplus......buh the supplus money would probably be embezzeld.

But you didnt enlighten me on my Question, put all this factos together, what should happen to the pump price of petrol?

VolvoS60:


^^^^
I see.

The GEJ administration didn't need my help to 'deregulate' or 'remove subsidy'. The GEJ administration didn't need my help in deciding who to issue fuel import licences to. But it now needs my help to 'fight the cartel'.

You clearly think we are children.

We are watching.

Demdem:


The dude is finding it difficult to accept that Jonathan govt itself is culpable and conspires with these thieves to impoverish Nigerians the more.
They aren't sincere no doubt.