BlackTechnology:



You guys supported the cartel when GEJ wanted to deal with the subsidy thieves.

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]

BlackTechnology:



You hurt my feeling by saying I am not sincere


Go through my posts and you will see that I condemn bad economic policies

revolt:
yet fg wanted to remove it ie the subsidy tht allows for siphoning of trillions of naira. How do u xplain a thief closing his own doorway? Your logic

barcanista:
What iis the %Change in the Price of the Dollar and what is the %Change in the price of crude oil? My friend this is a very simple economics.

At price $100 per barrel, government spends 1trillion on subsidy bills. Naira/Dollar was N165.

At price $70 per barrel, government cannot justify spending the same 1 trillion on subsidy bills, despite the devalue of the naira to 178 per dollar. The %Change can never justify it.

We have 30% reduction in the price of the crude oil, with a 8% increament in the price of the dollar. The disparity is just glaring. The price of petrol must go down or the appropriation on subsidy must go down should the price of petrol remain constant.

Etinosajay:


By your logic, a thief who resigns from stealing in d open, but coerces u to hand it to him, isn't that d same stealing? How by your logic can u prove that subsidy really exists? Because I don't

adconline:

Naija prices are based on crude oil prices set at New York Mercantile Exchange. Refining cost is constant, thus, Naija importers are paying less.. Yar'dua slashed prices and Naija didn't go broke.. We have a profligate govt that only knows how to spend but doesn't know how to cut their spending or give people a replieve.

majekdom2:
I dont understand what you mean by it took obj 8 years .... I started hearing of gsm august 2001 . bro , it is not that this thing is not childs play , it is this same corrutption we been talking . there are cabals seriously enriching themselves by importing petroleum , hence would not want functional refineries.the multinationals once complained the contract approval period in Ngeria alone delays investment , it takes about 4 years.it has to o thu dpr , napims , ministry , senate and so many of these parastatals while in angola it is just about 4 months. its time all this stopped . other african countries are fast moving and yet we claim we giants. you can read on the heavy investments in kenya.

revolt:
so how do u propose to stop these cabals? Bearing in mind they're operating with legitimate licences.. U suggest govt keeps paying them ryt? because u guys want subsidized fuel. Na wa. O

synergycom19:
Why are guys arguing this matter like senseless people? Why did LATE PRESIDENT YAR'ADUA REDUCES THE THE PUMP PRICE PRICE FROM 70.00 TO 65.00 per litre? It's was reduced because the selling price of crude oil also went down. That's a government in charge,not this caricatures

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.

majekdom2:
No , I dont want the govt to keep paying them because there was no subsidy in the first place . we all know how likes of obat , jimoh ibrahim " fleet oil " and loads of them turned bigger millionaires because of this subsidy stuff.In all truth and transperency , an end can come to all these if our refineries can function ,I know you may say it will be delayed , there is no cause for delay if not because of this same corruption we talking and so it takes a true govt which is ready to operate in truth and accountability to do this.

kaycid77:


Barcanista I want to school you.... You know little about Global Energy business, Now do you know that the real price of petrol per little is NGN 140 while crude is $100, but Gov decided to pay ur NGN 43, now crude is $70 , by simple algebra( as an Engineer) petrol supposed to be sold for NGN 98 , so even if we are refining the crude Gov is subsiding NGN 1.00 ( one naira) for you.... before now dollar to Naira was NGN162 and its now NGN 178, thats an increament of NGN16.... thats a multiple effect of one tenth of the original value( NGN162). so if federal government was selling petrol at 97 Naira It means there is a multiple effect of additional one tenth which is NGN9.7, so if u add this to NGN98 =
NGN107.7.... So in all Feg Gov is still subsiding NGN10 per litter for you......

CC: tits , Demdem, revolts, omenka

revolt:
ure govt cudnt successfully run a courier coy, ie carry letters from lagos to ogunstate, and you're hoping they operate a refinery.
List the sectors that are most successful in nigeria( telecoms, banking, it, paid Tv.transportation) how many are controlled by govt.

Have u heard of federal xter, quota system etc..go read my guy

deeflamez:


I've been reading you up from your first post on this thread and was satisfied when someone responded to your false claims. I don't care where you're getting your information from, but presently in Canada and USA, there's been a drastic drop in the price of gas, the best drop so far, I know this cos I drive to school and work everyday with a good difference spent per gallon/litre of gasoline. I don't intend to argue with you, it's no point.

The President and his entire cabinet have a million and one questions to answer and resources to account for. Don't be hoodwinked

xandy84:
The pump price has been reduce in chicago... I know that for sure

majekdom2:
where did you read in my post I said the government should run refineries . I said only an accountble govt will be ready to privatise the refineries , read again ?

revolt:
t but gejs govt wanted to remove the subsidy whch is a prerequisite for deregulation and privatisation, so he was ready to privatise the sector una say no

revolt:
t but gejs govt wanted to remove the subsidy whch is a prerequisite for deregulation and privatisation, so he was ready to privatise the sector una say no

majekdom2:
it was partially removed and we were told we would see changes in 4 years according to the economist so it was partially removed and we were told we would see changes in 4 years according to the economist so what do you expect Nigerians to do now . isnt it same scam.

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.

kaycid77:


Barcanista I want to school you.... You know little about Global Energy business, Now do you know that the real price of petrol per little is NGN 140 while crude is $100, but Gov decided to pay ur NGN 43, now crude is $70 , by simple algebra( as an Engineer) petrol supposed to be sold for NGN 98 , so even if we are refining the crude Gov is subsiding NGN 1.00 ( one naira) for you.... before now dollar to Naira was NGN162 and its now NGN 178, thats an increament of NGN16.... thats a multiple effect of one tenth of the original value( NGN162). so if federal government was selling petrol at 97 Naira It means there is a multiple effect of additional one tenth which is NGN9.7, so if u add this to NGN98 =
NGN107.7.... So in all Feg Gov is still subsiding NGN10 per litter for you......

CC: tits , Demdem, revolts, omenka

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.