nduchucks:
As os Dec 16, subsidy was N.4.48 per litre. Today we are told that it has dropped to 90kobo/litre. Iweala told us a few months ago that if the price of crude oil drops to $60/barrel, there would be no need for subsidy.

So I ask these rogues, why the heck are they still paying the subsidy thieves billions of naira when the price of oil has dropped to $56/barrel without any sign of rebounding in the next few years?

GEJ will act clueless once again and will say nothing about this, or order NNPC to terminate the subsidy. Imagine the goodwill GEJ will gain by announcing the termination of these subsidy payments along with a cut in the price of petrol & Kerosine.

ducii:


The subsidy will be removed

Collynzo9:
I don't mind paying N 98 for one litre, they should remove the subsidy entirely.

90 kobo per litre still runs into billions in total, why not remove the thing entirely and put the billions to better uses?

sunnyshayne:
In any situation, someone somewhere is busy subsidising himself and family to the detriment of Nigerians

Collynzo9:
I don't mind paying N 98 for one litre, they should remove the subsidy entirely.
90 kobo per litre still runs into billions in total, why not remove the thing entirely and put the billions to better uses?

ducii:


I agree

LRNZH:




[b]Let me tell you guys what they're afraid of.
It is 98kobo per liter because oil price is around $56 per barrel.
However, if they remove subsidy and oil prices climb back up, fuel prices will similarly climb and we may end up paying up to N 150 per liter for PMS. This is because we import most of our fuel needs and imported fuels are subject to global oil price. That will cause chaos in this country.

The ideal solution was missed by the GEJ gov't. In January 2012, we had the #OcuppyNigeria protests and the govt promised two refineries.

Fast forward to today and not even TAM or meaningful privatisation of the refineries have occured. We are not refining anything close to meeting our national fuel requirements.

Local refining is the only shock prove solution to swinging oil prices as we refine our own crude, and not buy from the international market.
You can't be farming yam and be buying pounded yam at exhorbitant price. You pound yours.

Another point is maybe the FG is the cabal and won't want subsidy to go away. Afterall, it is a massive cash cow for alot of vested interests.[/b]

LRNZH:




[b]Let me tell you guys what they're afraid of.
It is 98kobo per liter because oil price is around $56 per barrel.
However, if they remove subsidy and oil prices climb back up, fuel prices will similarly climb and we may end up paying up to N 150 per liter for PMS. This is because we import most of our fuel needs and imported fuels are subject to global oil price. That will cause chaos in this country.

The ideal solution was missed by the GEJ gov't. In January 2012, we had the #OcuppyNigeria protests and the govt promised two refineries.

Fast forward to today and not even TAM or meaningful privatisation of the refineries have occured. We are not refining anything close to meeting our national fuel requirements.

Local refining is the only shock prove solution to swinging oil prices as we refine our own crude, and not buy from the international market.
You can't be farming yam and be buying pounded yam at exhorbitant price. You pound yours.

Another point is maybe the FG is the cabal and won't want subsidy to go away. Afterall, it is a massive cash cow for alot of vested interests.[/b]

Nobleval:
If you refine your crude then you needn't talk about subsidy. The amount spent on this subsidy already could have built many refineries for Nigeria! I don't know why our leaders and policy makers are so stup!d. It makes no sense to me.

Collynzo9:

Dangote and Orient refineries are being built.
As for the prices, they can always bring back the subsidy if crude oil prices increases, which isn't very likely anyway.

ducii:

Dangote's refinery is coming in 2016, they are already hiring. A friend of mine went for the interview.

Nobleval:
If you refine your crude then you needn't talk about subsidy. The amount spent on this subsidy already could have built many refineries for Nigeria! I don't know why our leaders and policy makers are so stup!d. It makes no sense to me.

ducii:


it cost more than 97kobo a litre to refine crude, that is why you have the subsidy in the first place

LRNZH:




It took the Govt 5 years to do a lazy job which is giving licenses to private folks to build refineries. It is just a license.

A more serious gov't would have either finished a turn around maintenance on all 4 refineries by now or worked out a partnership with private firms for same to happen.
By now, Nigeria is supposed to be refining 100% o her fuel needs

Once Dangote and Orient refineries come on board, those four NNPC refineries will either be abandoned or sold for peanuts.

Restoring adequate local refining capacity is supposed to be one of GEJ's first term achievements. He is too slow for alo of people who know what the problems of these country are.

LRNZH:




[b]Nobleval is right.

We pay subsidy because the cabal fuel importers buy fuel at international price which is dependent on oil price. The foreign refineries buy crude at international price and refine it, then sell the refined products- fuels, petrochemical feeds, bitumen at a markup to make money.

But the Nigerian gov't in the past, felt that as an oil producing country, the masses should not be paying so much (international rates) for fuel even if our refineries are not working. So the govt fixes fuel price lower than the import value and pays the difference including profit to the cabal importers. Morever, te givt always felt that our refineries no working is just a temporary issue hence fuel imporation and subsidy as a stop gap.

But with local refining especially by the govt, we decide how much we want to sell our own crude to our own refineries. However, I am a bit skeptical about privately owne local refineries because the advantage may be eroded.

If they sell crude to Dangote or Orient at international rates then we don't benefit from local refining as stated above except the associated job creation.[/b]

ducii:


I agree with you on GEJ being slow, but the issue of a turn-around maintenance on the NNPC refineries is a no no, not with all the corruption that has marred that sector.

I think when the private refineries come in, it will help us stop this subsidy thing, because i can assure you today that those guys will not sell their refined petrol at 98 kobo, mark my words.

LRNZH:


That excuse irks me. If I am President, there are key projects that will be directly under the presidency or have weekly presidency reporting. Let me see that bastard's son that wants to steal.
Power generation is one. Refineries TAM is another one. If they want to stamp out corruption in specific projects or key sectors, they can. General corruption is what needs more work.

Honestly GEJ lacks the vision for effective leadership. Maybe he has the good heart and intentions but the capacity is lacking. I'm sorry if I hurt anybody's feelings but I'm saying the truth from my observations in over 6 years of his public life.