A friend just called me now that NNPC filling stations have just increase their pump price...meaning we in Abuja would be buying fuel at #511.

This is another way of sending multiple people into ingratiating poverty.

Whata country.

Nice2023:
A friend just called me now that NNPC filling stations have just increase their pump price...meaning we in Abuja would be buying fuel at #580.

This is another way of sending multiple people into ingratiating poverty.

Whata country.

Yeah it is painful...but if we kept the subsidy, we would be paying for fuel at the prices the IMF sets...which would make this N580 look like chicken feed.

The result of stolen bread.
Imagine and car theif claiming he will maintain the stolen car for the owner. The result will be a catastrophy.

Well. Subsidy had to go. Buhari already with the approval of the Senate kicked it to the curb. Tinubu is not just going to re-instate it.

nairalanda1:


Yeah it is painful...but if we kept the subsidy, we would be paying for fuel at the prices the IMF sets...which would make this N580 look like chicken feed.

You say 580 per liter is chicken feed?🥶🥶🥶🥶

muhammaduyusufu:
Well. Subsidy had to go. Buhari already with the approval of the Senate kicked it to the curb. Tinubu is not just going to re-instate it.

He is still paying the subsidy ooo

baralatie:

You say 580 per liter is chicken feed?🥶🥶🥶🥶

You want to pay for fuel at IMF HQ and People's Bank of China HQ respectively?

Ok o.

At the moment, we cannot keep borrowing to pay for subsidy. Almost all our revenue is going to feed that monster.

baralatie:

You say 580 per liter is chicken feed?🥶🥶🥶🥶

511 it was an error

nairalanda1:


You want to pay for fuel at IMF HQ and People's Bank of China HQ respectively?

Ok o.

At the moment, we cannot keep borrowing to pay for subsidy. Almost all our revenue is going to feed that monster.

First you should ask what lead the fg to get itself into the borrowing trap.
It did not need to have found itself in that trap but the cabinet and supporters allowed itself into these loan traps.
The issue of the subsidy removal is even as a result of miscalculation by the fg and nnpc because it wants to maintain a statusquo is negative to the fg.fg turned a blind eye because of one man.(I laffed back then)
Secondly between kerosene and petrol which is cheaper.
Summary the fg will still be paying subsidy and the effect of those unnecessary loans will still be affecting the fg.
So it is not about the president falling into the trap of problems deliberately creating by govts before it

baralatie:

First you should ask what lead the fg to get itself into the borrowing trap.
It did not need to have found itself in that trap but the cabinet and supporters allowed itself into these loan traps.
The issue of the subsidy removal is even as a result of miscalculation by the fg and nnpc because it wants to maintain a statusquo is negative to the fg.fg turned a blind eye because of one man.(I laffed back then)
Secondly between kerosene and petrol which is cheaper.
Summary the fg will still be paying subsidy and the effect of those unnecessary loans will still be affecting the fg.
So it is not about the president falling into the trap of problems deliberately creating by govts before it

Subsidy is a part of the reason why we borrow.

Subsidy...which covers the losses made from selling fuel below its production and transport costs....grows when the difference between the production and transport cost, AND the price set by government grows...which happens when crude oil prices rise.

So, every year, government takes more and more money from our revenue from selling crude oil to pay for subsidy...complicated by the fact that fuel consumption in this country rises year in and out...(and let's not forget the smuggling which makes matters worse).

Then another reaosn why we borrow is because oil prices are not where we need them all the time. As at 2020, for us to have a balanced budget, oil has to be at $133 a barrel. In 2012 it was $122 a barrel. In 2017 it was 139 a barrel. (It is called the fiscal breakeven price).

That is why Buhari's APC has failed . They were supposed to diversify the economy AND improve our tax to gdp ratio in response. Failed at both. Ditto remove subsidy. Delayed it till now.

IT IS ALL SHAKARA. WHEN THEIR SALES DROP AND THEIR BUSINESS IS COLLAPSING, THEY WILL DROP THEIR PRICES TO BELLOW WANT.
FUEL DEALERS ARE POLITICAL RADICALS.

nairalanda1:


Subsidy is a part of the reason why we borrow.

Subsidy...which covers the losses made from selling fuel below its production and transport costs....grows when the difference between the production and transport cost, AND the price set by government grows...which happens when crude oil prices rise.

So, every year, government takes more and more money from our revenue from selling crude oil to pay for subsidy...complicated by the fact that fuel consumption in this country rises year in and out...(and let's not forget the smuggling which makes matters worse).

Then another reaosn why we borrow is because oil prices are not where we need them all the time. As at 2020, for us to have a balanced budget, oil has to be at $133 a barrel. In 2012 it was $122 a barrel. In 2017 it was 139 a barrel. (It is called the fiscal breakeven price).

That is why Buhari's APC has failed . They were supposed to diversify the economy AND improve our tax to gdp ratio in response. Failed at both. Ditto remove subsidy. Delayed it till now.

Subsidy is not the reason why the fg fell into the debt trap.
It is the economic miscalculation of collecting loans in the ñame of limit of borrowing that put the fg in its mess.
Second it was seriously unable (due to recession and COVID) to curtail it's budget
Third it never solved it's dollar naira problem
And etc

baralatie:

Subsidy is not the reason why the fg fell into the debt trap.
It is the economic miscalculation of collecting loans in the ñame of limit of borrowing that put the fg in its mess.
Second it was seriously unable (due to recession and COVID) to curtail it's budget
Third it never solved it's dollar naira problem
And etc

It is a part of the reason why we take loans.

As put in the below quote from the guardian

Defenders of the current subsidy regime are of the view that subsidy removal would cause inflation, as higher costs of production would be passed on to the final consumers. This is true. However, the increase in the average price level would be proportional to the share of fuel in overall costs of production or share in consumer expenditure. Hence, for the low fuel-intensive sector, the direct impact of higher fuel prices would be low. However, the extent to which the increase in price from higher fuel prices can be passed on to consumers would depend on the nature of the elasticity of demand and supply for the product.

However, what many people fail to appreciate is that the current subsidy regime also fuels current inflation through higher budget deficits that are financed through ways and means and other forms of public debts. Most economists are in agreement that budget deficits financed through ways and means are inflationary. Current data shows that 95 per cent of government revenue is spent on payments of interests on government debts. It follows, therefore, that nearly all non-debt recurrent expenditure is financed by debt, including fuel subsidy. This is inflationary.

Source: Reflections on fuel subsidy regime.

Nice2023:
A friend just called me now that NNPC filling stations have just increase their pump price...meaning we in Abuja would be buying fuel at #511.

This is another way of sending multiple people into ingratiating poverty.

Whata country.

he