Let's start straight away.

I spent 12,000 to fill my tank last week.

Now, I will spend 34,000.

The car is Honda Accord 2007.

What are the tips to survive this insensitivity?

Tell us your tank capacity and how you plan to survive this hike.

Can the government just leave this subsidy for the masses sake and go after those stealing our oil?

Can the government just do partial removal of subsidy instead of total?

Meaningful contributions please.

Originakalokalo:
Let's start straight away.

I spent 12,000 to fill my tank last week.

Now, I will spend 34,000.

The car is Honda Accord 2007.

What are the tips to survive this insensitivity?

Tell us your tank capacity and how you plan to survive this hike.

Can the government just leave this subsidy for the masses sake and go after those stealing our oil?

Can the government just do partial removal of subsidy instead of total?

Meaningful contributions please.

bear with us

Vivianat:

Total revolution.

Hmmm.

Originakalokalo:
Let's start straight away.

I spent 12,000 to fill my tank last week.

Now, I will spend 34,000.

The car is Honda Accord 2007.

What are the tips to survive this insensitivity?

Tell us your tank capacity and how you plan to survive this hike.

Can the government just leave this subsidy for the masses sake and go after those stealing our oil?

Can the government just do partial removal of subsidy instead of total?

Meaningful contributions please.

OP, they will come to tell you how subsidy is enriching the rich,

They will come to tell you how the poor is not benefiting anything from government subsidising petrol

They will come to tell you so many uncoordinated things to justify this thoughtless decision by Tinubu

Bobloco:


OP, they will come to tell you how subsidy is enriching the rich,

They will come to tell you how the poor is not benefiting anything from government subsidising petrol

They will come to tell you so many uncoordinated things to justify this thoughtless decision by Tinubu

How can we survive this?

Can I afford to pay this amount for full tank?

Am I going to park the car?

Originakalokalo:


How can we survive this?

Can I afford to pay this amount for full tank?

Am I going to park the car?

It's not easy bro, please stay strong

Movement of people and services will be super expensive.

How much is Lagos to Abuja now,

In days to come, how much will it be?

Economy will shut down when people are not moving...

Bobloco:


It's not easy bro, please stay strong

This is not feasible.

It won't work.

By the time Lagos to Abuja is 25,000-30,000, I will see what will remain of the economy.

Vivianat:

Total revolution.

Yeah, we can do total revolution, and take over the country, and return fuel to N50 a liter....and by the time we are facing the massive budget deficit and debt five years later from cheap fuel, on top of other matters, we would wake up and remove subsidy....for good.

nairalanda1:


Yeah, we can do total revolution, and take over the country, and return fuel to N50 a liter....and by the time we are facing the massive budget deficit and debt five years later from cheap fuel, on top of other matters, we would wake up and remove subsidy....for good.

What of partial removal?

The ripple effect of this total removal will be massive

Bobloco:


OP, they will come to tell you how subsidy is enriching the rich,

They will come to tell you how the poor is not benefiting anything from government subsidising petrol

They will come to tell you so many uncoordinated things to justify this thoughtless decision by Tinubu

Damm, you don't even need to support Tinubu to relaize that subsidy is bad for the economy.

The problem is, the cost of production of fuel as well as the amount of fuel used in this country rises. Like we went from 40 m liters a day in 2013 to 80 million now.

The more the cost of producing fuel rises, the more the cost of subsidy rises. And that means we would be taking money from the budget for other things to fund subsidy.




In 2012, Jan....the landing cost of fuel was N99, and the pump price, as set by government was N65. In Sept 2022, the landing cost had gone up to N502.

Now, if we had kept pump price at N65 up till 2022, the amount of money we would have been spending on subsidy would have risen from N34 per liter to N 445 per liter.

Let's not forget that daily consumption has gone up from 40m in 2012 to 80 m in 2023.

At the end, the budget won't be able to cope, and the borrowing would be pro-max

Park your car at home

Originakalokalo:


What of partial removal?

The ripple effect of this total removal will be massive

We have been doing partial removal for decades...which is why fuel does not cost 15 kobo as it did in early 1981.

And yeah, it did not help the economy much.

nairalanda1:


Yeah, we can do total revolution, and take over the country, and return fuel to N50 a liter....and by the time we are facing the massive budget deficit and debt five years later from cheap fuel, on top of other matters, we would wake up and remove subsidy....for good.

You should be ashamed of yourself for spewing this trash, why are you so heartless and passionate in distorting facts and truth?

Can you explain why your government owned refineries are not working?

What kind of government sells crude oil and imports fuel, one of the many products of refined crude oil and sell it to its citizens.

You are on of the problems Nigeria has

I need options of cars with 1.4 litre engine please.

Those driving SUVs and V8 are on their own.

Profwriter:


You should be ashamed of yourself for spewing this trash, why are you so heartless and passionate in distorting facts and truth?

I could lie, and say that subsidy is OK...but ten years of reading about it has only left me horrified.

Subsidy is like having an addiciton to sugary stuff. You won't see the effects today, but you will see them years down the line.

Can you explain why your government owned refineries are not working?

Easy. Subsidy means that the refineries basically operate at a loss...which means they do not have enough profit to produce fuel right.

No profit....means government has to send them money....which means that sabotage and corruption result.

We have had subsidy since the 1970's when we had 2 working refineries...and now we do not have any working ones. Tells me a lot.

By contrast, GSM works because at the end, they make enough profit to make it work. No subsidy.

(If you want to see how subsidising everything can wreck an economy...see the old USSR and most of its satellites.).

What kind of government sells crude oil and imports fuel, one of the many products of refined crude oil and sell it to its citizens.

The kind that ruins its refineries by forcing them to operate at a loss in the name of subsidy.

Remove the profit motive, and a distortion in the economy results.

You are on of the problems Nigeria has

I did not know I had so much power over a country. Wow.

Originakalokalo:
I believe a whole lot should be put in place.... Else,

Like what?

Fixing refineries? Does not necessarily mean that fuel prices would fall. Because the refineries have to pay maintenance and upgrade costs...which means they have to operate at a profit.

Palliatives? Yeah, where are we going to find the money? That 's a big problem. If Buhari was borrowing $800M for palliatives for poorest of poor...that tells me (apart from the fact that his government failed in diversifying the economy among other things)...that money for more palliatives for 'all' is not just there. Unless we borrow again.

nairalanda1:


I could lie, and say that subsidy is OK...but ten years of reading about it has only left me horrified.

Subsidy is like having an addiciton to sugary stuff. You won't see the effects today, but you will see them years down the line.



Easy. Subsidy means that the refineries basically operate at a loss...which means they do not have enough profit to produce fuel right.

No profit....means government has to send them money....which means that sabotage and corruption result.

We have had subsidy since the 1970's when we had 2 working refineries...and now we do not have any working ones. Tells me a lot.

By contrast, GSM works because at the end, they make enough profit to make it work. No subsidy.

(If you want to see how subsidising everything can wreck an economy...see the old USSR and most of its satellites.).



The kind that ruins its refineries by forcing them to operate at a loss in the name of subsidy.

Remove the profit motive, and a distortion in the economy results.




I did not know I had so much power over a country. Wow.

You are liar. Refinery sell at profit to govt who sell to masses at a loss. It is the same thing but you rearranged it to suit your mischievous argument. GSM isnt subaidized.so stop comparing apples to oranges. Plus airtime isnt desirable for smugglers.

CodeTemplar:
You are liar. Refinery sell at profit to govt who sell to masses at a loss. It is the same thing but you rearranged it to suit your mischievous argument. GSM isnt subaidized.so stop comparing apples to oranges. Plus airtime isnt desirable for smugglers.

But the trees were growing well, and the roses were flowering....

nairalanda1:



But the trees were growing well, and the roses were flowering....

just like the waters was flowing in.

CodeTemplar:
just like the waters was flowing in.

Mother greenberyy was flowering the plants...

nairalanda1:


Mother greenberyy was flowering the plants...

coconut had water in them and the fishes never knew.

nairalanda1:


Damm, you don't even need to support Tinubu to relaize that subsidy is bad for the economy.

The problem is, the cost of production of fuel as well as the amount of fuel used in this country rises. Like we went from 40 m liters a day in 2013 to 80 million now.

The more the cost of producing fuel rises, the more the cost of subsidy rises. And that means we would be taking money from the budget for other things to fund subsidy.




In 2012, Jan....the landing cost of fuel was N99, and the pump price, as set by government was N65. In Sept 2022, the landing cost had gone up to N502.

Now, if we had kept pump price at N65 up till 2022, the amount of money we would have been spending on subsidy would have risen from N34 per liter to N 445 per liter.

Let's not forget that daily consumption has gone up from 40m in 2012 to 80 m in 2023.

At the end, the budget won't be able to cope, and the borrowing would be pro-max

Then why did Tinubu himself objected to its removal to the extent of sponsoring protest in 2012

Bobloco:


Then why did Tinubu himself objected to its removal to the extent of sponsoring protest in 2012

Because he is a politician and politicans know how to plot and do anything for power.

nairalanda1:


Because he is a politician and politicans know how to plot and do anything for power.

So it was all about selfish interest not the interest of the people

Bobloco:


So it was all about selfish interest not the interest of the people

LOL...that's why I don't trust politicians.

But at the end, you guys don't really want subsidy to go, whoever removed it. That's the main issue here.

Easy. Subsidy means that the refineries basically operate at a loss...which means they do not have enough profit to produce fuel right.

I'm speechless, did you just say this?
Have you been drinking for a while?

How many times have your government removed subsidy?
Over 6 times now between 2015 to 2022.

Anytime they want to hike the cost of fuel, they will introduce the word 'subsidy' and make empty promises of what the money they claimed to save from subsidy payments will be used for.

The poor performance of the refineries is caused by who?

So it's cheaper to import fuel than to refine it in your land, those who refine and sell to you do they have two heads?

Why do you decide to be unfortunate and make mockery of the pains of Nigerians?

Are you from the tribe of lai Muhammed?

Google will help you with list of countries that are still subsidising certain cost for their citizens and they are doing well than Nigeria.

Can you tell why nnpc is the sole importer of fuel?
Keep misleading the public with lies.

It's possible you are even a beneficiary of the system.

It's on record that subsidy payment has been made for June, yet your master removed it in May instead of you to do the right thing and uphold truth, you a disseminating and peddling lies and falsehood.

God will judge you

Profwriter:



Easy. Subsidy means that the refineries basically operate at a loss...which means they do not have enough profit to produce fuel right.

I said what I said...lol.

I'm speechless, did you just say this?
Have you been drinking for a while?

Just water. Don't touch the hard stuff....it would do things to ya...
(Cigarettes and whisky and wild bear women, they'll drive ya...)

How many times have your government removed subsidy?
Over 6 times now between 2015 to 2022.

It's called a partial removal, and it is why your price of crude oil is not 15k as it was in 1981, or 75 k as it was in 1991 or 11 naira as it was in 1996.

And here is why it is done....

Anytime they want to hike the cost of fuel, they will introduce the word 'subsidy' and make empty promises of what the money they claimed to save from subsidy payments will be used for.

Now in 2015...landing cost of fuel was N132, .....and the price at the pump was N87. By 2022, landing cost was N502.

IF...and I mean IF.....the givernment had kept fuel at N87, subsidy costs would have risen from 45 naira per liter to N445 per liter....

Note that oil prices have been low...between 2014 April, and 2022 March. The revenue was not there to pay for the subsidy in the amount you would have wanted it to be.

Therein prices went up.

The poor performance of the refineries is caused by who?

So it's cheaper to import fuel than to refine it in your land, those who refine and sell to you do they have two heads?

Let's define subsidy....subsidy is what is paid to the petroleum industry for selling fuel at a price below the production cost.


Again...subsidy is what is paid to the petroleum industry for selling fuel at a price below the production cost.

At the end of the day, the refineries do not work because

1.They are running at a loss...which makes it harder to pay for upgrades and stuff (TAM is not the only thing refineries need...they need to be upgraded and so forth).

2.Since the refineries do not rely on profit...it is easy to sabotage, and collect money to steal. After all, they get paid even when they do not work.

If subsidy goes, NNPC would have to make its refineries work...because now they have become the goose that lays the golden egg. Killing the goose won't make sense (and NNPC is repairing their refineries.)

Why do you decide to be unfortunate and make mockery of the pains of Nigerians?

Are you from the tribe of lai Muhammed?

I've been doing this since 2011, back then the Lai was opposing fuel subsidy removal.

Google will help you with list of countries that are still subsidising certain cost for their citizens and they are doing well than Nigeria.

Because

1.They can afford it...via heavy duty taxation....or because they produce more crude than us, AND have populations that are not up to a quarter or a fifth of our populaiton

2. Or they incurr very heavy debt doing so....Iran is a good example. All the refineries work, fuel is subsidised...and their debt makes ours look like small change.

3.And then there is Venezuela...fuel costs N40 there. Meanwhile, their refinery now produces at one-ninth of its previous capacity, AND the government loses 18billion dollars annually to fuel smuggling. And they be in debt. Sound famillar?

Can you tell why nnpc is the sole importer of fuel?

OMG...this is the easiest one...

Back in the bad old days, when we had multiple importers, part of the subsidy costs went to the importers of fuel...especially since they had to sell fuel below the production cost to marketers.

The probelm was that many of them were invoicing the government for fuel NOT imported, and were making big money from doing so.

It worked when oil was above 100 dollars per barrel, and government could afford to pay them, but once revenues fell...the Buhari governmernt cracked down on the thing by making NNPC the sole importer. Even then, they still had to pay off the debt to importers in full in 2019.

Now an additional word about refineries....there are 20 licenses for private refineries that have been issued. Only 5 (plus Dangote) have been taken up. Because, subsidy means the refineries would operate at a loss.

Keep misleading the public with lies

I honestly wish I was lying. In my ideal world, fuel would cost N10, and the poor would pay nothing. But this would even make the burden on our revenue even worse..

It's possible you are even a beneficiary of the system.

This is a lie. From you.

It's on record that subsidy payment has been made for June, yet your master removed it in May instead of you to do the right thing and uphold truth, you a disseminating and peddling lies and falsehood.

God will judge you

Yes, subsidy payment has been made, but

1.NNPC is still owed 2.8 trillion in subsidy payment

2.As some Nairalanders have explained, from July, the marketers would have to buy fuel at much higher prices, since subsidy is gone. How do they pay for fuel at higher prices? By rasing prices now to make enough cash against July. If they don't do that...the scarcity would be worse when July comes because the marketers won't be able to afford fuel at the new prices. Better start raising money now.