What are the impacts of Diesel, Kerosene and Aviation fuel after deregulation?
I remembered in 2015, the then President Buhari hyked the price from N87 to N145, telling us no more subsidy, everyone bought into the lie, not too long they were shouting under recovery and from then on the price kept on increasing until we got to N184 and above in Nigeria. People couldn't resist......
By then cooking gas, Kerosene and diesel prices were beyond the reach of many citizens....
This new government of Tinubu has now taken the price to a new level of N488 minimum set by NNPCL and people are already groaning under untold hardship claiming the sector has been fully deregulated......
My own take are:
-If there is full deregulation NNPCL should not be the one fixing prices, law of supply and demand should do that.....
- NNPCL should not be sole importer of fuel into Nigeria.....
-FG claims our fuel is the cheapest compared to countries around us; and that encourages smuggling. We have heard that since I was born and it has changed nothing, because as long as those countries don't have any source, Nigeria supply will always be cheaper.

I will believe there is subsidy if NNPCL and FG can give us accurately, how much fuel the country consume per day to arrive at humongous amount paid as subsidy.
- Where are the savings and impacts, from diesel, Kerosene and Aviation fuel deregulation?
As long as I am concerned, nothing like deregulation yet but price increament to meet up, government borgus and frivolous spending.....
May God have mercy on the suffering masses.......

I can tell you the impact of keeping subsidies on diesel, kerosene, and jet fuel...

A massive debt that would have made our current debt look like small money in comparison.

By now we won't have money to pay salaries, pay for projects, and the kind of suffering would be massive.Government would be owing salaries for years.

And there would be no refineries, no Dangote refinery nothing...at all.

nairalanda1:
I can tell you the impact of keeping subsidies on diesel, kerosene, and jet fuel...

A massive debt that would have made our current debt look like small money in comparison.

By now we won't have money to pay salaries, pay for projects, and the kind of suffering would be massive.Government would be owing salaries for years.

And there would be no refineries, no Dangote refinery nothing...at all.

Do you still have money.........

Omooba77:


Do you still have money.........

Do you?

If you want cheap things, then pay for them.

Subsidy costs money. Either we pay for it in higher taxes, or we don't.

nairalanda1:


Do you?

If you want cheap things, then pay for them.

Subsidy costs money. Either we pay for it in higher taxes, or we don't.

I will believe there is subsidy if NNPCL and FG can give us accurately, how much fuel the country consume per day to arrive at humongous amount paid as subsidy....

If there is actually deregulation and no more subsidies why then is NNPC fixing the price of petrol?
The smartest thing to do is to either give license of operation to private investors who have interest in refining petroleum products, give them a regulatory guideline of operations and you will see that no petroleum products will sell for more than 150 naira @pump price in this country because of competition.

Omooba77:


I will believe there is subsidy if NNPCL and FG can give us accurately, how much fuel the country consume per day to arrive at humongous amount paid as subsidy....

Well, the subsidy is gone now, so that is moot.

The humongous amount is due to smuggling which is facilitated by fuel costing N189, while in all our neighbours it costs N400 and above. If not more. That makes smuggling attractive.

And it was not just big men doing it, not just the rich, even small guys were carrying 50l jerycans across the border. (I even confronted one on Nairaland here...lol. The guy was defending his illegal business).

That is why the subsidy had to go.

Even then, even if we knew the exacto ammount...the issue is, the cost of producing fuel always rises year in year out. ....as does consumption amounts (as you know we still don;t have stable power). That means subsidy costs rise....and that means we take money from other parts of the budget to pay for the subsidy...meaning we spend more and more....and then we have a deficit that can only be covered by......borrowing.

And last year we were borrowing to pay for subsidy.

And you want that to continue because cheap fuel? You want us to end up like Sri Lanka that was so broke it could not even get new loans from the IMF OR ANYONE?

Oga, you can call me an APC supporter, a PDP supporter, a LP supporter, a supporter of evil, or whatever. But the day you get how subsidy damages an economy, you will then come and see me and be thankful.

I had my eyes opened 11 years ago. I am not going back to be blind. And it has nothing to do with politricks.

nairalanda1:


Well, the subsidy is gone now, so that is moot.

The humongous amount is due to smuggling which is facilitated by fuel costing N189, while in all our neighbours it costs N400 and above. If not more. That makes smuggling attractive.

And it was not just big men doing it, not just the rich, even small guys were carrying 50l jerycans across the border. (I even confronted one on Nairaland here...lol. The guy was defending his illegal business).

That is why the subsidy had to go.

Even then, even if we knew the exacto ammount...the issue is, the cost of producing fuel always rises year in year out. ....as does consumption amounts (as you know we still don;t have stable power). That means subsidy costs rise....and that means we take money from other parts of the budget to pay for the subsidy...meaning we spend more and more....and then we have a deficit that can only be covered by......borrowing.

And last year we were borrowing to pay for subsidy.

And you want that to continue because cheap fuel? You want us to end up like Sri Lanka that was so broke it could not even get new loans from the IMF OR ANYONE?

Oga, you can call me an APC supporter, a PDP supporter, a LP supporter, a supporter of evil, or whatever. But the day you get how subsidy damages an economy, you will then come and see me and be thankful.

I had my eyes opened 11 years ago. I am not going back to be blind. And it has nothing to do with politricks.

Remembered OBJ, gave the same excuse to increase from N5:20k then.....
We will still be here in few months time, when Niger, Chad, Cameron and Benin will be selling far above N800,because Nigeria is their main source......

Dottore:
If there is actually deregulation and no more subsidies why then is NNPC fixing the price of petrol?
The smartest thing to do is to either give license of operation to private investors who have interest in refining petroleum products, give them a regulatory guideline of operations and you will see that no petroleum products will sell for more than 150 naira @pump price in this country because of competition.

You get the thinking, same government said no more PPRA, yet continue to fix the price, rather than free market based on law of demand and supply......

Omooba77:

Remembered OBJ, gave the same excuse to increase from N5:20k then.....
We will still be here in few months time, when Niger, Chad, Cameron and Benin will be selling far above N800,because Nigeria is their main source......

Yes, and being their source cost us too too much money.

But then again, Niger has a refinery, as does Cameroon, I believe. And they need to sell fuel at a profit to make their refineries run otherwise...which is why they do not have subsidy.

Dottore:
If there is actually deregulation and no more subsidies why then is NNPC fixing the price of petrol?
The smartest thing to do is to either give license of operation to private investors who have interest in refining petroleum products, give them a regulatory guideline of operations and you will see that no petroleum products will sell for more than 150 naira @pump price in this country because of competition.

NNPC is fixing prices for its own outlets. Other stations are free to set their own prices.

Also, licensing for private refineries has been on for over 10 years. As at 2020, there were 20 licenses issued.

I doubt fuel would be sold for N150. That ship has sailed (unless the value of the naira improves)

Dottore:
If there is actually deregulation and no more subsidies why then is NNPC fixing the price of petrol?
The smartest thing to do is to either give license of operation to private investors who have interest in refining petroleum products, give them a regulatory guideline of operations and you will see that no petroleum products will sell for more than 150 naira @pump price in this country because of competition.

Becos the present stock in the country was solely imported and distributed by NNPC, until private investors come onboard and start distributing by then NNPC we have no right to fix price

For now NNPC are the sole primary source

nairalanda1:


NNPC is fixing prices for its own outlets. Other stations are free to set their own prices.

Also, licensing for private refineries has been on for over 10 years. As at 2020, there were 20 licenses issued.

I doubt fuel would be sold for N150. That ship has sailed (unless the value of the naira improves)

NNPCL fixing price, means others can add their own cost, since NNPCL is the MAIN importer......

Omooba77:

You get the thinking, same government said no more PPRA, yet continue to fix the price, rather than free market based on law of demand and supply......

Is it not when competition exist that PPRA will begins, for now NNPC enjoys are the sole distributors and that is why NMDPRA have come out to offer Licenses to interested investor

Until these private investors come on board and having products to distribute ... PPRA can't be effective

Dottore:
If there is actually deregulation and no more subsidies why then is NNPC fixing the price of petrol?
The smartest thing to do is to either give license of operation to private investors who have interest in refining petroleum products, give them a regulatory guideline of operations and you will see that no petroleum products will sell for more than 150 naira @pump price in this country because of competition.

Many of you don't understand what's going on. There's nothing like nnpc, it's now a private company called nnpcl. They don't fix prices. They're just like other oil companies who buy and sell products. They buy at same price with others. What you refer to is an in house working document strictly for the nnpcl. If you noticed there's no uniform price as it was before. Prices are fixed based on the cost of taking the product from source to final location. It's not for all marketers. Others also will fix their prices .

famology:



Many of you don't understand what's going on. There's nothing like nnpc, it's now a private company called nnpcl. They don't fix prices. They're just like other oil companies who buy and sell products. They buy at same price with others. What you refer to is an in house working document strictly for the nnpcl. If you noticed there's no uniform price as it was before. Prices are fixed based on the cost of taking the product from source to final location. It's not for all marketers. Others also will fix their prices .

Same lies, different mode......

Omooba77:

Same lies, different mode......

Continue to cry blood

Omooba77:


I will believe there is subsidy if NNPCL and FG can give us accurately, how much fuel the country consume per day to arrive at humongous amount paid as subsidy....

Exactly. This question they will avoid.

famology:



Many of you don't understand what's going on. There's nothing like nnpc, it's now a private company called nnpcl. They don't fix prices. They're just like other oil companies who buy and sell products. They buy at same price with others. What you refer to is an in house working document strictly for the nnpcl. If you noticed there's no uniform price as it was before. Prices are fixed based on the cost of taking the product from source to final location. It's not for all marketers. Others also will fix their prices .

Who are the shareholders of NNPCL?

nairalanda1:


NNPC is fixing prices for its own outlets. Other stations are free to set their own prices.

Also, licensing for private refineries has been on for over 10 years. As at 2020, there were 20 licenses issued.

I doubt fuel would be sold for N150. That ship has sailed (unless the value of the naira improves)

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will no longer fix prices or release templates for Premium Motor Spirit (PMS), popularly called petrol.

The agency’s Authority Chief Executive (ACE), Farouk Ahmed, who said this at a news conference in Abuja on Friday, said that market forces would henceforth dictate prices under the liberalised market.

“As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said.....

Hope you heard from horses mouth......
Never do what is unlawful......

slivertongue:



Who are the shareholders of NNPCL?

Cabals.......

nairalanda1:
I can tell you the impact of keeping subsidies on diesel, kerosene, and jet fuel...

A massive debt that would have made our current debt look like small money in comparison.

By now we won't have money to pay salaries, pay for projects, and the kind of suffering would be massive.Government would be owing salaries for years.

And there would be no refineries, no Dangote refinery nothing...at all.

We are already experiencing all these you listed above even with the deregulation..

Are we not borrowing? to pay salaries fund projects and maintain government officials
is debt not massive?
Is there any refinery?
please don't claim Dangote Refinery..

ZombiePUNISHER:


We are already experiencing all these you listed above even with the deregulation..

Are we not borrowing? to pay salaries fund projects and maintain government officials
is debt not massive?
Is there any refinery?
please don't claim Dangote Refinery..

Yes we are, but as i said, if we added subsides on diesel and kero, the borrowing and debt would be higher than it is now.