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Nairaland Forum / Nairaland / General / Politics / Without Subsidy Petrol Will Cost N109 Only (2747 Views)
Petrol Won’t Sell Above N100 Without Subsidy –ibe Kachikwu / Without Subsidy Petrol Will Cost N109 Only / Without Subsidy Petrol Will Cost N109 Only (2) (3) (4)
Without Subsidy Petrol Will Cost N109 Only by ducii: 9:16am On Nov 25, 2014 |
At the current $78 average world market price for crude Nigerians will have to pay only N109.43k per litre were the highly abused subsidy on petroleum product to be removed immediately today. This price, analysts say, completely debunks the fear widely expressed that the removal of the subsidy will result in a substantial jump in the pump price of petrol. The country’s controversial subsidy on the pump price of petrol is now about N12.43 per litre on the back of falling oil prices, BusinessDay can authoritatively report. Industry sources confirmed to BusinessDay that the product’s pricing template authorised by the Petroleum Products Pricing and Regulatory Agency (PPPRA), recognises four main headings. First is the product cost defined as the monthly moving average cost of products, as quoted on Platts Oil gram. The reference spot market is North West Europe (NWE). Next is freight cost which is the average clean tanker freight rate (World Scale (WS) 100) as quoted on Platts. It is the cost of transporting 30, 000mt (30kt) of product from NWE to West Africa (WAF). Then there are margins for marketers, dealers and transporters. Other cost items on the template are jetty-depot through-put, as well as other charges and taxes. As at yesterday, landing cost of petrol was estimated at N100.98 per litre, consisting of product cost (N86.02), freight (N5.34) and other delivery costs, excluding local distribution, marketing/dealers margins but including port and financing costs at N9.62. Local distribution cost to Lagos attracts N2.05 per litre, marketers’s margin of N4.70 and dealers’ margin of N1.70 giving a sub-total of N8.45 per litre. Thus, the total cost of petrol at the pump is N109.43 per litre. However, given the regulated pump price of N97 per litre, the subsidy element works out at N12.43 per litre. Nigeria’s daily consumption of petrol is estimated at 35million litres today. This means that the daily subsidy comes to N435.05million, or N13.051 billion per month. Analysts observe that with the falling price of oil, dropping the subsidy entirely may not hurt the economy too much. It is also estimated that at the peak of oil prices, the subsidy was about N44.00 per litre. http://businessdayonline.com/2014/11/without-subsidy-petrol-will-cost-n109-only/#.VHQ6fjTF8wJ 3 Likes 1 Share |
Re: Without Subsidy Petrol Will Cost N109 Only by signz: 9:53am On Nov 25, 2014 |
ducii: If true then I wonder why we've not deregulated the downstream sector of Economy. The Nass members should surprise us nah and do something commendable for once. They should pass PIB if that is the only solution. Diezani Madueke should also grant licenses to people dat may want to operate mini modular refineries because we can't afford to wait till 2018 for Dangote to finish his mega refinery. This will not only reduce our dependence on foreign refined oil products, it will help reduce the slide of naira against the dollar. Not forgeting the hundreds of thousands of jobs it will provide. 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by ducii: 9:58am On Nov 25, 2014 |
signz: Mini refineries are the problem, because they bread bunkers, and ultimately pipeline vandalism will increase 10 folds 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by chemali: 10:02am On Nov 25, 2014 |
So if the calculated annual subsidy bill at current rate is 156billion naira, why is over 400billion in the budget for 2015? Or is it the less consumed kerosene that accounts for 300billion? Or is it an expectation (contrary to IAEA estimates) that oil prices will rise? Or the naira will trade at 200naira to a dollar? 2 Likes |
Re: Without Subsidy Petrol Will Cost N109 Only by signz: 10:03am On Nov 25, 2014 |
ducii: Please read this http://businessdayonline.com/2014/02/modular-refineries-test-the-idea/#.VG7pvvMo_Fo Also Google mini modular refineries. Technology has changed everything and the government can now step in regulate |
Re: Without Subsidy Petrol Will Cost N109 Only by RockMaxi: 10:05am On Nov 25, 2014 |
When will you people stop believing in this scam of fuel subsidy? 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by ducii: 10:06am On Nov 25, 2014 |
RockMaxi: How is fuel subsidy a scam |
Re: Without Subsidy Petrol Will Cost N109 Only by idupaul: 10:20am On Nov 25, 2014 |
I beg to disagree because from my own calculation here if subsidy is removed completely today fuel price should be 95 naira a litre because the price of crude has dropped by 30percent and so the price of refined products sef has dropped in the international market. Anything short of 95 will mean a scam |
Re: Without Subsidy Petrol Will Cost N109 Only by RockMaxi: 10:46am On Nov 25, 2014 |
ducii: As at 2013, the cost of building a 100,000 bpd refinery was pegged at $2.3billion. How does this figures make sense today? A barrel of oil = ±160 litres A barrel of oil = ~40% Fuel depending on technology. $1 = ±168naira. Possibly if you do basic maths you will build a 16million litres per day refinery at 386.4billion naira that will give you 6.4million litres couple with the present production capacity of the obsolete one. Now put subsidy budget since 2011 till date.. 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by ducii: 10:59am On Nov 25, 2014 |
RockMaxi: Nigeria is not susidising petrol because, our refineries are not performing at optimum. Even countries like Oman, Saudi Arabia subsidise Petrol with functioning refineries. 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by Ventura1: 11:02am On Nov 25, 2014 |
Who doesn't know its a scam! |
Re: Without Subsidy Petrol Will Cost N109 Only by RockMaxi: 11:09am On Nov 25, 2014 |
ducii: Please how much is a litre of fuel in all these countries you stated? |
Re: Without Subsidy Petrol Will Cost N109 Only by ducii: 11:15am On Nov 25, 2014 |
RockMaxi: http://www.globalpetrolprices.com/gasoline_prices/ That is the world petrol prices per litre as at November, 2014. Nigeria is the only country on that list with a 170 million population that subsidises petrol to the level that we do. Even Russia that has more oil and better refineries than Nigeria, sells petrol at a higher price than what it is sold in Nigeria (which is stupid) Look at countries like Ecuador with less population and higher daily crude oil production, sells petrol at the same price as what we buy petrol in Nigeria. That Policy if you ask me is ludacris, and breeds a lot of corruption. |
Re: Without Subsidy Petrol Will Cost N109 Only by RockMaxi: 11:28am On Nov 25, 2014 |
ducii: Step back and see the bigger picture, there is deceit in government. Don't be controlled by the media. I can't get something from what you posted up. |
Re: Without Subsidy Petrol Will Cost N109 Only by ducii: 11:31am On Nov 25, 2014 |
RockMaxi: Sorry that post wasn't clear enough so I Modified it. |
Re: Without Subsidy Petrol Will Cost N109 Only by RockMaxi: 11:40am On Nov 25, 2014 |
ducii: The question to ask you is what makes fuel 70naira during Obasanjo's regime, 65naira during Yaradua's and 97naira immediately GEJ came into office? 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by ducii: 11:46am On Nov 25, 2014 |
RockMaxi: what was the price of crude oil, at the times you just mentioned above, or are you forgetting that Nigeria imports Petrol. |
Re: Without Subsidy Petrol Will Cost N109 Only by Nobody: 11:48am On Nov 25, 2014 |
Re: Without Subsidy Petrol Will Cost N109 Only by Nobody: 11:48am On Nov 25, 2014 |
No wahala,just as it is going up, Jonathan is going out next year. In 2015, President Buhari, APC President would reverse it to N65 only |
Re: Without Subsidy Petrol Will Cost N109 Only by luvmijeje(f): 11:57am On Nov 25, 2014 |
Analysts observe that with the falling price of oil, dropping the subsidy entirely may not hurt the economy too much. It is also estimated that at the peak of oil prices, the subsidy was about N44.00 per litre. All this vodoo analysts we have everywhere. |
Re: Without Subsidy Petrol Will Cost N109 Only by Collynzo9: 12:06pm On Nov 25, 2014 |
Useless journalists. The countries we import fuel from still sell petrol at an equivalent of N300 and above within their country so how can we sell at N105 without subsidy despite the cost of transportation? Lies upon lies. |
Re: Without Subsidy Petrol Will Cost N109 Only by RockMaxi: 12:07pm On Nov 25, 2014 |
ducii: High cost of raw material= High cost of finished products Lower cost of raw material= ?? Kindly fill in the answer. Don't let us deviate from where we started, fuel subsidy in Nigeria is a big scam. |
Re: Without Subsidy Petrol Will Cost N109 Only by ducii: 12:20pm On Nov 25, 2014 |
RockMaxi: you just corroborated the point I was trying to make that, now the price of crude oil is higher, and therefore the price of petrol we import will automatically be higher. There is no way subsidy is a scam, because The price of petrol is higher in the markets we import it from than what we pay in Nigeria. |
Re: Without Subsidy Petrol Will Cost N109 Only by RockMaxi: 1:54pm On Nov 25, 2014 |
ducii: |
Re: Without Subsidy Petrol Will Cost N109 Only by Abagworo(m): 2:15pm On Nov 25, 2014 |
Subsidy is complete scam. Under Yar'Adua with petrol selling at 65 Naira, subsidy was 270billion but under Jonathan it made a 1000% increase to 2.6 trillion. 2 Likes |
Re: Without Subsidy Petrol Will Cost N109 Only by pendy79: 2:34pm On Nov 25, 2014 |
@rockmaxi you should gauge the level of comprehension of the person you argue from his writing. If someone in this day and time says crude price is price then learn to end the talk. @abagworo this scam was perpetuated with diezani and the resident Dundee in Ask rock head of the scam. I wish Nigerians can see the evil manipulations this cabal headed by Jonathan is doing to the nation. Can't people look beyond religious and ethnic bigotry and see the level of decadance and the way it affects all in Nigeria. 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by hawksford: 3:40pm On Nov 25, 2014 |
ok |
Re: Without Subsidy Petrol Will Cost N109 Only by phlemzy: 4:04pm On Nov 25, 2014 |
Certain cabal wouldnt just watch subsidy removal happen. |
Re: Without Subsidy Petrol Will Cost N109 Only by mikolo80: 4:51pm On Nov 25, 2014 |
ducii:yeah right,blame the modular refineries, they're the problem not corrupt and incompetent nnpc and security officials. |
Re: Without Subsidy Petrol Will Cost N109 Only by orimsamsam(m): 6:50pm On Nov 25, 2014 |
Collynzo9:dude d problem with you is dat you are just too sentimental in your judgement. You criticize any you feel does not support jonathan 2015 re-election. For God sake, nigeria is an oil producing country. Why cant we repair our faulty refinering and build new one. The country u mention dat nigeria import petrol frm has a higher gdp dan nigeria. The earliar you start saying the truth the better 1 Like |
Re: Without Subsidy Petrol Will Cost N109 Only by ayindejimmy(m): 7:17pm On Nov 25, 2014 |
ducii:Whats our business with subsidy if we have our own refineries? Who grounded our refineries and why? How many Opec members refined their crude outside? We're members of Opec for crying out loud...dont we get any benefits from having oil? We pay thru our nose for water, health,education, power...... and some ppl wanna compare us with Russia? Now, what do the masses benefit for being in an oil producinproducing country ? Insecurity. ..if you ask me. This whole subsidy is a scam |
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