THE PETROLEUM PRICE HIKE - BUHARI, KACHICKWU, POLITICS, INDEPENDENT OIL MARKETERS AND THE GOOD PEOPLE OF NIGERIA

By Muhammad Abubakar  B
An Economics graduate
Sokoto State Civil servant, a patriotic and a Concern citizen of Nigeria.
Basakkwace214@gmail.com

It's no longer a rumour that there maybe increase in the general price of  fuel in Nigeria from 145 to 180 to 182, which is as a result of the increase in the landing cost of fuel in Nigeria.

In the first quarter  of 2016, were the price of fuel at local filling stations were pegged at N145, the landing cost was about N134 where some independent oil marketers do sell fuel at the rate of N145, N143,  N142, and N140 by the likes of A.A Rano during Muslims fasting period

Gradually, the landing cost of fuel was increasing due to alot of factors, the rose was from N134 of 2016 to N171 Now.

QUESTION

Can an independent oil marketer of a country whose pegged price of petrol is N145 be able to import when the landing cost is now 171?

The answer to the above question is No,  therefore the independent oil marketers changed their means of supply  to neighboring countries  whose price of fuel is almost N300 -N350 per litre

The independent oil marketers therefore left NNPC alone to be importing fuel at a landing cost of N171 with a lost of N26 per litre, it's stated by premium times news paper  that NNPC is loosing N800-N900 Million Naira per litre  which a cumulatively stated to almost N86 Billion Naira in three months.
SUGGESTIONS PUT FORWARD BY THE PETROLEUM MINISTRY

1-That the government  should sell dollar to the independent oil marketers at the rate of N204 instead of the official rate of N305 Naira  to enable the landing cost of fuel go down which can sustain the consumption of fuel at the rate of N145
                     OR
2-The Government should bring back subsidy and be subsidizing N41 per litre to enable Marketers sell at the rate of N145
                             
                         OR
3-The government should let NNPC filling Stations be selling at the rate of N145 and let the marketers sell at any price (without control)

MY CRITICISMS TO THE SUGGESTIONS

1- The sell of dollar at the rate of N204 to marketers is no less of a subsidy and it will take us back to square one, where a marketer  will get dollar for N204 which instead of using it to buy fuel, he will be selling it to black marketers  at a rate where he'll get nothing less than 50% profit.

2- Bringing back subsidy in this kind of economy that's said to be unstable is not healthy for the economy and the corruption being dodged away from will linger.

3- letting NNPC alone sell at the rate of N145 will cause a lot of heavy ques  at NNPC filling stations or some corrupt NNPC workers will  be diverting it some marketers stations

THE POLITICAL IMPLICATIOAN OF THE CASE

The political aides of the president will never let him to allow a hike in fuel price considering the fact that we are in 2018 and 2019 is by the corner

THEOLOGICALLY

GOD the almighty is punishing the current administration for not being just to the previous government when they were trying to remove subsidy to channel the funds to capital projects.

I can still remember when GMB was interviewed in 2011 in respect to subsidy where he clearly stated that subsidy doesn't exist and that nobody is subsidizing fuel to masses were he went saying "Who's subsidizing Who? "

MY ADVICE

1-The government should with immediate effect focus much more on reviving refineries  to save the value of naira and drastically reduce the landing cost of fuel in Nigeria

2-The government should look forward to utilizing dangote's refinery which is said to be ready in 2018.

3-the government should at the worst scenario embark on the advise of Mr. Kachikwu to allow NNPC filling stations alone to sell at N145 and let other marketers sell above N145 which must be in the shortest possible run

4- The president of Nigeria should please resign from the seat of the minister of petroleum and assign a well experienced and deserved personal as his occupancy of the seat proves nothing positive to be proud of.

QUESTION

1-Why have we not completed works on the PH and KD refineries for about 3years as promised the president?

Thank you!!!