nairalanda1:


Dangote refinery won't reduce the price of fuel at all.

The man has to pay loans, pay competitive wages so that workers do not japa, pay taxes and pay maintenance and upgrade costs.

Government thanks to years of mismanagement of which tinubu was a part of , has no money for subsidies

Godfullsam:


Once the price of petrol begin to fall due to competition as BUA, Edo, Imo, PH, Warri and Kaduna refineries come on board. You will swallow you words.

Karemarealty288:


Mumu understand the message and pass.......you should emancipate your very own thought process that China is all about fake and substandard products....ignoransia patient.

Naija2023:


The price of fuel will not drop. Wake up from your delusion . Crude oil is priced on international price. Dangote refinery was a major investment in dollars with alot of foreign staffs, foreign bank loans and foreign investors.

It can only reduce the price by 50 naira per litre maximum which is the cost per litre in transporting PMS from Europe and Asia to Nigeria.

However, since there is already some subsidy in the current PMS at 600 to 700 naira, dangote refinery won't reduce the price by 1 naira. it will only reduce the cost of give subsidy by about 50 naira .

toprealman:
An hour individual built a refinery using money from a system that has cannot revamp one refinery!
How does this make any economic sense? Same people will allow one man monopolize the market and we say he is the richest in Africa.

jkpbestseries:
Refinery that will not create value to any Nigeria. Refinery that will still sell at international market price. Very bad, how is Man so unkind to Mankind?

nairalanda1:


Dangote refinery won't reduce the price of fuel at all.

The man has to pay loans, pay competitive wages so that workers do not japa, pay taxes and pay maintenance and upgrade costs.

Government thanks to years of mismanagement of which tinubu was a part of , has no money for subsidies

Timmi:


So says Nairalanda1, the man from the land of rising wailers.

Naija2023:


The price of fuel will not drop. Wake up from your delusion . Crude oil is priced on international price. Dangote refinery was a major investment in dollars with alot of foreign staffs, foreign bank loans and foreign investors.

It can only reduce the price by 50 naira per litre maximum which is the cost per litre in transporting PMS from Europe and Asia to Nigeria.

However, since there is already some subsidy in the current PMS at 600 to 700 naira, dangote refinery won't reduce the price by 1 naira. it will only reduce the cost of give subsidy by about 50 naira .

Timmi:


Another armchair economist, sitting under the iroko tree drinking palm wine and snuffing tobacco, the man from the land of rising wailers.

immortalcrown:
Great!

Oya, make we see the impact.

nairalanda1:


If you were running a business, like refining fuel, and it cost you above N800 to refine one liter of fuel, would you sell it for N100 to help the poor breathe?

You guys should think and just stop abusing people. Not everything is politics.

QuotaSystem:
Aside from the 650,000 barrels per day it will refine, Dangote’s Petrochemical Plant will also produce 1 million and 3 million metric tones of Polypropylene and Urea Fertilizer respectively for our consumption and export.

BUA’s Akwa Ibom refinery when completed will further drive competition in the downstream oil industry which will benefit the consumers through pricing and availability. Aliko Dangote is truly an industrial collosus, a true African giant.

Patriotic Nigerians are proud of you 🇳🇬

modified:


What is not certain, is the extent to which Dangote’s refinery will reduce petrol prices in Nigeria.

What is certain however, is that the laws of economics dictate that a reduced cost of production is likely to reflect in reduced prices.

Our present pump prices are not dictated solely by the international price of crude, but by the landing cost of imported PMS. The components of this landing cost includes product cost, traders and insurance margin, shipping, charges by government agencies, financing & banking charges and storage charges.

You will agree that the elimination of shipping and govt port charges, and a possible reduced product cost in exchange for discounted supply terms or tax incentives, will definitely result in a lower total cost of production and consequently, lower prices at the pump. Some might say Dangote needs to repay loans, pay good wages, pay taxes, maintenance etc. but news flash! The foreign refineries we are currenty importing from also have these overhead costs embedded in their product prices.

Furthermore, with the eventual completion of Abdulsamad Rabiu's 250k bpd BUA refinery in Akwa Ibom, and the Waltersmith 10k bpd modular refinery in Imo among others; we are looking at a combined total capacity of nearly 1m bpd supply of refined petroleum (compared to our current 427.7k bpd/68 million litres daily imported petrol consumption), and the resultant boost in supply is expected to further drive down prices over time.

Other benefits of the refinery include:
- Over 100,000 jobs created
- Saved Forex spent daily on petrol importation (about $23.3 billion annually, reducing demand pressure on USD)
- Adequate local supply of PMS, AGO, DPK & Jet A1 fuels.
- Increased competition in deregulated downstream sector in favor of Nigerians.
- Increase in FG Revenue from earnings from dividends (20% investment in refinery), taxes and other levies.
- Increased Forex liquidity from export earnings
- Adequate local supply of Petrochemical feedstock (PPE & PPL ) previously imported with USD by manufacturers, while stimulating manufacturing activities. Capacity to supply neighboring countries & further earn forex.
- Improved supply of Urea for Fertilizer resulting in improved agriculture and food production.
- Creation of allied industries and appreciation in real estate value around the refinery.
-Nigeria sheds the embarrassing label and internationally acclaimed, disgraceful paradox of being a major crude oil producer that still imports refined Petrol. My humble two cents.

Chigboboss:
The problem of many haters is not the refinery or the benefits it will bring to the Nigerian economy, but their bitterness is that the mega project is owned by a northerner (Hausa Fulani). Even their cries about it not reducing fuel price is not sincere, and they will never acknowledge the many jobs created, energy security, Forex savings, improved product supply and the many other benefits that the refinery brings.

Instead of building their own legacy they are hating meanwhile BUA has almost completed his 250k bpd refinery in Akwa Ibom.

Give Dangote his flowers biko…💐

ebenholer2:
I will advice president TINUBU to remove that northern man Kyale as NNPC MD cos they may end up crippling the functionality of state owned refinery inorder to favour Dangote so as to monopolize production.
TINUBU should better beware of the North intent.

Chinjo2:
I want to see how this will reduce the price of petrol in Nigeria.

soccerlite:



You think bua is not crony of nigeria government

Did you see names of companies emiefele gave gas fund to that was just released

Go check the list



Oga this is nigeria fa


Only government assisted business thrives

QuotaSystem:
Aside from the 650,000 barrels per day it will refine, Dangote’s Petrochemical Plant will also produce 1 million and 3 million metric tones of Polypropylene and Urea Fertilizer respectively for our consumption and export.

BUA’s Akwa Ibom refinery when completed will further drive competition in the downstream oil industry which will benefit the consumers through pricing and availability. Aliko Dangote is truly an industrial collosus, a true African giant.

Patriotic Nigerians are proud of you 🇳🇬

modified:


What is not certain, is the extent to which Dangote’s refinery will reduce petrol prices in Nigeria.

What is certain however, is that the laws of economics dictate that a reduced cost of production is likely to reflect in reduced prices.

Our present pump prices are not dictated solely by the international price of crude, but by the landing cost of imported PMS. The components of this landing cost includes product cost, traders and insurance margin, shipping, charges by government agencies, financing & banking charges and storage charges.

You will agree that the elimination of shipping and govt port charges, and a possible reduced product cost in exchange for discounted supply terms or tax incentives, will definitely result in a lower total cost of production and consequently, lower prices at the pump. Some might say Dangote needs to repay loans, pay good wages, pay taxes, maintenance etc. but news flash! The foreign refineries we are currenty importing from also have these overhead costs embedded in their product prices.

Furthermore, with the eventual completion of Abdulsamad Rabiu's 250k bpd BUA refinery in Akwa Ibom, and the Waltersmith 10k bpd modular refinery in Imo among others; we are looking at a combined total capacity of nearly 1m bpd supply of refined petroleum (compared to our current 427.7k bpd/68 million litres daily imported petrol consumption), and the resultant boost in supply is expected to further drive down prices over time.

Other benefits of the refinery include:
- Over 100,000 jobs created
- Saved Forex spent daily on petrol importation (about $23.3 billion annually, reducing demand pressure on USD)
- Adequate local supply of PMS, AGO, DPK & Jet A1 fuels.
- Increased competition in deregulated downstream sector in favor of Nigerians.
- Increase in FG Revenue from earnings from dividends (20% investment in refinery), taxes and other levies.
- Increased Forex liquidity from export earnings
- Adequate local & export supply of Petrochemical feedstock (PPE & PPL ) previously imported with USD by manufacturers, while stimulating manufacturing activities.
- Improved supply of Urea for Fertilizer resulting in improved agriculture and food production.
- PPL, PPE & Fertilizer importation currently costs the FG $3 Billion in Forex, to be eliminated.
- Creation of allied industries and appreciation in real estate value around the refinery.
-Nigeria sheds the embarrassing label and internationally acclaimed, disgraceful paradox of being a major crude oil producer that still imports refined Petrol. My humble two cents.

vanbonattel:
That's a good one. Congrats

nairalanda1:


Will the price come down? Probably, but high costs make that a bit impossible.

Would it reach less than N200 per liter? No.