Keneking:
They can do whatever they want...

Aura2:


I don't think the 145 naira peg is for the marketers, the minister has clarified that, 145 is NNPC's peg, because the minister is using the DSDP programme as NNPC's import quota, with low crude price, the landing cost of NNPC's supply is way below 145, however to avoid long queue in big cities, NNPC intend to sell same price with the marketers which will become a revenue earner for the FG.
same way we earned over recovery at the beginning of the year.

deking:
Space booked.

But the truth is we will get out of this.

idupaul:
The way it's going I see Buhari being disgraced

Slickest:
This matter is lyk a fat man(marketers) who claims he can work but his services comes with a high price, the owner (NNPC/FG) decided to do 80% of d job and leave d 20% for d fat man, pays d fat man some amount of money(subsidy) so he doesn't miss his profit.

Now the owner tells d fat man to work and make his profit leaving a level playing ground......now fat man no wan work, he's used to not workin nd getting paid....


These marketers are just bunch of parasites, they still don't want to import but they sell for 145 per litre




God bless Nigeria and its habitants

Goke7:
the marketers can never survive without subsidy, that's what has been keeping them in business for so long which also makes them credit worthy to banks, now that subsidy is gone, most of them will wind up soon. Only the major marketers can survive post subsidy regime.

Most Nigerians don't understand this. The only solution to the fuel crisis, is working refineries period.

Brainy007:
In few hours again, we will hear "16 ships loaded with petroleum products to arrive at the port this weekend as marketers resumes importation"

Aura2:


But you read that the Q4 2015 subsidy was recently paid ie almost 8months of debt on the marketer, don't you think he would have preferred getting his money on delivery?
A better explanation is that secondary market doesn't even have enough, ask any BDC for $1m, they will start calling all the geopolitical zones in Nigeria let alone marketers who trade in hundreds of millions.

Boss13:


Good analysis. I believe they were using government funds to sustain their business. Now they are in a fix and their survival will depend on how innovative and competitive they are.

As usual, the oil marketers want things easy.

Goke7:
the marketers can never survive without subsidy, that's what has been keeping them in business for so long which also makes them credit worthy to banks, now that subsidy is gone, most of them will wind up soon. Only the major marketers can survive post subsidy regime.

Most Nigerians don't understand this. The only solution to the fuel crisis, is working refineries period.

gabicon:

Nigerian refinery and their capacities

Kaduna refinery = 100,000 barrels per stream day (bpsd) (1975)
Warri refinery = 100,000 bspd (1978) + 25,000 bspd (upgrade 1987) =125,000 bpsd
Port Harcourt = 60,000 bspd (old 1965) +150,000 bspd (new 1989) =210,000 bpsd
Total installed capacity = 435,000 bpsd

How many gallons of petrol and diesel in a barrel of crude oil

A barrel of crude oil = 42 gallons
A barrel of crude oil = 19 gallons of petrol (71.92 litres) [1 gallon =3.785 litres]
= 12 gallons of diesel (45.42 litres)

Total petrol and diesel output at 70% efficiency

@70% efficiency per day =70%*435,000 bpsd = 304,500 bpsd
Amount of petrol produced @ 70% efficiency = 304,500bpsd * 71.92 =21,899,640 litres per day
Amount of diesel produced @ 70% efficiency = 304,500bpsd * 45.42 =13,830,390 litres per day

Average daily consumption

I couldn’t find any recent data for the total petrol consumption of the year 2014, but according to The Petroleum Products Pricing Regulatory Agency (PPPRA) in 2013 the annual consumption of petrol stood at 39.66 million barrels (6.2billion litres).
Convert barrels to litres at (1 barrel =158 litres) [US barrel to litres]
If the yearly consumption (2013) =6.2 billion litres
Daily consumption (2013) = 6.2billion litres/365 = 17,167,890.41 litres per day

The above information is purely based on standard best practices, but after digging further I discovered statistic for refined products in kaduna refinery as follows
No Product Production Rate
1 PMS 3,857 MT/DAY
2 KEROSENE 1,686 MT/DAY
3 AGO [DIESEL] 3,000 MT/DAY
4 ASPHALT 1,796 MT/DAY
5 LAB 91 MT/DAY
6 BASE OILS 657 MT/DAY
7 LPG 620 MT/DAY
8 FUEL 2,100 MT/DAY

This infers that kaduna refinery only produces 3857 metric tons of petrol per day which is about 5.2 million litres daily assuming the density of petrol is 737.22kg/m3. This production value is 2 million litres shy of the internationally accepted rate which could be due to the age of the plants technology.

Source
NNPC. (2005). Kaduna Refining & Petrochemical Company (KRPC).Available: http://www.nnpcgroup.com/NNPCBusiness/Subsidiaries/KRPC.aspx. Last accessed 10th June 2015.
NNPC. (2005). Warri Refining & Petrochemical Company (KRPC).Available: http://www.nnpcgroup.com/NNPCBusiness/Subsidiaries/WRPC.aspx. Last accessed 10th June 2015.
NNPC. (2005). Port Harcourt Refining Company Limited (PHRC).Available: http://www.nnpcgroup.com/NNPCBusiness/Subsidiaries/PHRC.aspx. Last accessed 10th June 2015.
Energy information Administration. (December 16, 2014). How many gallons of diesel fuel and gasoline are made from one barrel of oil? Available: http://www.eia.gov/tools/faqs/faq.cfm?id=327&t=9. Last accessed 10th June 2015.
Chineme Okafor. (07 Feb 2014). PPPRA: Nigeria Consumed 39.66m Barrels of Petrol in 2013. Available: http://www.thisdaylive.com/articles/pppra-nigeria-consumed-39-66m-barrels-of-petrol-in-2013/170803/. Last accessed 10th June 2015.

modath:


Every other plan is just short term fix...By the way, most Nigerians do but the ones crying the loudest can't be seen to agree with that point cos it will lead to the question they dread the most; "why are refineries not working" or why didn't one of the over 20 licenses issued for private refineries come on stream....

They won't have response and they can't add zombie, dullard to that argument..

EzeRedd:
What malarkey is this? After we have accepted the removal of subsidy(despite our suffering) as the way forward, this marketers are reneging on their agreement with the FG? It seems they are ok with our perpetual suffering. I don't blame them. If our leaders had put the right infrastructures in place, I don't think this would be happening. it's left for the present government to learn and do the right thing.

Goke7:


so the cbn should continue to give them dollars at the rate of $197 for them to sell at N145 [which is what the marketers want] you don't get it, these marketers can't survive the post subsidy regime. The money they collect from Govt as subsidy even if its 8 or 10 months later is what makes them stay afloat. If I tell my bank who gave me loan that Govt is owing me, that bank is ready to wait forever to get that money cos Govt will surely pay even with the differentials in value of the naira against the dollar. This is what makes the subsidy regime so profitable to these marketers knowing that Govt can't cope too long with a fuel scarcity as the Public will turn the heat on Govt.

The marketers are pretenders, they still want subsidy, forget the deregulation message they preach

lozanni:

The Oil importers agreed to a Pump price increase of N86.05 to N145 for Petrol (PMS) with the Federal Govt. on the condition that that they source the forex for imports from independent sources, but have now turned around to say they need forex from the CBN.
Its either the marketers are trying to be clever through getting cheap forex from CBN and still selling at the new price of N145 per liter of fuel, thereby making a super-abnormal profit or they have not been, genuinely, able to source for forex from independent sources, to fund the level of import of petroleum products required of them (which was my fear at the beginning).
I hope this thorny issue is resolved very soon to avoid unimaginable fuel queues and the attendant hardship for Nigerians.

Aura2:


what do you understand by subsidy?

Goke7:


so the cbn should continue to give them dollars at the rate of $197 for them to sell at N145 [which is what the marketers want] you don't get it, these marketers can't survive the post subsidy regime. The money they collect from Govt as subsidy even if its 8 or 10 months later is what makes them stay afloat. If I tell my bank who gave me loan that Govt is owing me, that bank is ready to wait forever to get that money cos Govt will surely pay even with the differentials in value of the naira against the dollar. This is what makes the subsidy regime so profitable to these marketers knowing that Govt can't cope too long with a fuel scarcity as the Public will turn the heat on Govt.

The marketers are pretenders, they still want subsidy, forget the deregulation message they preach

lustychima:
Watch how pple wit no knowledge abt the subject matter come here and rant like some few above me



The only and best solution out of this mess IS A WORKING REFINARY just like me friend above rightly said

leghagha:
When the scarcity comes they will blame PMB

Goke7:
the marketers can never survive without subsidy, that's what has been keeping them in business for so long which also makes them credit worthy to banks, now that subsidy is gone, most of them will wind up soon. Only the major marketers can survive post subsidy regime.

Most Nigerians don't understand this. The only solution to the fuel crisis, is working refineries period.

Aura2:


So in your undiluted common sense, to land a product at say 146, you will sell 86 and collect 60 naira in 8 to 10 months in a rigorous exercise. (subsidy regimen). Note that 60 naira in their line of business is running into millions of dollars, sourced through bank loans
Without subsidy, you can land it for 146, and collect your 146 at the depot without hassles, which do you think they prefer?
Did you say the banks will wait forever? with inflationary trends moving up on a weekly basis?
Don't bother answering the questions, you sure have not done business in your life.

WildChild00:
The inconsistence of the cbn and the govt is just anofe for any business man/woman to worry about, govt policies can change over night!