Cognitivereason:


Lol...ur getting it all wrong...
The only benefit of refining fuel ourselves is that it get to save us Forex...
It doesn't and can never equate to a cheaper price...Brent oil is selling for above $80 ..if a company buys it..there is a particular cost they add to it (cost of refining) and they add their profit margin...by the time they begin to resell the byproduct.. In this case...Petrol...they should sell it for around $1...
If u check almost every African and Asia countries the cost of a litre of petrol is around $0.9 to $1..for a litre...
Now convert $1 to naira and see the price..
.
The only way fuel can be cheaper if subsidies are removed is for CBN to reverse dollar rate to less than N150 for a dollar..
Or they sell crude to Dangote at a subsidized rate which goes against the whole idea of deregulation and subsidies removal

TheDemola:


Really?

Johnrake69:


You're the one getting it all wrong with your analysis. Check how much pms is sold in other oil producing nations Vis-à-vis their earning power. We pay really high for it.

And saying the only benefits of refining ourselves is saving us forex means you have no idea of the cost components of petroleum products.

Nigerians are already poor through our earnings. If we want to measure up internationally then wages and salaries have to reflect same. If not, we're moments away from Doomsdays. What do you think is fuelling kidnapping and ritual killings?

xelly:


Hope you won't complain when local man sells yam at international price?

lexy2014:


what is the massive never been seen kr heard effect on Nigeria's economy that it will have on the economy?

Heavance:
Election don come again, all of a sudden it will begin operation.
Same thing they claimed before 2019 elections.

Johnrake69:


What kind of analysis is this? And who told you fuel is supposed to sell for #340? Do you have any idea of what makes up the cost?

If we refine fuel ourselves fuel shouldn't sell for more than #165.

Johnrake69:


You can't compare Niger republic to the Nigerian market. Stop making up excuses for Dangote. He's killing the average Nigerian with his business practices.

If not for Monopoly which he enjoys. Cement can sell for less than #1500. The Chinese manufacturers import almost everything, pay better wages and still sell cheaper than Dangote.

obailala:
There're several other producers of cement in Nigeria who also sell their cement at cutthroat prices (some possibly even higher than Dangote). But somehow. Dangote seems to get all the blame all the time.

ufotunang:
let this refinery start to work .so that prices of fuel, kerosene, disel can be cheap

Johnrake69:


He has 60% of the market. He determines the price.

obailala:
Lol.. N165?

How much do you think it sells for in other countries where they also refine?

Even if we refine locally, I doubt the cost would be less than N200 except subsidies are paid. And of course, the private refinery owners have profits to make and a huge loan to repay.

Johnrake69:


What's the cost of labour and other factors in those countries you're making the comparison with?

Fuel is priced 40 cent per litre in Saudi Arabia. And can you compare the minimum wage?

The problem with Nigeria is that even the enlightened folks are quick to jump into comparison of international standards without deep understanding of the peculiarities of the Nigerian situation because they are well off.

Forgetting that it's in the interest of every one for us to have a stable economy where an average Nigerian can survive doing any job they find.

Let's keep supporting international standards until the poor will have nothing else to eat than to eat us all. It's already happening with Kidnapping and organ harvesting.

obailala:
Between 50-60% of Nigeria's forex inflow is currently spent importing petroleum products. If Nigeria should stop importing those products, do the maths...

Cognitivereason:

Yam doesn't have any political influence like oil..it doesn't have a body comprising several countries to regulate the price..so there is no such thing as international price as opposed to oil

lexy2014:


How did u arrive at your 50-60% figure with regards Nigeria's forex? Even if it is so, how will that result in "massive never been seen kr heard effect on Nigeria's economy that it will have on the economy"?

GIANTPLUSHUB:
Let's see how it goes

Super Eagles

Super Eagles

xelly:


Crude oil or PMS?

Johnrake69:


Hehehehehehehe... How much Please? Try extort Dangote make we see. You wan dey argue wetin? Dangote and Bua pays #25 per ton for limestone.

I have done business moving with trailers. Them no born any tout or security operatives for road to block Dangote truck.

If you talk about interest rate and cost of capital that one no touch Dangote. He gets all the good rates that can only be a dream for an entrepreneur in Nigeria. Dangote between 2010 and 2015 made over #1Trillion in profit and paid only #12Billion in tax because of pioneer status they kept granting him.

Cognitivereason:

Crude oil bro...it the cost of crude DAT determine the Cost PMS

obailala:
My bad, I may have overestimated; 40% was the actual figure quoted (see link below).
https://www.thisdaylive.com/index.php/2021/10/15/emefiele-nigeria-spends-40-of-fx-on-importation-of-petrol-others/

Next point to note is that the refinery will produce more than our current national consumption so that means additional forex inflow into Nigeria from the excess petroleum products export (remember you make far far far much more money exporting refined products than exporting crude). Verdict = More Fx inflow!

Also note that in addition to the primary petroleum liquids, for raw materials such as plastics (polyethylene and polypropylene) of which we currently import, there would be a turnaround as we would go from net importers to net exporters overnight. Verdict = More forex inflow!

If you take a look at what's been going on with the economy, you'd agree that the biggest problem we've had in the last few years has been the forex scarcity and its effect on the exchange rate (i.e. Naira devaluation), which in turn has driven inflation through the roof. Fix the forex scarcity issue, you'd fix the Naira devaluation problem and when you fix that, you put a halt in inflation. Yes it wouldn't be back to N150/$ but there would be notable improvement from the current N570/$.

So yeah, I termed it a "massive never been seen or heard effect on Nigeria's economy" because this will be the first time a single project endeavour can change the countries fortunes almost overnight. Just watch out, I wouldn't be surprised if saboteurs in high places start trying to sabotage the project cos for everything you see which is wrong with NIgeria, there are principalities in high places who benefit.

obailala:
Wetin concern election and private refinery?... Meanwhile Dangote Group announced since 2020 that the refinery will be ready in 2022. So whats the link with election?

Heavance:

https://egyptoil-gas.com/news/nigerias-dangote-oil-refinery-to-operate-by-2019/

We don hear this thing tire before election.

obailala:
Yeah but wetin concern private refinery and electuon?