Alexgeneration:

Buhari gave out $1 million of our money to Afghanistan and you're here giving me reasons why we cannot do what it takes to develop this country .

You're paying millions to refine outside, we say pay the same millions to refine here and you begin to reel out excuses.

Later when people cuss and hate on this country, you lots begin to mouth Patriotism like it's going out of fashion.

HardMirror:
he did not abuse you. You are indeed a joker.

Alexgeneration:

Buhari gave out $1 million of our money to Afghanistan and you're here giving me reasons why we cannot do what it takes to develop this country .

You're paying millions to refine outside, we say pay the same millions to refine here and you begin to reel out excuses.

Later when people cuss and hate on this country, you lots begin to mouth Patriotism like it's going out of fashion.

HardMirror:
he did not abuse you. You are indeed a joker.

CyberHustle:
you are so funny. Foreign refiners pay more and incur more production cost. What's your point exactly?

backbencher:


Well, we just don't buy from standard foreign refineries. We buy from (by EU standards) substandard, which helps keep subsidy costs and import costs low. (If we bought from standard refineries, we would be buying fuel above N400 per liter, even with subsidy).

There is an article in the UK GUARDIAN on the matter....link here

Also, domestic refining does not mean fuel below N200. Niger has a domestic refinery, which is supplied from crude oil from a domestic well (not imported) and they sell fuel at N350 a liter there. Costs of business , salaries, transporter's costs, etc

backbencher:


refining at home does not mean fuel would cost N162 or below.

HardMirror:
we are talking about standard modular refineries. They are not built to have return on investment in few months. Even if the cost is $100million, there are lots of businessmen that are ready to put their money down for the long term haul. You think telecoms is also cheap? Same thing can be done in the petroleum industry

erico2k2:

why cant the FG pay the subsidy to the modular refineries so they can function. at least we know where our petrol is coming from and the volume can be checked.
Answer, fraud wil be reduced so they dnt like this.

CyberHustle:
nobody is saying the above. What is happening is that govt should buy at prevailing Intl market rate from local refiners too same way they have been doing for foreign refiners for ages.

backbencher:


1.Except that telecoms was allowed to operate at a profit from day one

2.It matters not how many people put their money in something, if the something they put their money in cannot operate at a profit, then it won't work

You want cheap fuel. I think it isn't realistic. On that we can agree to disagree

Good afternoon and have a prosperous year.

mrvitalis:
This is what I was saying for long people abused

TheGoodJoe:


You are forgetting our government signed MOU to import Petrol from Niger at the so called astronomical cost but it is a taboo for them to do the same for a local refinery

They should quit the joke.

By the way, Niger produces 13,000 barrels of crude per day, while Nigeria produces 2.5 million barrels per day.

There is no way Niger's Crude production can meet the demands. They are likely importing crude.

Niger has a long history of petroleum exploration dating back to the 1970s. However, it is only recently in 2011 that the petroleum industry of Niger was born with the opening of the Agadem oilfield and the Soraz refinery near Zinder. The oil and gas extracted from the Agadem field are processed at the Soraz refinery and products (gasoline, diesel and liquified natural gas) are primarily for domestic consumption. Since the beginning of the oil extraction

The Government has no excuse why they can not support local refinery operators.

backbencher:


And once they do that they should sell at a price higher than the market rate so that they can make a profit, not the one where they buy at N282, sell at N162 and pay a subsidy that does not cover the difference

That's where you and I disagree on. I guess we can leave it there. Cheap fuel is not realistic.

HardMirror:
was Nitel being subsidized before?

I have gone through this thread from page one. You have nothing reasonable to say. People have asked you the key questions we should be asking and you have been busy gaslighting. Please stop quoting me you dont know what you are talking about

CyberHustle:
they will sell any price they like. They can sell lower to subsidize but have no business selling higher to make profit from the owners of NNPC.

Alexgeneration:
Counter his argument of giving one oil well to one modular refinery to produce and sell to their local market.


I'm waiting.

freshkpomo:

Now I see why people always insult you because you don't think with your head at all. Do you know the implication of this on the cost of transportation? Do you know that once transport cost increases so many goods will increase along? So you know how much food stuffs will cost at that rate? Yiu are either dumb,or yiu are heartless..

backbencher:
What the NNPC boss is saying is simple.

Modular refineries can only work when government allows petrol to be sold at market price, otherwise they won't make enough of a profit to function well otherwise.

backbencher:
.

The problem is, government is not allowing the local refinery operate at a profit, by insisting that the price of fuel at the pump must be below the production price...and even buying it from Niger means we sell at a loss of N150 or thereabouts...which the subsidy paid cannot cover.(We buy at N350 from Niger and sell at N162 at the pump and pay subsidy to cover the loss. Does not make sense)

I think we agree there should be local refineries, where we disagree is the price they should sell at.



Yes, by removing subsidy.




Well, if you check their company (the chinese company involved)'s website they are a crude oil producer, and they meet their refinery needs from their domestic crude. The following quote comes from the Wikipedia page on PETROLEUM INDUSTRY IN NIGER



They have an oilfiled...Agadem.

No imports.



I think we agree 100% on that, where we disagree is how we should support them. For me it means letting them operate at a profit, even if it means we all pay above N300 or more at the pump.

backbencher:
What the NNPC boss is saying is simple.

Modular refineries can only work when government allows petrol to be sold at market price, otherwise they won't make enough of a profit to function well otherwise.

backbencher:
What the NNPC boss is saying is simple.

Modular refineries can only work when government allows petrol to be sold at market price, otherwise they won't make enough of a profit to function well otherwise.

sammhi:

These guys are just comedians
Sell to your local refineries for domestic consumption at a lower price ..is this a rocket science ?
First , what's cost of production ? To produce at home is far cheaper because cost of shipping ,barging etc are off . Fuel is always cheaper with oil producing countries Nigeria can't be an exception
Truth is these guys don't want importation to stop if not how will they get 3 trn to loot so easily .hence they come up with lame duck excuse

jmoore:
Dumb reasons!!!

They can produce and export to neighboring African countries.

They can produce and the government will buy it at subsidize rates too.

It is cheaper to subsidize locally refined petrol than imported petrol.

backbencher:
.

The problem is, government is not allowing the local refinery operate at a profit, by insisting that the price of fuel at the pump must be below the production price...and even buying it from Niger means we sell at a loss of N150 or thereabouts...which the subsidy paid cannot cover.(We buy at N350 from Niger and sell at N162 at the pump and pay subsidy to cover the loss. Does not make sense)

I think we agree there should be local refineries, where we disagree is the price they should sell at.



Yes, by removing subsidy.




Well, if you check their company (the chinese company involved)'s website they are a crude oil producer, and they meet their refinery needs from their domestic crude. The following quote comes from the Wikipedia page on PETROLEUM INDUSTRY IN NIGER



They have an oilfiled...Agadem.

No imports.



I think we agree 100% on that, where we disagree is how we should support them. For me it means letting them operate at a profit, even if it means we all pay above N300 or more at the pump.

backbencher:


The mistake you are making is assuming domestic production is cheaper.

It wont be..you still have to pay maintenance, upgrade, taxes, staff salaries and welfare and in addition add the marketers and teansport cost.

At the end it won't be be below 200 naira per liter of pms.

backbencher:


The point of the report is that subsidises , which is part of the 'regulated price' system, won't let the refineries operate at a profit.

backbencher:
.

The problem is, government is not allowing the local refinery operate at a profit, by insisting that the price of fuel at the pump must be below the production price...and even buying it from Niger means we sell at a loss of N150 or thereabouts...which the subsidy paid cannot cover.(We buy at N350 from Niger and sell at N162 at the pump and pay subsidy to cover the loss. Does not make sense)

I think we agree there should be local refineries, where we disagree is the price they should sell at.



Yes, by removing subsidy.




Well, if you check their company (the chinese company involved)'s website they are a crude oil producer, and they meet their refinery needs from their domestic crude. The following quote comes from the Wikipedia page on PETROLEUM INDUSTRY IN NIGER



They have an oilfiled...Agadem.

No imports.



I think we agree 100% on that, where we disagree is how we should support them. For me it means letting them operate at a profit, even if it means we all pay above N300 or more at the pump.

backbencher:


And once they do that they should sell at a price higher than the market rate so that they can make a profit, not the one where they buy at N282, sell at N162 and pay a subsidy that does not cover the difference

That's where you and I disagree on. I guess we can leave it there. Cheap fuel is not realistic.

uccheks:
I'm I missing something. You pay subsidy on imported products with landing cost inclusive. Yet you can't pay subsidy to encourage local modular refining pending when you are sensible enough to deregulate. It's either I'm too stupid to understand what's up or the MD is a Duns. Irredeemable Clowns