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Nairaland Forum / Nairaland / General / Politics / Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL (25800 Views)
After Promising New Petrol Price, NNPCL Moves To Make Cooking Gas Cheaper / Dangote, PH Refineries Face Crude Shortage Over Low Production – FG / Market Forces Responsible For Hike In Fuel Pump Price - NNPCL GMD, Kyari (2) (3) (4)
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Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Chuknovski(m): 9:40am On Jun 02, 2023 |
Sirlins: Abi oo, ask them ooo |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Image123(m): 9:42am On Jun 02, 2023 |
LordReed: He's speaking to Nigerians. Whatever significant impact is eroded by removal of subsidy and Nigerian market conditions. |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by LordReed(m): 9:47am On Jun 02, 2023 |
LordAdam16: So you are saying the removal of the cost of transportation, exchange rate charges, insurance, etc. will not significantly impact that cost? |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by yaki84: 9:48am On Jun 02, 2023 |
inoki247:Which one be landing price? Just say import tax abi duties and shipping cost will be off... 1 Like 1 Share |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by yaki84: 9:51am On Jun 02, 2023 |
Freelancer2020:How much be local rice,, how much be foreign rice? Some China slippers even cost lesser than naija made slippers... Cost of production varies in every country... In Nigeria cost of production includes sum total of all u spend before getting ur product, From bribing officials, paying tax to communities, local govt, state govt and fed govt,. Other sundry charges and security Levy both to state, local and fed govt plus hiring police and army for protection plus wages to workers both real n ghost staffs... So it cost more to do business in Nigeria than in any other country 2 Likes 1 Share |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Johnn74: 9:53am On Jun 02, 2023 |
inoki247:Please, do u know the accurate price? How much is landing price per barrel please? (Ibarrel=158.987~159litres of crudeoil) yaki84:I know import tax duties wella & shipping cost. (via Air,(train) freight; sea, pipelines etc etc ). Just came across term landing price here. And wouldnt mind the poster enlightening me more about it also or anyome knowleadgeable about landing price. |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Menclothing: 9:58am On Jun 02, 2023 |
ignis: Dangote won’t be getting crude oil free he will buy it normal opec world price all refinery are buying it 2 Likes 1 Share |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Johnn74: 10:01am On Jun 02, 2023 |
Menclothing: |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Tealcrestmedia(m): 10:07am On Jun 02, 2023 |
As long as the masses still have the capacity to accommodate all these cost increments, then no wahala. But there is always an elastic limit and a breaking point during every stress test. |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by 43Ronin: 10:11am On Jun 02, 2023 |
blaise26abj:They all invested in his refinery all the tinubu them. That is whybthey want to make him a Monopoly in the oil market so that they can all cash out. How can we have crude in abundance and still be paying high for it despite the working refineries. I have said all this politicians and their cronies need die b4 naija go better 1 Like |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Bodexinvest: 10:13am On Jun 02, 2023 |
Sometimes I wonder who trained these ones? 1 Like |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Ayomivic(m): 10:14am On Jun 02, 2023 |
Godszilla: This man need to be relieved of his position. He had became wizard there. 1 Like |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by 43Ronin: 10:21am On Jun 02, 2023 |
Menclothing:stop falling for lying politicians shìt. Dangote will be refining 350k bpd per day. a barrel of crude contains 135ltr of fuel. dangotes refinery will spend 25m naira on those barrels daily (@$72 intl price)but those barrels will produce pms worth 47.2m litres(and that's just PMS). now let's assume he sells for 200 per litre that means daily revenue from pms alone will be 10Bn. you really mean to tell me that dangote will not make any profit from the 10bn 1 Like |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Samunique(m): 10:24am On Jun 02, 2023 |
1 Like |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by DOptical: 10:24am On Jun 02, 2023 |
Me I sha want all the oil block owners to be removed from our oil block. Useless thieves siphoning our wealth for themselves. |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by AareGaa: 10:29am On Jun 02, 2023 |
gimakon2: Ibeto is an importer of cement, he does not produce cement |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by olisefom: 10:30am On Jun 02, 2023 |
Marlodah: A very messy situation the government is, no doubt. |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by fitinwell: 10:30am On Jun 02, 2023 |
Godszilla: Na Dangote finger print i dey see for NNPLC ooo.. Dangote Group don penetrate government... |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by gimakon2(m): 10:30am On Jun 02, 2023 |
AareGaa: Are you sure? |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by Reelz: 10:31am On Jun 02, 2023 |
Pls replace this mele kyari with another quality person pls.. he has done his bit. |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by ifeco4(m): 10:34am On Jun 02, 2023 |
juvewalex: They will probably impose a huge tax on the refinery which the end users will end up paying. Evil government. 1 Like |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by xangerar: 10:35am On Jun 02, 2023 |
juvewalex: You can imagine! I was wondering alike. How can you say that a product made in Lagos and another that travelled over continents with attendant shipping cost would still be the same price and there are no extraneous reasons for that? Even when you order on Jumia shipping and delivery cost makes a difference. This there economics ee! 1 Like |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by AareGaa: 10:35am On Jun 02, 2023 |
Great0ne1: Go and get a licence to start your own refinery and stop envying Dangote. The envy and bitterness in you won't make you live long. That's why people from your region hardly live long. Bitterness has been killing them since 1967 |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by DOptical: 10:38am On Jun 02, 2023 |
USA refined and sell their fuel at 0.55 dollars to their citizens. Which is roughly 225 naira rate and don't forget it's in their own rate over there which is cheaper than naira. But you're telling us that after the removal of all the logistics while refining our own oil in Nigeria, we would still be paying enormous fees? Dey play. When is Tinubu going to appoint his own NNPC director? That kyari no be am. I wonder what that CBN governor, Emefiele is still doing in office too. Also, Tinubu needs to look into our oil blocks and their owners. Remove all oil block owners. Enough is enough! All the oil block owners are so rich and affluent as a result of siphoning our wealth at the expense of the masses. The audacity! |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by ignis: 10:39am On Jun 02, 2023 |
Menclothing: Are Nigerian getting it freely now? |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by puregoldsusan(f): 10:42am On Jun 02, 2023 |
But my question is why will It not reduce the price? While will the price of a domestically produced commodity not be cheaper than the the one imported? You said they will add the cost of production and sell at the same price, are the foreign refineries not adding thier own costs of production too? Why should the domestically produced not be cheaper, given that the cost of importation has been removed and the raw materials are domestically acquired? I really need explanation |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by MichaelSokoto(m): 10:43am On Jun 02, 2023 |
43Ronin:Pls don't mind them. I have done all dis calculations in d early days of Buhari's admin, it was at dat point I gave up on both GEJ's PDP & Buhari's APC rulerships! Would u even believe if I told u dat there's nothing wrong wit our refineries? and dat there's deliberate sabotaging forces on it? Do u know d enormous profits coming out of a single barrel of crude? These ppl are aaaaalllll thieves! |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by mayo47(m): 10:44am On Jun 02, 2023 |
People need to remember that Dangote refinery is a private enterprise and not a public enterprise. The FG is also a shareholder in Dangote Refinery via NNPC and will always want to max out profitability irrespective of change in dynamics. Its a capitalist market. juvewalex: |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by LordAdam16: 10:45am On Jun 02, 2023 |
LordReed: These charges are not as heavy as you think when you compute them to a per unit (liter) cost. I'll use the examples. "Cost of transportation" by oil tanker comes out to circa 1 cent per liter. That's like N5 at official exchange rate. It does fluctuate rapidly tho', so it can get much higher, but that is generally short lived. Since the start of the war, it's been about 2-3 cents. Exchange rate charges are irrelevant. The refinery would fund most of their liabilities in $ and will price their products similarly. Nigeria will sell oil to Dangote in $ at official exchange rate. I'm very certain civil servants would not want to hear that the government can't pay salaries because we're selling half of our precious 1.2m barrels per day to Dangote at giveaway prices. The governors would not accept it. They'll take NNPC/FG to court. Accordingly, Dangote will sell back to us in $ at official exchange rate. Similarly, insurance rates are almost negligible, especially since Gulf of Guinea piracy was subdued. Further to these facts, the Dangote Refinery has been a very pricey endeavor. Whatever efficiencies can be scraped from eliminating charges related to importing petroleum products will be offset by costs like interest on the loans (he's started paying them), insurance of the complex, and other expenditures. I think one of the few places he'd see significant lower operating margins compared to his competitors is personnel costs. And if I underwrote his loan, I sure as hell will be pissed if he directed that saving to reducing the price of the products than clearing his obligations. The only thing that'd keep Dangote and his backers honest is permitting importation of PMS. Seun alluded to it in one of his posts. He wants 50 companies approved to import gasoline. I think that's too many. 10 would do. This way NNPC; the independent importers; and refinery owners like Dangote, BUA, and co will duke it out for market share. NNPC already imports enough gasoline for the entire West African sub region. Dangote's refinery can fully cover our current gasoline needs. So giving more import licenses out will create a downward pressure on prices. There'd be collusion of course, since this is Nigeria. But there'd be a limit to any price fixing. -Lord 1 Like 1 Share |
Re: Dangote, PH Refineries, Others Won’t Change Fuel Price – NNPCL by leanonme82: 10:45am On Jun 02, 2023 |
juvewalex: He explained it very well on AriseTV, this short article doesnt. He said the cost of freight will be gone and its about N3 on the litre and wont be a significant difference on pump price. He said dt what local refining will do over time is drive costs down across the whole west africa since there will be more efficiency in the system and production costs usually come down with efficiency. |
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