Seven Major Marketers Get Approval To Sell Dangote Fuel - Politics (4)

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Seven Major Marketers Get Approval To Sell Dangote Fuel - Politics (4) - Nairaland

Nairaland Forum / Nairaland / General / Politics / Seven Major Marketers Get Approval To Sell Dangote Fuel (30282 Views)

Marketers Will Pay Naira For Dangote Fuel, Says IPMAN / Fear In NNPC As Dangote Struggles To Get Approval To Operate Refinery / Dangote's Fuel Monopoly Risks Soaring Petrol Prices - Joe Ajaero (2) (3) (4)

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Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by leokid866: 9:23am On Jan 15

skj1377:

Oga , what are you saying?? The crude was given to Dangote ( he has not paid) under a special arrangement by federal government. He insisted he wanted to use Nigerian crude and not foreign crude as was initially suggested to him . Dangote will purchase the crude in Naira and sell in Naira. If he exports refined products he will be paid in Dollars. The issue is most Nigerian elite have offshore accounts for their companies so I strongly believe the export proceeds will be sent to his offshore account so Nigeria does not benefit anything.

All Crude is sold in Dollars, he could have paid in Naira using CBN rate but don't believe that he was not given a dollar per barrel rate.....for Nigerian marketers they will pay in Naira but will be pegged to the per barrel dollar rate, for international export they will pay in dollar through the CBN who in turn will pay Dangote the Naira equivalent. .....and you forget the NNPC owns 20 percent of the company, you think the support the buhari government and them Tinubu gave Dangote was just so he can carry dollar and be flexing while the rest of us look on? Long before now the government has said they will pay him Naira while the CBN handles all Dollar transactions at their own rate......why do you think the CBN is shoring up its office in Lagos?

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Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by waice6571: 9:28am On Jan 15

Beverlyjean:
The only thing I don't understand is the production of only diesel and jet fuel... and not pms... but diesel and jet fuel are by- products from pms .... so how are they now producing diesel and jet fuel without pms

It is safe to belief that PMS line of production would be active but, there's an agreement in the deal all PMS will be channelled to some quarters outside the country for settlement of some deals

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by kenmaro: 9:33am On Jan 15

millionboi2:
How much make una talk na

Their body language will tell you not to expect any substantial price differences as they're just going round and avoid the pricing. The current pump prices have been strategically set to welcome this indigenous refineries. They will present an epistle explaining to us why the prices cannot be adjusted. Let's sit and watch this movie. Cheers!

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by macanu(m): 9:39am On Jan 15

I hope they will buy it using naira only, the refinery has to accept Naira only that will help us and the economy

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by sanerugwei: 9:50am On Jan 15

Nothing like clandestine... when he is not doing secret bunkering... if he is producing petrol he will say, he cannot hide it.
The big question is how can the refinery be producing diesel and not first produce petrol as one of the first products of the refining process.
Is it possible to produce diesel with petrol in the first instance in a commercial refinery. Petrol and diesel which one has higher boiling point?
The whole story is not adding up, we need more explanation, but make dem no explain tire o.

christejames:
I am having the haunch that this Dangote Refinery is also producing PMS (fuel) but they are clandestinely hoarding it waiting for the right prize that will favour them before they dish them out to the markets...

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by sanerugwei: 9:53am On Jan 15

Someone finally asked a very intelligent and thought provoking question.
In a normal refining process, petrol and kerosene comes out first before aviation fuel and diesel which is even among the heaviest and last.
So the whole gist is still not adding up.

Beverlyjean:
The only thing I don't understand is the production of only diesel and jet fuel... and not pms... but diesel and jet fuel are by- products from pms .... so how are they now producing diesel and jet fuel without pms

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by SAMTOBIJU(m): 9:54am On Jan 15

Beverlyjean:
The only thing I don't understand is the production of only diesel and jet fuel... and not pms... but diesel and jet fuel are by- products from pms .... so how are they now producing diesel and jet fuel without pms

Too much sense dey worry you, oil dey your head abeg.

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by sanerugwei: 10:02am On Jan 15

You have a point.
Some people are just too shallow and gullible.
Has the current news contradicted what David said?
They said the refinery will start producing diesel and aviation fuel from ending of January o, after stock piling crude oil since from Dec 2023.
BTW Dangote also has full fuel importation license.
Can you see, offloading and onloading...

Question I will still want any good petrochemical or industrial chemist in the house to answer is: How possible to commercially produce only diesel and aviation fuel without other lesser boiling point derivatives like LPG, petrol, even kerosene?

epainos:

"Small small" bro.

David might be too hasty to push some things out at times, but oga...with what went internally in the business model (the corruption...settling here and there)...hmmm, I agreed with David.

However, FG and Dangote know how to do wayo na. See...some magic don happen to put temporary measures there.

Instead of cursing David...thank him for making FG and those demons quickly adjust to make this happen. If not for that guy who tackled them, this wouldn't happen fast like this.

So, "small small" oooo.

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Kakamorufu(m): 10:08am On Jan 15

The price won't go down. Okay no p

How will a full functional refinery will be able to refine crude oil and not have petrol as it's products but have diesel and Aviation fuel at ease. Make it make sense naw

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by reddingtonblack: 10:17am On Jan 15

PrinceofSarcasm:
Nigerians get ready to suffer. Fuel refined in Nigeria is being sold to you the citizens at imported prices. What an evil government.

Until you the citizens rise up and say enough is enough things will never change

Quit being pessmistic, your claims are baseless cos Dangote is yet to fix price or announce any price, the message so far is to ward Nigerians off unrealistic expectations/false hopes...

No matter the excuse Dangote or the govt have up there sleeves, Dangote fuel can't sell at same price as imported fuel, worst worst maybe #500 per litre.

Hopefully with the local refinery on board our demand for dollar suppose drop, should the Naira regain value the int'l pricing system won't be a nail in the ass

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Yvngex(m): 10:23am On Jan 15

DenreleDave:
How would this help the common man?

Common Man I'm so sorry for your illiteracy

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by reddingtonblack: 10:33am On Jan 15

Beverlyjean:
The only thing I don't understand is the production of only diesel and jet fuel... and not pms... but diesel and jet fuel are by- products from pms .... so how are they now producing diesel and jet fuel without pms

What you need to understand here is Pms is the end product of crude oil, these diagram should help

@ inception its more insightful to test your products gradually for feedbacks, if the by products are good technically the end product is good

kakamorufu be calming down, na phase by phase

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Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by epainos: 10:37am On Jan 15

Realtruth2023:

But Obasanjo brought about debt relief. So those 1960 debts don't matter anymore. So what in the hell are you saying?

Do you think everything was off? So na only Paris connection we dey borrow from? grin

Na you dey speak from hell...not me.

You want to turn yourself to nuisance who will keep asking for debt relief that may not come, or you want to be profitable?

So, you prefer to always go ask for debt relief? See...go check your brain. You need help.

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by omolola12345(m): 10:43am On Jan 15

This is not the news Nigerians are expecting. Tell us the price then we can know if it calls for celebration or not. At least with this development we expect fuel price to go back to #200 or 100 naira per litre in Nigeria.

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by firearcher: 10:48am On Jan 15

People like arguing sha. But what will be will be. One thing I know is that the impact of this on Nigeria economy will definitely be gradual, long term and positive.

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Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by bobbiiee: 10:51am On Jan 15

Fractional distilation of oil.

Beverlyjean:
The only thing I don't understand is the production of only diesel and jet fuel... and not pms... but diesel and jet fuel are by- products from pms .... so how are they now producing diesel and jet fuel without pms

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by noskcid(m): 10:54am On Jan 15

I wish him the best

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Paraman: 10:56am On Jan 15

epainos:
Dangote is now officially a Lagosian.

Very soon, he will be given a chieftaincy title in SW.

But the kind of messy corruption that will go on underneath this business.... Na small be the forex runs Eme-werey bursted out recently in comparison to what is going to happen.

You must be in a lot of pains for you to be writing this kind of dumb comment

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Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by nearline(m): 11:04am On Jan 15

One thing I know that most people might not know is that when it comes to refining crude oil, apart from fuels, there are plenty other by-products like bitumen and chemicals that can be used to make plastic and medicine and a whole lot of other things that we use everyday in homes and industries that dangote will still be making tons of money from. Fuel might be the major source of their profit but the other by-products will also fetch the refinery millions in profit so they should try and just make these petrol more affordable for us when they finally start making/selling that one to marketers.
Also given the chance all these said by-products will further allow us to industrialize nigeria faster than ever before since we will not need to be importing a lot of the chemicals we import today.

1 Like

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Paraman: 11:04am On Jan 15

omolola12345:
This is not the news Nigerians are expecting. Tell us the price then we can know if it calls for celebration or not. At least with this development we expect fuel price to go back to #200 or 100 naira per litre in Nigeria.

Is insane for anybody to think fuel from Dangote refinery will be #100 per litre base on all the factors on ground right now.

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Menclothing: 11:06am On Jan 15

Good news

Promo sales on men clothing

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by epainos: 11:08am On Jan 15

Paraman:
You must be in a lot of pains for you to be writing this kind of dumb comment

I've informed my secretary to send cash for your drugs since it is obvious you aren't taking them. The next bus stop is Yaba left again, so let us prevent that....you have been released once...don't allow yourself to be an intake again. Kindly drop your account details here. wink

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by fuckJones(f): 11:10am On Jan 15

The Nigerian National Petroleum Company (NNPC) Limited has said the daily average importation of premium motor spirit, also called 'petrol' between January and August 2022 was 68 million litres on which it pays N297 per litre to subsidize, now that we are not going to import again, will fuel be sold at leas than 200 naira?

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by stasius: 11:11am On Jan 15

So they can't sell as low as 400 naira?

Nonsense!!!

Abeg when is Portharcourt and Kaduna refinery starting work?

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Paraman: 11:12am On Jan 15

epainos:

I've informed my secretary to send cash for your drugs since it is obvious you aren't taking them. The next bus stop is Yaba left again, so let us prevent that....you have been released once...don't allow yourself to be an intake again. Kindly drop your account details here.

For writing the nonsense below

epainos:
Dangote is now officially a Lagosian.

Very soon, he will be given a chieftaincy title in SW.

But the kind of messy corruption that will go on underneath this business.... Na small be the forex runs Eme-werey bursted out recently in comparison to what is going to happen.

In few days time, your madness will be more than what can be handled in Yaba Left, they will send you to Aro, they are more equipped to cure you from this your terrible case

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by PHAYOL81: 11:16am On Jan 15

Nice

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by gadgetplanetng: 11:38am On Jan 15

NUPRC was also working to cut the cost of oil production to about $20 a barrel, down from between $25 and $40, by providing incentives to oil producers.
https://www.reuters.com/world/africa/nigeria-aims-raise-oil-condensates-output-26-mln-bpd-by-2026-2024-01-01/#:~:text=Two%20of%20three%20consultancies%20tasked,providing%20incentives%20to%20oil%20producers.

How much is a barrel internationally?
We sell as between 2x and 3x production cost.
I don't post carelessly.

Realtruth2023:

No Nigerian crude ain't cheap to produce compared to Arabian crude Nigeria's crude is expensive oooo

COMPAQ:

Who told you Nigerian crude is cheap to produce? Its actually quite expensive. Let me tell you 3 things (amongst many that make our oil expensive to produce)

1. NDDC levvy - 3% of oil companies annual budget
2. Host community development Levy - 3% of preceeding year operating expenditure.
3. Insecurity - oil companies pay huge amounts per year to secure producing assets and staff who move in the Niger Delta region.

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Indispensable85(m): 11:45am On Jan 15

Realtruth2023:

When PMS undergoes further catalytic cracking that is the end result

Hahahaha 🤣🤣🤣🤣🤣
Will you stop this public display of ignorance?

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by FireUpNow(m): 11:55am On Jan 15

All the hyping about Dangote Refinery and pms pump price crash go soon clear to everyone. De play oo

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by COMPAQ(m): 12:07pm On Jan 15

gadgetplanetng:
NUPRC was also working to cut the cost of oil production to about $20 a barrel, down from between $25 and $40, by providing incentives to oil producers.
https://www.reuters.com/world/africa/nigeria-aims-raise-oil-condensates-output-26-mln-bpd-by-2026-2024-01-01/#:~:text=Two%20of%20three%20consultancies%20tasked,providing%20incentives%20to%20oil%20producers.

How much is a barrel internationally?
We sell as between 2x and 3x production cost.
I don't post carelessly.

Neither do I! As clearly seen from the chart in the link below, Nigeria is amongst the highest!

Mind you, this is Unit Production cost otherwise called unit operating cost (UOC). Basically how much opex you spend per barrel.

There is also something called unit Development Cost (UDC), which is how much Capex you spend per barrel.

The two of them added together becomes unit Technical cost (UTC)!

UDC is relevant depending on which cycle your oil fields are. if you are a country where the capex was spent 30years ago, then UDC is less relevant.

But if you are a country experiencing significant decline from existing fields and you need to drill lots of wells to replenish and maintain production, no to even talk of increasing it, then UDC becomes very important - even if its not talked about a lot. And Nigeria falls in this category. We have offshore oil fields that 5 years ago were doing 180k barrels per day that have dropped to 100k barrels a day today.

https://peakoil.com/production/heres-how-much-it-costs-both-saudi-arabia-and-the-us-to-produce-oil#:~:text=According%20to%20data%20from%20energy%20industry%20consultant%20Rystad,as%20well%2C%20which%20is%20well%20below%20rival%20nations%3A

Re: Seven Major Marketers Get Approval To Sell Dangote Fuel by Enemyofpeace: 12:12pm On Jan 15

See as the story long like the story of Nigeria. Na only seun and his moderators go get time to read this long story abeg

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