Alright.

leokid866:
lol the six million liters of crude was gotten in Nigeria....the 2 million litres coming from the US is to refine and return to the company he got it from, the same way Nigeria used to refine its crude outside the country....even if Nigerians are to purchase from that it will not be as expensive as having to import diesel cause what is imported is crude which can be refined to many other products.....products manufactured here.....

At the bolded, I guess you meant 6 and 2 millions barrels respectively. A barrel basically contains 156 litres of crude oil which in essence can generate up to 170 littres of assorted oil products after refined. So a barrel ain't equal to a litre as your,submission opined.
Of course the 2millions barrels the refinery got from USA had been refined and shipped back to HOUSTON according to information on the oil cargos tracker platform. It wasn't meant for NIGERIAN market to start with as the deal was between a USA oil firm and the refinery. You know, the refinery is designed to be able to refine all grades of crude oil to the best specification and qualities；especially the EURO V specification. We don't seem to know the magnitude of what we have here.
Yet, what we understand they want to sell of is the 6 millions barrels gotten from the Agbami fields. Going by renowned information, an average refinery can produce around 25% of AGO from a barrel. That means, for every 170 or thereabout litres of oil products refined from a barrel, 42.5 litres is supposed to be AGO （called DIESEL in layman's term）. So if we have 42.5 litres multiply by the 6 millions units, then we are expecting them to have a storage of approximately 255,000,000 litres ready to be dispatched. That should get us going for around a month in the country （if exportation doesn't come into play）.

Kelklein:
for more clarity

One million litres is like 20 - 30 Fuel Tankers per marketer (each Tanker is around 30,000 - 50,000 litres capacity depending on the size)..

Fair enough..

Exactly!
Nigerians won’t even understand anything they will just be talking and talking. For a marketer that is very fair.

Oghene86:


Most marketers can't afford that. What that mean is that the same major marketers involved in importation will be the ones to buy.

Is there anything wrong in major marketers buying and selling to sub major ones

shoodboi2:
Most marketers buy 33000 liters at once. One million liters would be over one billion naira.

Who is this guy looking to sell to? Cos I don't think he's selling to Nigerian marketers. Unless maybe major marketers.

But those ones will only turn around to sell to independent marketers who buy 33000 liters at once.

Middle man things 😂

A marketer does not buy only 33000. Those ones are just hungry truck loaders.

Havent you seen A.A Rano or Bovas?

princefunm:


A marketer does not buy only 33000. Those ones are just hungry truck loaders.

Havent you seen A.A Rano or Bovas?

Those ones are major marketers. They usually have tank farms along with lots of filling stations. I was talking about independent marketers that only have few filling stations with no tank farm.

shoodboi2:


Those ones are major marketers. They usually have tank farms along with lots of filling stations. I was talking about independent marketers that only have few filling stations with no tank farm.

They will go an buy from the tank farm owners.

Retailer no dey follow manufacturer chop for the same table. Na wholesaler dem dey follow rap

shoodboi2:
Most marketers buy 33000 liters at once. One million liters would be over one billion naira.

Who is this guy looking to sell to? Cos I don't think he's selling to Nigerian marketers. Unless maybe major marketers.

But those ones will only turn around to sell to independent marketers who buy 33000 liters at once.

Middle man things 😂

most of those so-called independent marketers are under franchise. It won't be difficult for them to get their quota

Emekayoung:

Diesel has always been expensive all this while. Fuel is the major issue not even diesel.

Diesel is a bigger issue than fuel

All those companies, factories etc power using diesel, even transportation of your products with trucks are diesel

Nonybb:
Dangote is one of the stubborn demon holding this country. I wonder why God bless such a wicked man. People don't know this man personally. I remember when Obasanjo favoured this evil genius and he got rich through monopolization; built his cement factory at Kogi. Yet after years of doing so, with FG refusing to allow others import cement, this Fulani evil has refused to crash the price of cement. Then came the Dangote refinery. Who told you people that this Fulani animal would make the product affordable and quench the price increase?

they don't know

shoodboi2:
Most marketers buy 33000 liters at once. One million liters would be over one billion naira.

Who is this guy looking to sell to? Cos I don't think he's selling to Nigerian marketers. Unless maybe major marketers.

But those ones will only turn around to sell to independent marketers who buy 33000 liters at once.

Middle man things 😂

33k liter tanks are old-fashioned and almost phased out . Most marketers use 45k-55k liter trucks to maximize profit and minize cost. 33k liter trucks would take like 1.2k liters of diesel to move from Lagos to north.. and 45k-55k liter trucks would take the same amount of diesel. PEF pays more for bigger tank trailers. Anybody using 30k L for long hauls .. is burning money in this fantabulous economy 😂💰

Nonybb:
Dangote is one of the stubborn demon holding this country. I wonder why God bless such a wicked man. People don't know this man personally. I remember when Obasanjo favoured this evil genius and he got rich through monopolization; built his cement factory at Kogi. Yet after years of doing so, with FG refusing to allow others import cement, this Fulani evil has refused to crash the price of cement. Then came the Dangote refinery. Who told you people that this Fulani animal would make the product affordable and quench the price increase?

HMMMMMMM

SHUT UP PLEASE

WHO TOLD YOU OBASANJO MADE DANGOTE?

DANGOTE WORKED HARD FOR THE MONOPOLY HE IS ENJOYING.
HE HAS DONE IT WITH OTHER COMMODITIES

WHY IS IT THAT THERE ARE ONLY TWO SUGAR REFINERIES IN NIGERIA OWNED BY THE KANO FOLKS DANGOTE AND BUA

USE YOUR HEAD AND TAKE MEGA RISK.

WHO ASKED YOU AND YOUR FAMILY NOT TO SET UP A REFINERY ??

soccerlite:



Is there anything wrong in major marketers buying and selling to sub major ones

Does my comments implied there's a problem, or you're looking for someone to insult.

zomoears:


Strong words sha.

1,000,000l means 30-31 trucks per order.

Its not a playground for small players.

Maybe Nigerian Breweries should start selling to Beer parlours too in order to provide level playing ground for small players

shoodboi2:
Most marketers buy 33000 liters at once. One million liters would be over one billion naira.

Who is this guy looking to sell to? Cos I don't think he's selling to Nigerian marketers. Unless maybe major marketers.

But those ones will only turn around to sell to independent marketers who buy 33000 liters at once.

Middle man things 😂

You don't have knowledge of independent marketers. Most of those independent marketers has more than 100 trucks of different capacity: 33000, 45000 and 6000 litres. 1m litters is even small to some independent marketers

ppogba:


Maybe Nigerian Breweries should start selling to Beer parlours too in order to provide level playing ground for small players

You don’t get it, do you?

PHAYOL81:
Alright.




At the bolded, I guess you meant 6 and 2 millions barrels respectively. A barrel basically contains 156 litres of crude oil which in essence can generate up to 170 littres of assorted oil products after refined. So a barrel ain't equal to a litre as your,submission opined.
Of course the 2millions barrels the refinery got from USA had been refined and shipped back to HOUSTON according to information on the oil cargos tracker platform. It wasn't meant for NIGERIAN market to start with as the deal was between a USA oil firm and the refinery. You know, the refinery is designed to be able to refine all grades of crude oil to the best specification and qualities；especially the EURO V specification. We don't seem to know the magnitude of what we have here.
Yet, what we understand they want to sell of is the 6 millions barrels gotten from the Agbami fields. Going by renowned information, an average refinery can produce around 25% of AGO from a barrel. That means, for every 170 or thereabout litres of oil products refined from a barrel, 42.5 litres is supposed to be AGO （called DIESEL in layman's term）. So if we have 42.5 litres multiply by the 6 millions units, then we are expecting them to have a storage of approximately 255,000,000 litres ready to be dispatched. That should get us going for around a month in the country （if exportation doesn't come into play）.

export is not going to be an issue....local market needs must be met first....even Dangote will not try his luck cause when Buhari was giving him dollar at 190 his mouth was sweet then, plus NNPC owns 20% na from him board room dem go first slap am.....

leokid866:
export is not going to be an issue....local market needs must be met first....even Dangote will not try his luck cause when Buhari was giving him dollar at 190 his mouth was sweet then, plus NNPC owns 20% .na from him board room dem go first slap am......

LOL!

Nonybb:
Dangote is one of the stubborn demon holding this country. I wonder why God bless such a wicked man. People don't know this man personally. I remember when Obasanjo favoured this evil genius and he got rich through monopolization; built his cement factory at Kogi. Yet after years of doing so, with FG refusing to allow others import cement, this Fulani evil has refused to crash the price of cement. Then came the Dangote refinery. Who told you people that this Fulani animal would make the product affordable and quench the price increase?

You that you are not evil, help Nigerinas to crash the prices of Rice, eggs, milk, meat, tyres and roofing sheets. Nigerians will really appreciate you sir.

Lukuluku69:


Not good.

Unless you are a Major Player, this means he won't sell to you.

More middlemen means more Cost will be added.

1m litres minimum is close to a billion Naira. How many Filling Stations have that?

You don't know anything about marketing of petroleum products.

Many marketers can afford it (I am not talking of Ajadi & Sons Petroleum or Okorie Brosters Int'l Petroleum).

As for smaller companies, 3-5 Petroleum marketers can merge to form a bigger player in the sector.

shoodboi2:


That's one angle. But I can't really think of any company that will want that much diesel at once. That's like 31 trucks or so.

I was thinking banks and factories but it'll be too much for them unless they pay at once and carry it in bits. Only a business or organization with large storage capacity will carry this much diesel at once.

That again goes back to the major marketers.

So many marketers can buy it. Even IPMAN can buy it and share among their members.

The average cost of diesel today is #1200/ltr. This is about #1.2 billion per marketer. I guess only the major marketers and a fraction of independent marketers may buy this product. However there needs to be competitors from our local refineries and modular refineries else we will end up weeping due to monopoly of the sector. This happened in the cement sector. Despite the monopoly, there was scarcity of cement and the middle man factor which lead to increment.