₦airaland Forum

sulaak:
Why is it that any time Nigeria faces a challenging problem, the first option is to import to solve the problem?


There are modular refineries, BUA Refinery and three government-owned refineries.

That is becos most of these problem are human made/ artificial, the essence is to justify importation
its only logical they propose importation for the problem they created cos thats the essence

Antoeni:
This is Cool, Allowing only Dangote to supply petroleum products will amount to monopoly which is even more dangerous. Opening the market for others to import will bring about the needed competition and price war that will benefit the masses.

Why are you people so gullible, we were not born yesterday, same Nnpc that granted license but never allowed any marketer import fuel even when there was low supply in the country suddenly will let marketers import fuel when supply on ground is okay


If Nnpc despite sales is struggling to meet up forex to finance importation what chances do marketers have to get enough forex

Even if marketers bring in fuel, can it be cheaper than dangote fuel without govt subsidy and will a sensible govt abandon local refining to subsidize imported fuel by marketers food for thoughts

who is fooling who,

Anither563:
They should have engaged the lawmakers first before making this statement. The lawmakers are acting in the interest of the public and deserve our support.

It not about what are define to do, from a realistic point of view are lawmakers serving the public or just working for there own interest

if you insist they are acting in the interest of the people how about you tell one punishment the reps have shielded or mitigated from landing directly on Nigerians.

How can the reps protect our interest effectively when we are worlds apart, most can't even relate with the reality of people they claim to represent

deji17:
This is laughable. Nigerians need to quit thinking and analysing issue like yours. Subsidy is not sustainable. You can't use the hard currency you earned to subsidize dollars at a lower rate. You can't keep subsidizing everything including energy , education etc. You want to live in a welfare state where everything is subsidized for you. Obviously, you are not ready to face reality.

what could be more laughable than the cluelessness we've witness from a 1st class under 1yr.

infact the joke is on you, subaidy is not sustainable rite, can you explain why a fuel @ landing cost of 1200 according to Nnpc sells for 850 at the pump ..

You can't ?? what was yemi cardoso pumping into forex then, maybe intervention as they like to call it is different from subsidy


Uk, Us, Germany are subsidizing education, housing, health, food how as that jeopardise there growth. if its works for developed nations why must subsidy be branded as evil of the day by Tinubu apologist

Since Tinubu removed subsidy, in what area as it paid off, i doubt you recognise reality

That simply buttresses the Fact that, there is no fun in Enjoying alone !

i for say eniola is pushing are luck, but she has nothing to lose, Tinubu dey pay pass movies

deji17:
Cost of production determine prices. Many years ago, fuel price was peanuts compared to now, but how many Nigerians can afford to own a car talk of a fuel then?

And who are those responsible for economic stance that influence cost of production

under 1year, we are dealing with 400% hyper inflation whose fault, or whose policies

when cbn was spiked interest rate up, govt withdrew from subsidizing electricity, govt intensified taxation, to crown it all subsidy is gone ... what did they expect will happen to cost of production

Mind you these is not a matter of many years ago .. if Tinubu had maintained the exchange rate @least what he met ... fuel can't cross #500 per litre

Nigerians can not afford cars becos APC happened, even car dealers are going thru hell to sustain their business ... do you have an idea of import duties on car or how much it takes to now clear a container
in cotonuo that Nigerians use, do you know Cepha as beaten Naira

People affordability were eroded by these useless Govt ill thought policies that amount to no good asides propaganda statistic

prime cost decides "pricing" But governance influences whether it will be bearable or not.

coleon:
See this one that does not know his left from his right calling an investment banker olodo, anyways social media is a leveller.
We will be here by this time next year then you will swallow all the nonsense you just quoted there. In the meantime, keep fooling yourself while you are trying to graduate from your school.

just because you sleep on sportybet no mean investment booker , you pass thru school rite and see your comment ...

Oga dispute any of my points logically lemme see you try.

publicenemy:
when did this over-inflated tube become an economic specialist?
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tribalism is the biggest problem with this country. during the #ENDSARS protest against the Buhari government all yoruba artists both local and international rose up and protested against the Buhari administration, they all also rose up against the GEJ administration and protested. now we have the worst government in the Tinubu administration in less than 2 years in office, people are facing the hardest economic hardship in their entire lives yet the Yoruba artists have become dumb and mute and many of the like drum have become the mouthpiece of the Tinubu administration... SHAME.

mechonu ! beko and trash these nonsense talk of tribalism ... in the last one year of Tinubu no region or tribe as played activism against Tinubu govt more than the afonjas

Incase you live in cave, Sowore, adeyanju, momodu, San falana, Gani adams, muric , bode george have all being on the news speaking out for Nigerians, no other tribe as ever set such tajectory, did North ever tell buhari ebi paa wa or what did SS say against jonathan

Asides North that collaborated with SW in the endbadgovernance protest, how supportive as other tribe being to get the govt to sit up and do better

trutharena:
The hardship is temporary, and we will surely get there.

Did you started counting from 2015 or need i remind you since then we've being sacrificing and nothing to show

Nnpc as being deregulated for how long now .... yet market forces are yet to come off bench

Only a lier will insinuate after 8yrs of buhari and one hell of a year under Tinubu .... the hardship is temporary

DevilsEqual:


If you cant see it, then you are blind

The signs are everywhere. This is one of the few times that it pays to be a farmer and thats just Agriculture

Do we need to remind them about how INNOSON keyed into FG electric car initiative or we should even include Dangote refinery


This is the second best time to be a Nigerian, peep into the future and smile widely

when you start seeing what people cant see its a sign o tin ya weyre small small

They keep coming up with lies,propaganda and stats that has no effect or contradict reality, you can develop a nation on propaganda

if there is a trade surplus, why as it not reflected a strength in Naira, dollar went up from 1500 to 1600 since nothing as changed

How can anyone declare a Trade surplus we are battling hyper inflation, we are in these mess today cos our production is low in almost all sectors, Agricultural produce low and even oil sector we dont meet opec quota for long now .. and one politician pimps dare talk about trade surplus

Up in the north bandits are killings farmers and rain is eroding farmers land and one ediot says these is the best time to be a farmers ... when Nigerians are cutting down on consumption and farm produce are selling as they should people's purchasing power as being eroded
The account balance of most working class citizen cant maruma and someone is reminding us of innoson electric car, apparently these people are so disconnected from Nigerians reality
You might be devilsequal but your stupidity at this time has no mate, gbà bé

Och77:
Dangote too is a fraud, I thought he claimed earlier the IPMAN doesn't want to lift if pms because it's cheap. Is what we have now cheap? I said it then that how come he doesn't want to disclose the cheap price he claimed.

Their is no way Dangote fuel can be cheap with a $1 = 1600, most of us are not even putting that into consideration

should dollar drop, thats what can bring effective relief to Nigerians at these time

deji17:
Okay. There is no fuss about any of this. Dangote refinery and Nigeria matter be like pikin wey dey learn to walk for the first time. This has never happened to us before in Nigeria where we will have a big private local refinery that will meet our energy needs. Everything will be normalised / regularised with time. No where in the world where fuel price is stable. It'sa commodity which price is determined by global market forces.
The way forward is alternative to PMS. Alternatives like CNG, Rail transit, cheaper public transit, electricity etc.
People should quit this analogue thinking of cheap fuel.
Wailing is good for Wailers though.


https://www.youtube.com/watch?v=c-gQwNKUTlY?si=k0z5Io6tzpJ3qv_s

They decieve yourselves, at the time Nigerians household were madly in love with kerosene they told us gas is the future and cheaper
Today how much is gas that was once flared away as waste , majority of households are now on cooking gas, is it cheap 1kg/1400

Enjoy your CNG now when its cheaper Nigeria will soon happen to it

CodeTemplarr:
By making the above statement and similar statement, the corrupt NNPC is making it sound as if the reason fuel sell for what it is sold for is Dangote. That's divisiveness. If Dangote prices it too high, buy from Malta or Singapore and let Dangote export his.

You are getting it all twisted, Dangote knew his price will generate backlash should he announce it himself, hence the sheningans with Nnpc, Nnpc is already in the black book of Nigerians let them continue to take the heat

Most of us have forgotten $1/ 1600 the multiplier effect is why dangote fuel cant be cheap its not the man fault, running the calculation with $1/ 500 and you will realize exchange rate is the main obstruct to low price fuel

Malta or other imported fuel is not cheaper to dangote, naa grace of subsidy and should govt pass on same subsidy arrangement to dangote fuel it will be lot more cheaper compared to imported

MEEVEET:
Oga there is a standard all you have to do is google.. U think the figures I gave are from me?

You don't manufacturer figure from air

I gave you a chance to point out the unrealistic assumptions , i gave you figures


what did you do it either you point out the figures i manufactured or we end this conversation

MEEVEET:
So you get 159 litres of products from 159 litres of crude?

100% efficient system? Lmaooo that's quantum mechanically impossible in science and engineering

The average loss in crude refining process is about 5% ... And only about 85% of the product refined have market value





Then add a 6% to 15% cost refining
Then add 10% to 20% profit

Then do the maths again

In manufacturing, waste is inevitable so let say from 159ltr input, output might drop to 150 litres, but there is no provision for waste in manfacturing acount therefore selling prices is computed base on "inputs" solely that doesnt input 100% efficiency

Selling price is calculated base on inputs not your output .. Learn

coleon:
Whenever I read ignorant folks like you post how Dangote refinery will boost Nigeria's FX earnings and bla bla bla, I always laugh and shake my head in pity.
I see first hand how much millions of dollars Dangote has been making from exporting diesel,gas oil and naphta since June, how much has those export earnings helped the Naira?
You know why it has not helped the Naira in any way, it's because Dangote is a private company and all his export earnings don't stay in Nigeria, he's either settling loans offshore or placing it in an escrow account with JP Morgan. Put yourself in Dangote's shoe, will you put your hard earned FX in an unstable economy like Nigeria?
If your argument is that buying pms will save Nigeria FX spending then yes it would but it will also result into Nigeria losing FX earnings, because for every barrel of crude oil NNPC sells to Dangote in naira the alternative forgone is FX loss if the crude had been exported hence I feel the net effect is close to zero.
You guys should stop been unnecessarily optimistic cos this is Nigeria's reality now.

Bro you are not close to intelligence as you think, Now the assumption that Forex low demand and a re-alignment in balance of trade will boost earning is as Factual as 1 × 1 = 1, the fact that Nigeria/govt undermines the effect with lies & corruption does not change what is "right"
Dangote export of diesel & aviation fuel is not adequate enough to trigger a turn around, besides dangote is having challenges selling this product

Balance in trade is key here, what is the volume of diesel & aviation fuel exported compared to volume of refined PMS we import .. see the gap naw

Over 60% of our forex goes into importation of PMS .. imagine that stops are you saying the ripple effect wont strengthen the economy/naira

That dangote is private does not undermine GDP .. try understudy what is GDP ?? olodo
i take it that you have no basic knowledge of economics at all,. Jare

MEEVEET:
Show the maths... Your maths calculations made so many unrealistic assumptions which I pointed out

1 barrrel = 159 litres
1 barrel sold $72
$1 = #1600

1 barrel × 1600 ÷ 159 ltr

which of these is an unrealistic assumption

TruthsFM:
you now see the reality here. Unlike your clueless statistics you always post here that dangote refinery will ease the inflation decrease in Tinubu economy. Now with the current price of nnpcl, the inflation will bite harder than more than before.

Local refinery is suppose to ease the inflation, nothing wrong with our assertions, the problem is the dubious characters we have to deal with.

However, whatever inflation the dangote might reflect is temporary and on a short term under a normal clime,
the Naira deal hopefully should crash high demand for dollar, a drop in demand should strengthen the Naira ,
Also the export of Dangote pms is a huge plus to our GDP and surplus to our forex earnings, the ripple effect strengthens the naira

Overtime , Maybe Nigerians we feel that relief we need and longed for, thats if they let it be

nairalanda1:
NNPC is still not ready to remove subsidy, essentially.

The fact is, the government too wants to remain in power....and a subsidy removal means they get kicked out.

Subsidy still exists, folks.

So where is the subsidy in all of these 950 per liter, except FG plans to intervene later and play the hero

ufotunang:
....so if NNPC sells a barrel.of crude oil to Dangote at $20 per barrel...will NNPC have any problem with OPEC ?..is it compulsory for NNPC to sell it at 72 dollars per barrel..at least if NNPC and federal government wants the price of the fuel be cheap and reduce the hardship inflation hunger nigerians are facing can't they sell it to Dangote at 20 dollars per barrel..just asking

As long as Nnpc is selling out to private entities (local or foreign) int'l market price becomes the default, its a global oil market rule it attract sanctions

But let assume Refineries owned by Nigeria are working, Nnpc can sell crude to the refineries at any amount .. be it $20 or whatever .. int'l market price cant interfere

what Govt can do at this time is subsidize sales of Dangote output quota to Nigeria, and most importantly our biggest relief will be dollar drop

MEEVEET:
🤦‍♂

Yeah efficiency of 100%
All crude converted to valuable petrol diesel and aviation fuel

Let me ask you this If dangote can produce petrol at 50 cents while would he sale to Nigeria? When he can sale for 1 dollars across the world?

No one is asking dangote to do charity here, and the the local market does not negate "profitability"

With Dangote capacity, he can afford to meet Nigeria's demand and still export to anywhere

From all indications of pricing, Nnpc/ Dangote are using int'l market price to compute "price" .. so there is no sane rationale why dangote will pick export over local sales at this time, na same turnover

MEEVEET:
I don't know why this government lie so much... This is becoming a sickness

There is no way under the sun dangote can sale petrol at ₦898... It's absolutely impossible

Crude oil cost 72 dollars per barrels it cost 5 dollars to refine averagly that's 77 dollars

There are 159 litres in a barrels

5% of crude is lost during refining average that's so we have 151 litres

refinery expect 40-45% gasoline, 25-30% diesel, 5-10% aviation fuel, and about 15-25% "other"

So let's use 45 petrol, 30 diesel and 10% aviation fuel ( kerosene +diesel blend)

The remaining 15% is basically worthless

For simplicity sake let's assume petrol diesel and kerosene are same price

85% of 151 = 129 litres of products
Crude cost + refining cost = 77*1650 = 127,050

That gives us a cost price of ₦985

Let's say dangote sets a profit margins of 15%

That gives us a final price of
₦ 1,132

I have been very very conservative here... Cost of refining, and yield but this is the minimum dangote can sale his petrol

OGa i disagree, taking these to further maths is unnecessary cos by basic calculation

1barrel/$72
1barrel = 159litres

1 barrel in # = 72 × 1600= 115200
for a litre = 115200÷159 = 724.5

Nnpc sells crude to dangote at int'L price of 724.5 it could even be less via subsidy or incentives

if the average cost of refining 1 barrel = $ 5
5 × 1600 = 9000
for a litre = 9000 ÷ 159 = # 56
Technically, Dangote refined product per litre should be around 725 + 56 = # 781


In manufacturing account waste has no entry and as such can not be segregated from prime cost, i stand to be corrected

lithiumnigeria:
When we tried to explain this thing 5 years ago, we were called enemies of progress.
Refining PMS worldwide is a very very low margin business. Refineries normally take like 4-5 Months Forward PMS Off-take Contract so that they can also do forward purchase of crude. It’s a liquidity business.
Somehow, Nigerians were erroneously convinced that it will be cheaper.

As it is, it is obvious that NNPCL is even doing Dangote a favour by being the sole offtaker.
Dangote needs liquidity. Only NNPCL can give him.

Oga forget all these big grammar , local refining across the world ensure cheap price compared to imported

There is no amount of big grammar can convince local product and import will be same price .. its illogical

Bamss1:
I think not mentioning how much
Dangote sold to NNPC is more professional. This is just a call for NNPC spoke person to retract whatever fake information he has released to the public and be more factual.

Are you saying professionalism negates transparency and accountability

one of the main attribute of price is "popularity" ... it must be a public knownledge where hidden something is not right

DeOTR:
Press release to debunk the price quoted by NNPCL but the actual price not stated. Dangote, are you OK?

i taya ! the price is just 3 figures at most but he ended up typing over 500 words to defend a price he didnt mention smh

ufotunang:
..so if the dollars falls will it reduce the price of crude oil in the international market..in which NNPC is using to sell to Dangote

Let say the dollar drop $1= # 600

1 barrel = 159 litres
1 barrel = $72
$72 × 600= 43200 ÷ 159 = 271

so imagine dangote is buying 1 barrel of crude at #43200 he cant sell is refined pms beyond 300 and @ worst Nigerians we buy at filing stations within 350- 390 under a normal environment, fear Nig. govt

richmond500:
a litre of crude is quivalent to N724, Dangote can't sell below 766 after all expenses and salaries are taken off

its apparent they are using int'l market price, then we might as well start praying Naira strengthens, that would reflect reduction in pms price

$1/ 1600 is a huge hindrance to a reasonable price

ufotunang:
...if they were other private modular refineries also producing fuel it will create competition and reduce the price of fuel..so it's competition that can reduce the price of fuel...but with only Dangote refinery producing it creating monopoly it might not go down

As long as Nnpc sells crude to dangote at the intl market price, no amount of competition can lessen the refined price like we all widely believe
what Nigerians should be praying for is dollar to fall, any drop will reflect a reduction in price

$1/ 1600 is outrageous

Yankee101:
I live abroad and I know the price of refined products with taxes

NNPC is just giving you figures you need to believe the subsidy payments they’re making. The subsidy paid in the last one year eclipsed what some entire administrations have paid in 4 years

This time around the crude was pumped to Dangote and refined locally. In refining you add cost of labour, transport ships and trucking to last mile. Labour abroad is a minimum of 2.6m naira per month in these refineries. Dangote is paying some less than 100k per month. Crude was sold in Naira. No shippping costs. Etc etc

You’re beginning to buy the lie. Do you wonder why there was scarcity and inflated prices before Dangote came onstream?

It’s called orchestration

if you know, then share , its high time Nigerians get to know

@least if we know the refine cost + taxes from abroad, it will be easy to estimate the freight

Usmanovic95:
We have the crude and the refinery but the cost is still this high? What if we don't have crude😌😌

according to Nnpc, cost is whatever they call it

richmond500:
it is economically impossible for Dangote to sell below N766 per litre

Interesting, can you back that up with stats/calc ...

except you know what only Nnpc know

helinues:
Why is this man always full of radarada talk

Why not contest for ordinary councilor to start making the changes yourself. Always complaining

Eish

i believe we all want a change, does it mean we all have to join politics or vye for post before Nigeria can be better


With the rate Tinubu is taking out all forms of subsidy i what exactly is left that Nigerians are benefiting directly frm govt

The 70,000 mininum wage is yet to be recieved and already Tinubu as collected double in return, se oni ironu nii
sometimes i wonder how much Tinubu govt dey pay you .... always supporting anything the govt does

if you are not driving a prado or range rover under this govt shame on you