₦airaland Forum

lexy2014:
I am not buttressing ur point because u have maintained all along that d reason that d price of cooking gas is increasing in Nigeria is because much of it is exported because of profit. These are ur words:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Contrary to what u have been trying to say, nigeria doesn't export cooking gas. It imports d product. That negates what u have been saying all along. So u aren't really saying one thing. U are just changing ur story as u go along. If u knew d industry as u claimed, then u shouldn't have made a wrong claim that nigeria exports cooking gas.

Much of u said above is contradictory. U are just contradicting urself.

That is where we differed, I was talking about gas crude in it's raw form.
You are talking about in it's refined form, we produce refined cooking gas in the country importation is not our only source, like I said enough is not being processed because of two factors , storage and a preference to sell the raw product outside.

lexy2014:
Where u expecting to quote d entire article? If price of crude oil determines price, then u shouldn't be having price discrepancies. Are u saying cross river state has greater demand for cooking gas than Oyo state or Kano state?

Price of crude determines price, if crude price is high, the cost price for a supplier will certainly be high, how he wants to sell it is left for him as there is no price window.

What stops crossriver from having a greater demand than Oyo and Kano, we have a lot of variables, shop rent, orientation , to , purchasing power et Al.

lexy2014:
I get u and once again, u are making a comment that doesn't correlate with this comment:

This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum.

NB: take note of d first sentence immediately after d link

You are butressing my point, producing companies are selling more to foreigners because for them it is more profitable

Nigerian dealers are forced to buy from outside, pay shipping cost and other charges increasing the local price.

lexy2014:
U are saying 3 different things at once for just one thing which is d sharp difference in prices 4d same period.

States with the highest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Cross River (N4,598.50), Akwa Ibom (N4,562.50), and Anambra (N4,503.14).

States with the lowest average price for the refilling of a 12.5kg cylinder for LPG (Cooking Gas) were Kano (N3,560.00), Oyo (N3,638.46), and Zamfara (N3,700.00).

Like I said you only quoted a part of that article.
Law of supply and demand will determine price, because there is no price window.
Price of raw material will determine price

So places that have more demand and more purchasing power will have a higher average price because there is no price window.

lexy2014:
Am not sure where u read my comment where I said that gas doesn't come from drilling. When u locate that comment, pls let me no. Pls read my comment again. It doesn't relate with ur response above:

This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum

You still don't get me
Whether LNG or LPG it comes from one source, and if the NGC is not getting supply because a company wants to sell all it's crude quota, price of LPG will be high.
I know the industry and I know their are companies that pump everything out, water, gas crude and debris.
Price is then determined by purity.

Also don't forget that we are short of forex and the country does not mind selling everything to raise money.

Agboriotejoye:
From crude oil

So if a company bdecides to sell all thier quota To a foreign company what happens.

lexy2014:
This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum

Wrong all gas come from an offshoot of drilling, it passes to a facility where gas water debris and pure crude is seperated.
What the production company decides to do with it is left for them, how they want to maximize their profit is left for them, some companies sell directly without passing through any process , some purify because they have the facility.
What is more profitable is what they do or they declare force majuire

Agboriotejoye:
Lol. Refined cooking gas? Where did you get that from?
Where is the refinery located if I may ask?

Oga no vex where does cooking gas come from

lexy2014:
D fact that people bought less gas due to low purchasing power doesn't explain d discrepancies in price in different state within d same period. Even if there's no fixed price, it also doesn't explain d sharp difference in price in d north and south since u say d price of crude determines local price.

I said a lot of things,
Supply and demand determines price
If crude or let me put it this way fossil fuel is high price of gas will be high.
Availability determines price
So which do you have issues with.

Agboriotejoye:
I have been following your argument on cooking gas and it's faulty. The supply of cooking gas is not carried out by IOCs but rather by NLNG. So your theory of demand and supply does not cut it especially if you know the laws by which NLNG operates.
I suggest you find out instead of just applying general knowledge to defend what you don't understand

Who said the IOC supplies cooking gas, the supply the raw material which cooking gas is refined from, if they NLNG does not receive any supply what happens.

lexy2014:
It's funny that nigeria imports even gas. Obviously, buhari d minister in charge hasn't contributed anything to d sector. Meanwhile, find below data from NBS:

average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Cross River (N4,598.50), Akwa Ibom (N4,562.50), and Anambra (N4,503.14).

States with the lowest average price for the refilling of a 12.5kg cylinder for LPG (Cooking Gas) were Kano (N3,560.00), Oyo (N3,638.46), and Zamfara (N3,700.00).

Note d discrepancies. This doesn't reflect price of crude

Your report is a little mischievous and misleading.
That report says that average was achieved because Nigerians bought less gas due to a lower level of purchasing power, meaning some people might have sold at a loss, bear in mind that sale of gas is deregulated meaning there is no fixed price, you buy at what you can afford and sell at what you can afford to sell at, so if the price of raw material is high expect high selling price even if it is not uniform.

lexy2014:
From what I discovered, nigeria also imports cooking gas. Quite shocking:

https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/

Because we don't have enough storage farms as I told you , so we pump directly to vessels or flare the gas.

Bennycollins:
Before this unpopular clique took over power, they were shouting it to high heaven that we didn't have business buying fuel at #87 because oil had fallen to about $90 per bbl. We were all deceived thinking that with the oil averaging $45 in their own tenure, we could have a #45/50 per litre regime. But see the turn of things. OK you claim anti- corruption is saving and fetching so much money, why are the refineries not functional? For your information, a barrel of crude when refined can yield over a $100. After all we heard recently from the president himself how much petrol is sold in the neighborhood countries, a great opportunity if we had leaders that think.
A beg, not everyone can be deceived.

Firstly am not talking from a political standpoint but from a professional one.
What most of you don't understand is that Nigeria selling crude and Nigeria buying fuel are two different things.
Even if our refineries are working least it will do is reduce shipping cost which is negligible, without subsidy it won't impact much on the price of petrol, because crude is a raw material drilled by private companies who want to make a profit, they will only sell it at a slightly lower price if at all to Nigerian refiners, then input cost of refining tax , storage et Al and tell me if you think the price will be lower than it is for now .

@ vybzkartel

Don't mind all this nairaland amateur jurist, they didn't even confirm if your wife is busty and expanding the shirt, wearing it carelessly, or any other issue.
You too didn't provide enough details, as for me I love my wife Wearing my shirt as I am bigger than her .

lexy2014:
It's not about me being pleased. It's about stating d facts which u haven't been able to so far.

U are just repeating ur refrain that "there is more profit to be made selling outside Nigeria". I really don't see how that sheds light on d question of price increase on local cooking gas

Local cooking gas is an offset of drilling, it is a refined process from crude drilling activities, if the raw materials which provides it is high its cost for the finished product will be high, we don't have enough storage facilities for it here so most times it is compressed and pumped directly to the shipping vessels and sold meaning we have limited materials for local consumption.

lexy2014:
U didn't get my question. Am not asking how it works. U have talking about how d price of crude is affecting d price of petrol and not how drilling crude is affecting d price of petrol. If d price of d petrol we consume is affected by d price of crude and subsidy, where do all these factor that makes d price of cooking gas to keep on increasing?

Because crude petrol and local cooking gas are one and the same thing gotten from the same process

lexy2014:
All u have said here are "ifs". If this, if that... which means u aren't sure why there's a continuous increase in d price of cooking gas locally. Has there been scarcity of cooking gas locally?

ok change the ifs to as, so that you can be pleased.
The reality still remains there is more profit to be made selling outside Nigeria for now

lexy2014:
That still doesn't explain why price of cooking gas is on d increase in nigeria. How does d preference of IOCs to sell cooking gas to d outside world affect local price of d commodity?

Because cooking gas is a part of drilling activities and is internationally priced, if there is more profit to sell it here it would be sold here, if there is more profit to sell it abroad and cause scarcity here it will be sold abroad and you will be forced to buy it at that price, Business like I said is for profit not charity.

phantom24:
ok so if i may ask what are the indices used in determining economic growth what was the standard & cost of living? You're an intelligent fool, keep fooling yourself.

The standard of living was a mirage then, we had a huge pay check which comes once in a while and lavished it, instead of utilising it properly.

lexy2014:
U have talking about how d price of crude is affecting d price of petrol and not how drilling crude is affecting d price of petrol. If d price of d petrol we consume is affected by d price of crude and subsidy, where do all these factor that makes d price of cooking gas to keep on increasing?

First consumption of gas is increasing locally and internationally while production is reducing, this will cause scarcity and lead to increase in price.

Let me tell you how it works

When crude is drilled it can come out as either a higher percentage of pure crude, pure gas, condescent or a mixture of more equal proportion sometimes with water being higher.

All oilwellls/ gaswells are connected to a flow station where seperation( not refining) properly occurs.
Storage of gas due to its nature has always been a problem especially locally so with more international demand, more of the gas is sold outside leaving a shortage here.

lexy2014:
That still doesn't explain why local price of gas is increasing. If demand is high due to demand outside of nigeria, then I don't see how that should affect local pricing

Simple logic, the IOC will prefer to sell to the outside world than to sell in Nigeria, because they will make more profit.

phantom24:
B you must be a foreigner to ask me how good the country was when d price of crude was over 100dollars if i may ask, how good has this country been ever since d price dropt? For ur info, its bad govt. Policies, insecurities, corruption, excess borowing etc that facilitates our economic woes & not increase in crude oil price.

Mr Man the country was not good anything, we were only reckless with forex resulting to cheaper foreign goods.
When the forex dried up late 2014 we went back to status quo

lexy2014:
How does high demand affect local price?

Law of supply and demand.
Multinationals are in the business of making profit not charity, if outsiders will pay more, they will sell to them

lexy2014:
Sounds logical. How we de do this cooking gas matter. D price de increase everyday. Is it because of high oil price, subsidy etc?

Cooking gas is a byproduct of drilling just like crude.
Though our major challenge is the storage facilities for it.
Also there is a high demand for our gas so it affects local price.

Omihanifa:
Lies from the pit of hell

Nigeria senators and reps are probably the highest paid in the world. And they contribute nothing to the development of the nation

If truly they are the poorest paid, they won't be killing themselves, selling their properties, borrowing loans from banks and resigning from private sectors to go and contest for public office


People that earn close to 20 million naira each per month (asides bribes and runs) are complaining that they are poorly paid


As for the silly spokesman saying senators and reps members are dying because they don't have money to treat their selves. It's a pure lie

Somebody that was flown to Germany no get money Abi ?

Are you aware that 20 million naira is less than 55000 dollars a month.


Just saying

phantom24:
beautiful nonsense, so when crude was over 100 dollars per barrel why didn't it affect our economy negatively? I can recall that the govt. Has been complaining about fall in price of crude. So why are they still complaining in a rise?

How good was the country when crude was over 100 dollars a barrel,
Low oil prices means low income for the country
High oil prices mean high expenditure, expenditure which can be avoided if people and not government pay the true price for the cost of fuel. If you need fuel buy it at it's real market value whatever is the cost not with government intervention.

elgramz:
That's a big lie, Provide a link to that audio or upload it here let's hear who is talking. Kanu's voice is unmistakable. I followed all his broadcast last year and I can swear with my life that he never made any such broadcast. Look, I'm not even asking you people to believe us anymore, since it's war with Igbos you people are desperate for, you can bring it on, We are ready for anything you people are planning.

Guy stop deceiving yourself and ranting up and down, I listened to the audio on that day

Spectrum22:
Ok, without subsidy. Then at least price of petrol should be stable not increase.

What I want to understand is why is government anticipating increase. Don't they stand to earn more as the price of crude oil climb?

Crude is a raw material for petrol, if the price of raw material rises the price of the finished good will also rise.

Nnpc sells crude oil Nigeria as a country imports petrol these are two different things because nnpc does not sell the crude oil directly it only invest in JV with multinationals and marginal fields to drill the crude when they sell they get their profit back so what they are directly telling you now is that yes we are making profit from crude but don't expect us to use that profits to pay for your fuel we don't want to be directly involved in how you buy fuel which is a good thing because I might use two litres of fuel a day but he rich man will certainly use 15l who therefore is gaining more from the subsidy

Spectrum22:
Shouldn't increase in per barrel at the international market translate to a reduction in per litter in our fueling stations?

Without subsidy how

Dear Trump we are sorry for refusing to be a shithole country abeg come back

Bia is it Alexareportts that compile this rubbish

Lovelive:
Mumu zone b

Mumu mumu