₦airaland Forum

Mccollins042:
Monopoly is when only one person controls the market, now marketers have ensured Dangote has competitors

Where is the one person controlling the market and where is the competition?

Omooba77:
https://punchng.com/members-incurring-losses-ipman-laments-dangote-nnpcl-fuel-price-war/

Shorting the product you want to buy with a future contract doesn't exist in IPMAN dictionary

JoshTim:
Check the recent FX liability settlement by MTN

MTN as a foreign multinational has a tradition of repatriating profits back to South Africa

ivandragon:
So, how has your analysis invalidated my position that PMS should be sold for not more than N400 given the present socio-economic realities?

I have the conditions of how petrol can be sold for N400 per litre using N700/$ as the forex but not with today's forex of N1,550/$ where the average cost of refining is expected around N750 to N800.
The forex rate of N700/$ will only be achieved if the CBN reduces the money supply by reducing the minimum wage because that is the number factor behind inflation in Nigeria.

ivandragon:
When minimum wage was N30,000, PMS was about N190... so if it rises to N400, which is more than twice the previous cost, why should the minimum wage go back to N30,000?

On forex, that is agreed. It should not be above N700. Mind you, that is also almost double what it was when minimum wage was N30,000.00

The N190 per litre was a result of subsidy, so let's calculate without subsidy.
One barrel of crude is 159 litres (45% petrol) i.e 159*0.45=71.55 litres.
This means that a barrel of crude gives 71.55 litres of petrol when refined.
Now, Nigerian Bonny Light Crude is around $73.28 as of March 11, 2025.
Let's calculate using the crude to petrol of 71.55/barrel
Solution
Price of crude per barrel multiplying the percentage of petrol is
$73.28*0.45=$32.976
Then, dividing the petrol volume derived by the number of litres
$32.976/71.55 litres =$0.4609/litre as the average cost of production.
Converting dollars to naira using N700/$
$0.4609/litre * N700/$=N322.63/litre.
This means that the average cost of refining petrol is N322.63 per litre.
Note: Oil refineries usually buy crude with future and forward contracts, so the production cost might be lower.
The same applies to forex.

JoshTim:
Lol, we knew it will worsen.

You should ask why the CBN intervened at such a time?...

The reason is that, CBN helped MTN and other strategic companies in Nigeria to strengthen the naira creating a temporary surplus through dollar injection into the FX market.

So, through this, MTN is able to pay off some of it's FX denominated liabilities at a reduced price.

Evidence

magoo10:
Tinubu and Wike will rather blow up Nigeria than see the economy progress.

China was on holiday reason the naira was gaining against dollar earlier on .
the useless and wicked APC govt claimed they were pumping money to stabilize the naira and even the foreign reserve depleted but alas the thieves were using the funds to bribe judges , agbado miscreants,online content creators like omockery and the rest just to blow up Nigeria.

$1.1 billion AfDB loan and some exportation by Dangote refinery was the reason behind the appreciation

nnewsnjobs:
It should continue going down until it gets to #500 per liter.

Dangote should do the needful and reduce it further.

Oil marketers/importers should keep their import license with them and be ready to import fuel in case Dangote want to do otherwise and start increasing price.

Anything to favour Nigerian masses is what we want.

With loans borrowed from AfDB, Afreximbank, World Bank to import expensive substandard petrol from Europe and Europeans buys cheaper high quality petrol from Dangote.

ivandragon:
For the current socio-economic realities, PMS should not be more than N400 per litre.

That will only happen if the minimum wage is reduced back to N30,000 and with forex going back to N700/$

BrightFuture48:
Exactly but for greediness and selfishness he decided to be selling fuel above what is normal.

We all rejoice when is refinery is coming on stream thinking that it will lessen the price because that would have eliminate the overhead land cost but he choose to be selling his fuel above 1k initially. This is part what prompted FG to resume import fuel to break the monopoly and God bless them for it.

Like you said, selling for 650 or less would have discouraged fuel importing totally but his greediness and capitalist intent wouldn't allow him, just want to milk people dry. I pray more refinery or modular refinery come on stream to challenge his Monopoly, that will be absolute better for we masses. Imagine having only MTN as only license telecom carrier, you will agree with me, many wouldn't have be able to afford even Sim card or phone by now. I pray FG get it right in downstream sector also.

When you wake up from your dreams, importers are receiving secret subsidy and petrol is decreasing due to price of crude the international market

oyekanwahab:
this is how it suppose to be , in any sane country, competition among the players, with us the consumer benefiting from it

global oil prices is on a decline

lionshare:
Let the competition continue—Dangote should eliminate all these importers by dropping the price to N650. That way, the importers will have no choice but to buy from him until it becomes cheaper to import.

marketers are secretly subsidized

papyjaypaul:
Trump will only stop when the Americans start feeling the impact of his tariffs. I understand what he's trying to do to make sure Americans only patronize made in American goods and services but you cannot isolate yourself from the world. Trade does not work that way. Trade works with partnership agreements.

There is a reason why it is cheaper to produce laptops, cars and other gadgets in China or Asia. Even clothes are made in Thailand, Indonesia and India because it is cheaper there. Can Americans afford their own products? E get why Apple moved production to China. We shall see.

The American dollar is stronger the currencies of those countries hence cheaper products. Trump imposing tariffs on foreign products will Americans more and disrupt the system that was designed years ago, that the Fed print dollars while American citizens push it out by importing from other countries whose uses the dollar as a reserve asset backing up their local currency.

Heavensake1:
Who is Fg paying to? Dangote?? Oga,na old subsidy wey Buhari owe be that.https://punchng.com/fg-nnpcl-work-out-n7-7tn-fuel-subsidy-debt-payment/

You saw the truth but prefers to defend bad government, continue!

Obaaderemi2:
Debt accrued over several years, old debts being cleared by the new administration

Maybe Tinubu will his entire tenure clearing petrol import debts while the cheapest in Malta is £1.3 i.e N2,200 what the landing cost of N800 with N1,400 for the next president to pay as subsidy debt.
Continue to defend nonsense!

ufotunang:
..the competition between oil marketers and Dangote

Where is the competition?

Obaaderemi2:
You don't understand what you posted. From your report: the subsidy debt was #10tr.
That was old debt. Then there was a breakdown of how that accrued on a periodical basis due to exchange rate differential. Remember how the exchange rate behaved like a yoyo from June 2023 to late 2024. Please stop misinforming people here

N10.499 is the total subsidy debt,
N7.74 trillion is the remaining debts
N2.756 trillion is the subsidy paid

DemonSlayer:
The most annoying thing is how we Africans, innocent bystanders, would be affected by this foolish royal rumble.

When two elephants fights, it is the grasses that feel the effects

AKWATGOLD1:
Price war in action between EU and America while United Kingdom want to be neutral.

UK is a two edge sword just like India is playing with BRICS and NATO

NeroGaming:
can peanut butter be produced in Nigeria? If yes, what countries can we export to?

The peanuts butter that is all over the shelves of the super market is made in Nigeria

Sugarboyy:
What's wrong with this poor idiot?
We are all having our individual discussion just for the betterment of the country at large, what brought in my children into it?
You idiots behaves as if someone else is the cause of you guys miserable and poverty stinky lives.
Imagine the fool still talking about subsidy when even the highest known critiques of the government has finally admitted that subsidy payment has finally stopped... I won't be surprised if you were among those that was against the removal of this same subsidy by the government.
Your children will not end well in life, they will be worse and poorer than you in this life. They will beg just to feed and will forever be under the care of their peers in all ramifications of life. Ozuo

Wake up!

mauchiz:
They should keep fighting until it gets to five hundred naira

Who is fighting?

Mccollins042:
Sometimes I don't know what goes on in people's heads. Free market is good for the ppl, if na only Dangote I'm sure pms would be 1200

How will petrol be N1,200 if Dangote is the only producer

Mccollins042:
heard of free market? Abi na monopoly u want?

Where is the monopoly?

Mccollins042:
You talk like someone that doesn't know a thing about economics, how will this effort to curb monopoly cause Nigerias economy to cripple?
You want only Dangote to produce the fuel Cwe all use and peg the price at 1200?

Can you explain how Dangote will sell petrol at N1,200 if he is the only producer

Obaaderemi2:
Subsidy debts from when to when? Please back up your claims

From Tinubu's inaugural speech to February 2025

Heavensake1:
Oga,no more sunsidy. No one needs to tell you that that after seeing competition between Dangote and NNPC.

Subsidy stands at N10.499 trillion, wake up!

kay29000:
Yes o. Let the competition continue. It needs to come down to 500.

keep dreaming

deeptechcool:
If there's no importation, Dangote will not reduce its price. Competition is good for Nigerians.
If importation is allowed for Cement, a bag would be sold below 4000.

keep dreaming until you become a slave to World Bank and IMF because of borrowing loans to import expensive substandard petrol and subsidy it secretly.

nairalanda1:
As expected.

Competition. And it will get worse once BuA, and other refineries come on line.

keep dreaming

Obaaderemi2:
The Best thing that happened to Nigeria's economy in recent years is the removal of fuel subsidies

Subsidy is N10.499 trillion

Heavensake1:
Stop being emotional and reason like a real Nigerian.
The reason between then and now was that subsidy has been removed,govt no longer fix price to pay subsidy.

Subsidy is at N10.499 trillion