₦airaland Forum

PLS how might the dangote refinery plant affect those oil importers.Will they have to do something else?

newdetailsoper:
Hello

hi.

Haakeem:
hi.

am cool.

newdetailsoper:
am cool.

kk.

Through the demand and supply factor and price fixing.u see dangote will be able to meet a higher level of demand by the populace and will also play a key role in price fixing of the refined products as a big supplier in the market. In a lay man view | dangote(manufacturer/supplier)===>importers(distributors/suppliers) ===>wholesalers/retailers (Big distributors, filling stations).

It's going to have negative effects
1.time lag: why they are waiting for the products to arrive dangote is selling
2.price: the exchange rate would affect the price, dangote doesn't need to change # to $ because he will receive $ from foreign costumers who are buying refined products like gas,pms and aviation fuel.its a win win for dangote

Nnpc is the sole importer of petroleum products, others lift from nnpc depots.









Somehow nnpc can not maintain their own refinery thanks to nigerian factor

inspectorg:
Through the demand and supply factor and price fixing.u see dangote will be able to meet a higher level of demand by the populace and will also play a key role in price fixing of the refined products as a big supplier in the market. In a lay man view | dangote(manufacturer/supplier)===>importers(distributors/suppliers) ===>wholesalers/retailers (Big distributors, filling stations).

thanks for the insight. Nice one.

hakeemhakeem:
It's going to have negative effects
1.time lag: why they are waiting for the products to arrive dangote is selling
2.price: the exchange rate would affect the price, dangote doesn't need to change # to $ because he will receive $ from foreign costumers who are buying refined products like gas,pms and aviation fuel.its a win win for dangote

.


Nice analysis.So i guess the importers might stop importing.