₦airaland Forum

bigx:
If they use a cost plus model it should help.
Also eliminating the cost of shipping out crude ans shipping back petrol should make a difference.

wetin that bros talk is right, but what i dont understand is why petrol cant go down to 200 when we have refinery, i feel we are bot knowledgeable enough

this same markerter has said transporting petrol is just 70naira into the country. well i do believe what i dont know and someone say this is it

but typing grammer to defend ignorance i wont do that, i will kuku be humble and learn

i want to understand international price wella

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

NNPC is on production sharing agreement with the majors so, they will supply crude to the refineries at subsided rate, this will ultimately bring down the price of petrol and other petroleum derivatives.

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

Stop saying rubbish you know nothing about.

brain54:
Nothing works as expected in Nigeria…

Except corruption like!

Goodlady:
Using such suggestion is like feeding FG with poison. If they are so corrupt to eat such money, then the illiterate north that they deceive more ll know FG is indeed corrupt than sheytan. Such embezzlement can trigger revolution.
If someone give you excuses of lack of funds, give the person funds and see if it ll be used well before taking judgement!

Seems like you are a learner to the leadership system of this country. The fact is that
1. There cannot be revolution in this country because the elites are far wiser than the masses. They will use religion, region and tribe to divide and conquer you.
2. This ll not be the only funds that will be made public that has not been put to use. If snakes and gorillas can swallow money and nothing happened, if your account general can embezzle 80billion and nothing happened, if Akpabio can steal over 60 billion of Niger delta money and nothing happened, intact today the same man ur senate president while children in Niger delta are still swimming to go to school, do you think any of then will be held responsible if they mishandle this one?
3. All the money that is clear to us they've embezzled are our money, physically contributed or not. We know about , we know they stole our money, we know they will still steal our money, yet we still voted for them again.. so what revolution are you talking about?

Whenever Nigeria refineries go into production we will still supplement with imported fuel. Also spare parts will be bought with forex.lt won't take long before they become moribund because of Nigeria factor.

Also, remember that crude oil will be sold to the refineries at prevailing price in the international market.

So do not expect price of fuel to be less than 400 naira whenever any of them is functioning.

Even Dangote refinery will sell above 400 naira when ready.So do not expect the current inflation trend affecting goods and services to come down.God should help us to meet our needs.

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

Unless the Government wants to reduce or remove its own share of the market price per barrel sold to the refinery and that in effect is subsidising the crude. Every other parameters will remain the same. The IOC will not sell crude to you at a rate cheaper than the market price unless some cutthroat deals were offered and accepted.
We cannot afford to remove one subsidy and reinstating on another in the same value chain.

coputa:
NNPC is on production sharing agreement with the majors so, they will supply crude to the refineries at subsided rate, this will ultimately bring down the price of petrol and other petroleum derivatives.

Another subsidy

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

Why should government sell crude oil to the DOMESTIC market at INTERNATIONAL prices?

Every major economy adopts PROTECTIONIST policies that prioritise the welfare of its citizens, why not Nigeria? Why can't we sell only the quota of crude exported along with excess refined product over domestic demand at international prices?

This is what a serious government would do but because of 'vested interests' (or the cabal as you know it), we continue to inflate production costs and pass it on to the poor masses. Corruption is emasculating the economy and the government needs to be serious about weeding out these drains to the economy.

Nigerians need to stop making excuses for corruption in government. This is how the lie that subsidy must go because of smuggling to neighbouring countries was sold to Nigerians. My answer to that is that if aeroplanes can be fitted with tracking devices and tracked from departure to arrival destination, why can't same be done for lifted products from the depot? Why should we be comfortable that our borders are porous to smuggling as a country and no one is making a serious effort to address this?

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

You are 100% wrong

cjudy:
IPMAN said so here you’re saying otherwise. Seems na you get this country and later you will tag someone IPOB. You can ban me if you like but I will tell you the truth

That guy is senseless

How can a very rich country not have minimum of one standard modern hitech refinery to breakdown his crude to patrol diesel,petrochemicals,byeproducts etc.is all executive fraud by ex-rulers.You cant try that shit in japan or Korea and be living in that country
OBASANJO DID NOT DO IT FROM 1999
JONATHAN DID NOT DO IT
BUHARI TOO DIDNT BUILD A STANDARD ONE
NOW THEY PUSH ALL BLAME TO PTINUBU
IS ALL TOTAL HYPOCRISY OF NAIJA PEOPLE
YOU SUFFER THEM YESTERDAY,THEY FORGET
AND BLAME THE NEW PERSON TODAY.
That is why your socalled rulers dey use una head drink fufra,yeye things. Atikuu know what his selfishly lookin for With all the waste buha wey no get common waec did ,no naija youth talk about buha again.Naija youth really get fish brains.

We have no busy importing fuel in the first place.

Of course, it will sell less than 150 because the price won’t have to do with dollar rate, Drill and refine, the activities will also create employment , but the selfish senseless people in government won’t do it

Goodlady:
I once suggested we should contribute money to FG to fix the refineries. May be each Nigerian should donate at least N1000.
If at least 50 million people donate N1K each, how much?
Cos Nigeria matter is like a cursed child who's means of success has been blocked. No matter the struggle, the child dies in penury.
How can a country be like Nigeria blessed with crude oil be importing finished petroleum products at exorbitant rate which is above the masses reach and we can't produce the petrol here?

Nigerians that I know will freely donate more than that.
Unfortunately, some entitled folk will definitely loot the funds and bring us back to the drawing board.

The criminals in power won't be happy!

Authoreety:
Nigeria

Since we began producing and eating our rice, Nigeria became worse in alll ramifications..

Our leaders are terrible

not only our leaders we are all terrible

Why would FG share N5b each to every state when we have refineries to fix?
Xmas Bonanza to governors.

The only way this would be possible is if the government gives the crude oil to the refiners for free.

It’s time to burn the refineries down. Make person comot mind.

The TAM budgeted every year can be used for something else

Mrtaye:
But they have profered solution naw abi are you the saboteur ni

Lip service solution. We sabi them

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

I think you should have explained more better than making it seems is not possible. Yes, as a member of OPEC, Nigeria cannot sale below the international price, that's a well known fact but that doesn't mean the price of the pms won't crash if the crude is locally refined because the lifting and landing costs would have been taken care of. As at today nobody knows the lifting and landing costs, everything is done in secrecy and that is telling on the poor masses because the burden is transfered to them to bear now.
The question now is:
What is the lifting cost of the crude oil?
What is the cost if refining the crude outside per liter?
What is the landing cost of the refined pms?
What is the OPEC price per liter of pms?
What would be the production cost in Nigeria after the crude is refined?
All these factors must be taking to consideration before finally submission can be arrived at. If IPMAN can come out and say, PMS can be sold as low as 200 naira, who are you and mine to say it is a lie?
Again, the question is, what is the price of PMS in Iran, in Saudi Arabia and other countries that have crude oil like Nigeria?

femicyrus:
Focus on which governance?

Sharing of prayers into their mailboxes?

Which government owned asset that was sold to private investors is not milking Nigerians dry today with their extremely poor service delivery?

I agree with your points. That's because even he sales of such assets are fraudulent. Well the people of Nigeria are not ready to change their life when they are they should know what to do

Omooba77:
https://punchng.com/petrolll-sell-less-than-n200-per-litre-with-functional-refineries-ipman/

But when our refineries are functional, Nigerians will buy fuel less than N200 per litre.



I agree!

IfnobeGod20:
I think you should have explain more better than making it seems is not possible. Yes, as a member of OPEC, Nigeria cannot sale below the international price, that's a well known fact but that doesn't mean the price of the pms won't crash if the crude is locally refined because the lifting and landing costs would have been taken care of. As at today nobody knows the lifting and landing costs, everything is done in secrecy and that is telling on the poor masses because the burden is transfered to them to bear now.
The question now is:
What is the lifting cost of the crude oil?
What is the cost if refining the crude outside per liter?
What is the landing cost of the refined pms?
What is the OPEC price per liter of pms?
What would be the production cost in Nigeria after crude refine?
All these factors must be taking to consideration before finally submission can be arrived at. If IPMAN can come out and say, PMS can be sold as low as 200 naira, who are you and mine to say it is a lie?
Again, the question is, what is the price of PMS in Iran, in Saudi Arabia and other countries that have crude oil like Nigeria?

You can read this article to see the cost breakdown of PMS:
https://nairametrics.com/2023/08/01/pms-landing-and-distribution-cost-in-nigeria-explained/

As you can see, if freight costs get eliminated because of local production, the impact on the cost is minimal.

nairalanda1:
Yeah, unless there is a massive subsidy of some sorts, or the people selling crude decide to sell it at a lower price, or the price of crude crashes below 50 dollars a barrel, fuel prices can't reach N200 or less.

The only way I see the thing happening is if the government earns us more and more in dollar revenue, which means the value of the naira goes up again, MAYBE, fuel prices would be 'lower'

This isn't clear, if our refineries are working and we do not need to export crude only to import fuel, how would dollar revenue reduce fuel price?

That is not true.

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

How on earth did you get such impression. You don't buy fuel nd someone who imports fuel is telling you sth and you are bent on dishing out u informed reply. Perhaps you are defending g an amount paid.

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

Absolutely agree with you, I don't see how they intend to sell an internationally prices product at leas than 500 naira.

And if the price of crude oil does go up what do they plan to do. I don't know the current ethol ratio in Nigerian PMS but I reckon it is little, we can do what the Brazilians do with as much of a 70/30 Ethanol/PMS ratio most cars can take it and leverage on our agricultural potential to produce cassava based ethanol or corn. We have the agricultural landmass to do this.

cjudy:
IPMAN said so here you’re saying otherwise. Seems na you get this country and later you will tag someone IPOB. You can ban me if you like but I will tell you the truth

It is impossible to pay less than 200N for PMS unless government introduce subsidy. Take that statement to the bank anyday anytime.

The spare parts that would are used in the refinery would also be imported in dollars I do hope you realize.

I'm currently paying €1.60/ltr for PMS

Mynd44:
This isn't true except the FG will introduce subsidy on crude oil to the refineries.

If the crude is supplied at market price, the difference due to importation will not be more than ₦‎50-70 naira.

The only advantage is the pressure on the Naira due to FOREX

Ngelele people. How much is fuel in Libya, Agola, Saudi Arabia. Is not our crude on our land. Why must we suffer ourselves listening to world bank and IMF

sweetgala:
Absolutely agree with you, I don't see how they intend to sell an internationally prices product at leas than 500 naira.

And if the price of crude oil does go up what do they plan to do. I don't know the current ethol ratio in Nigerian PMS but I reckon it is little, we can do what the Brazilians do with as much of a 70/30 Ethanol/PMS ratio most cars can take it and leverage on our agricultural potential to produce cassava based ethanol or corn. We have the agricultural landmass to do this.

I beg no bring that one. Garri don reach 500 already