₦airaland Forum

ecolime:
Even with this, this same IPMAN will still look for ways to rip off the people so long they form part of the value chain. Those guys are economic saboteurs.

You are not telling lies

grandstar:
Can petrol be sold at N200 per litre without subsidy? Definitely, that is if the price of crude oil collapses to $10 per barrel.

Yes it can. Just get the crude oil, firewood, big pot, some catalysts, recipe book and boom N50 per litre is sure.

Majesty7:
You people just write and talk without thinking twice. The government shouldn't subsidized crude oil. It should be the same rate.

Are you telling me that the production cost in a poor country like Nigeria that has a minimum wage of #30,000 will be the same as the production cost in Netherlands that has a minimum hourly wage of €11?

The production cost for poor country is yo rich countries is way above 1:30

You people just talk for talking sake

Rich or poor country, you still need a substantial amount of money to explore and exploit the crude. The currency for crude oil market is the dollar. Everything you do is priced in dollar. Now you enter into a joint venture with some multinational companies, they explore and exploit the crude, then you will now sell below cost of production! Who does that if not a fool.
Those mentioning Libya, Saudi Arabia etc, please covert N200 to their currency and see what it gives. Rubbish

Nonsense talk!

And Ajuri is saying another thing....we shouldn't expect petrol to be cheaper again in this kwantry ..... confusion everywhere

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 dey mind nonsense IPMAN.

Majesty7:
You people just write and talk without thinking twice. The government shouldn't subsidized crude oil. It should be the same rate.

Are you telling me that the production cost in a poor country like Nigeria that has a minimum wage of #30,000 will be the same as the production cost in Netherlands that has a minimum hourly wage of €11?

The production cost for poor country is yo rich countries is way above 1:30

You people just talk for talking sake

You think people who work in an oil company or a working refinery here in Nigeria would earn N30k!? Even my driver and nanny earn far more than that.

rookidmart:
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.

I opened the link and all I could see is that the data majorly focuses on local charges and not international charges that hiked the resultant price of PMS. I think the data should be explicit enlightened by letting us know the price for lifting per liter of crude. Amount charge you refine the crude per liter and the amount to import it back to Nigeria per liter, before we can now add the production cost of the crude and storage of both crude and refined crude.
Don't let us deceive ourselves, everything from inception of those managing NNPC had been shrouded in secrecy. No iota of truth in their workings. They dish out lies upon lies and we absorb them hook line and sinker.
There's need to ask ourselves why some countries are selling below even the OPEC price and they are not borrowing to finance the extras to meet OPEC price.
Look at it this way. If the cost of production of a litre of oil is let us say #250 and the OPEC price is #400. Do you know that if the government sells at #350, the government can still meet the shortfall of #50 OPEC price and still gain for the running of the system #50. Don't let us deceive ourselves, there's no shortcuts to refining crude locally. Those benefiting heavily in the sharp practice of taking the crude outside to refine, will always have reasons to say the price difference is insignificant because they don't want to run out of business and they don't want the system to work.

Majesty7:
You people just write and talk without thinking twice. The government shouldn't subsidized crude oil. It should be the same rate.

Are you telling me that the production cost in a poor country like Nigeria that has a minimum wage of #30,000 will be the same as the production cost in Netherlands that has a minimum hourly wage of €11?

The production cost for poor country is yo rich countries is way above 1:30

You people just talk for talking sake

The problem is the people drilling for oil are competing in a global market.

At the end, why should they sell crude at international price, and then turn around and sell some of the same crude at a reduced price? They would lose money, and then they would start cutting things like workers salaries to save cost.

Also, the equipment and everything is paid for in...dollars. The international partners they do business with are paid for in...dollars.

As someone has said here, fuel can cost N200 if crude was sold at 10 dollars per barrel. Assuming crude was sold internationally at 80 dollars, a Nigerian guy who owns an oil well would be losing 70 dollars per barrel if he sells to the local market.

That can impact on the business...leading to closures, and workers doing japa (Oil workers too japa...I even have met some).

Life is not fair sometimes.

nairalanda1:
So supporting the right to set your price as a businessman= supporting government



Face reality man. And grow up.

Lol. You still keep telling yourself this lies.
Which businessman gets his product from the govt? Is that a businessman or govt pikin?

You said when subsidy is removed and marketers allowed to set prices then they'll start importing. Why are they now crying all over the news that they can't import and have reverted to NNPCL as the sole importer? I thought by now all the marketers will be importing and outdoing each other with pricing according to your theory.
What happened? Can you explain why it's not happening and NNPCL is still their feeding bottle?

Kukutente23:
Lol. You still keep telling yourself this lies.
Which businessman gets his product from the govt? Is that a businessman or govt pikin?

You said when subsidy is removed and marketers allowed to set prices then they'll start importing. Why are they now crying all over the news that they can't import and have reverted to NNPCL as the sole importer? I thought by now all the marketers will be importing and outdoing each other with pricing according to your theory.
What happened? Can you explain why it's not happening and NNPCL is still their feeding bottle?

Oga, like I said, I have no time for you at all. Consider yourself lucky to recieve this my response.

You want subsidy? GO AND AGITATE FOR IT. GO AND FIGHT FOR YOUR N150 fuel. Stop distrubing us realists.

Good afternoon.

aderilb:
Why is dangote refinery not working yet after commissioning

... Buhari just wanted to commission dangote refinery before his tenure ends and commission it in his name... dangote and Buhari just deceived nigerians that dangote refinery will start by July 2023

nairalanda1:
The problem is the people drilling for oil are competing in a global market.

At the end, why should they sell crude at international price, and then turn around and sell some of the same crude at a reduced price? They would lose money, and then they would start cutting things like workers salaries to save cost.

Also, the equipment and everything is paid for in...dollars. The international partners they do business with are paid for in...dollars.

As someone has said here, fuel can cost N200 if crude was sold at 10 dollars per barrel. Assuming crude was sold internationally at 80 dollars, a Nigerian guy who owns an oil well would be losing 70 dollars per barrel if he sells to the local market.

That can impact on the business...leading to closures, and workers doing japa (Oil workers too japa...I even have met some).

Life is not fair sometimes.

The problem is you say a lot of things you're not knowledgeable about with confidence.
Almost all those drilling for oil have a sharing agreement with NNPCL. A portion of what they drill belongs to NNPCL. Of that amount, a further portion of NNPCL's is kept for the refineries. I know you're not aware of this which is why you just made that statement above.

What you call global market is actually the opec regulated market. It is not as universal as you claim. There are bigger oil producers than Nigeria who are not on opec template

So Buhari and dangote just deceived nigerians that dangote refinery will start by July 2023...and this is September

sweetgala:
The IPMAN fellow is only playing to the gallery so the general populace who are overwhelmingly ignorant of the facts wouldn't think they are a component of their misery as concern the cost of PMS.

He knows the truth, these guys are also bent on forcing the government to reintroduce subsidy because they all feed fat off the multiple corruptions going on with subsidy.

Which subsidy are they reintroducing? Have you listened to what AA Rano said sometime ago, that he never received any amount at all as subsidy? What exactly is fuel subsidy and how does it operate? There has never been anything like fuel subsidy from the time of Buhari till date.

Goodlady:
They ll lie and say not everyone is paying tax. This contribution is for refinery alone. It's a way of serving FG food that ll choke dem if eaten

I laugh in Spanish. They know we are helpless. They will swallow the money and nothing will happen.

nairalanda1:


Oga, like I said, I have no time for you at all. Consider yourself lucky to recieve this my response.

You want subsidy? GO AND AGITATE FOR IT. GO AND FIGHT FOR YOUR N150 fuel. Stop distrubing us realists.

Good afternoon.

Lol. Realist indeed
More like alternate realist with failed theories
Quote me when your importers start importing fuel

Misterone:
Rich or poor country, you still need a substantial amount of money to explore and exploit the crude. The currency for crude oil market is the dollar. Everything you do is priced in dollar. Now you enter into a joint venture with some multinational companies, they explore and exploit the crude, then you will now sell below cost of production! Who does that if not a fool.
Those mentioning Libya, Saudi Arabia etc, please covert N200 to their currency and see what it gives. Rubbish

The problem with you people is "reasoning". You guys hardly reason.

What determines wages? Are you comparing your nanny to a professional oil rigger? Or what is wrong with you people? #30,000 is the minimum wage and payment depends on level. I don't even know where to start argument with you. You sound too low

nairalanda1:
The problem is the people drilling for oil are competing in a global market.

At the end, why should they sell crude at international price, and then turn around and sell some of the same crude at a reduced price? They would lose money, and then they would start cutting things like workers salaries to save cost.

Also, the equipment and everything is paid for in...dollars. The international partners they do business with are paid for in...dollars.

As someone has said here, fuel can cost N200 if crude was sold at 10 dollars per barrel. Assuming crude was sold internationally at 80 dollars, a Nigerian guy who owns an oil well would be losing 70 dollars per barrel if he sells to the local market.

That can impact on the business...leading to closures, and workers doing japa (Oil workers too japa...I even have met some).

Life is not fair sometimes.

Not really my brother.

We are not talking about exploration here. We are talking about refining.

Let me give you a realist scenery.

You own a refinery in USA and I own a refinery in Nigeria. We both acquired our crude oil at $100/barrel.

Your production (refining) cost will definitely be higher than mine due to huge worker's wages. Yes we both source our equipment at equivalent rate but this is production cost.

Your least worker wage might be well above $3,000/month and that can be my best wage for my highest worker.

Production cost is what determines a product price.

Busy... Will talk to you later

Majesty7:
Not really my brother.

We are not talking about exploration here. We are talking about refining.

Let me give you a realist scenery.

You own a refinery in USA and I own a refinery in Nigeria. We both acquired our crude oil at $100/barrel.

Your production (refining) cost will definitely be higher than mine due to huge worker's wages. Yes we both source our equipment at equivalent rate but this is production cost.

Your least worker wage might be well above $3,000/month and that can be my best wage for my highest worker.

Production cost is what determines a product price.

Busy... Will talk to you later

Well on refining, the same argument applies...plus they have to buy crude at the international price.

Refineries cost money to maintain and upgrade. Remember that the parts and stuff are paid for in dollars. We don't have a domestic industry that can manufacture refinery components, etc.

Plus, workers at the refinery have to be paid competitive rates, or they too jakpa. That is only possible by the refinery running at a profit.

Again, life is not fair.

Also, you know you are arguing that refineries cut costs by paying workers less.

MTNnews:
You are not wise instead did you to tell your father to quickly build his own refinery n take advantage of Dangote waste of time you are here lamenting like you n your fathers brain is dead.

hhhhmmm I can see you having problems with my comment, your fraudulent forefathers who give birth your eleriburuku father before you, don't learn their lesson, from be a fraudster, you can't be free from the truth you hate, idiot like you are every corner of Nigeria, kindly use your left side to hell 🦍

sweetgala:
Fuel is more expensive in Angola and SA compared to Nigeria in fact some 30-50% more.

Lybia is the only country where it is less and it is heavily subsidized & rationed

From Google search fuel in Angola is USD 0.364 which is equal to N273 naira.

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

He his 100% correct...Let me take a little time to enlighten you and other interested Naira lander.

1.Crude is the major source of money we spend for every other thing in Nigeria... It is sold at international price... So any subsidy on crude to the refineries means Nigeria is going to get less income and become poorer.

2. So if Refineries purchase crude at international price from Nigeria govt.. they only add their refinery margin to it...so the price of product Will almost remain the same. The only benefit is the cost of logistic like freight cost of bringing products from abroad which is now reduced as we now produce locally. This can not be more than 50- 100 naira in reduction of PMS price per litre.

3. If govt subsidises Crude or Products..that mean less money will be available to govt to do other developmental projects...there will be less foreign currency...hence scarcity of dollars...

4. Those comparing Nigeria with other producing nation's...ask yourself what's their population...Saudi Arabia is less than 40m.... their daily crude production is 12 million barrrel ...while Nigeria population is over 200m producing 1.5 million barrrel per day...so where is the comparison.

5. Google... Facebook... Amazon...etc each of them ( one man company)...made more money annually than Nigeria...a whole 200m+ nation. So you can see that Nigeria is a very poor country....So people should wake up from expecting government to perform miracles.

6. UK...USA.. Europe..makes more my money from TAXES from their Citizen through their creativities...SO ask yourself what have you contributed or created that this country is making money from as Taxes just like other countries citizens. LET STOP THIS VICTIM AND BEGGARS MENTALITY expecting everything from a country you have not contributed NOTING but complaining waiting for manner from heaven. Forget about bad leadership....LEADERS ARE REPLICA OF THEIR FOLLOWERS....A BAD FOLLOWERS CAN NEVER AND WILL NEVER PRODUCE A GOOD LEADERSHIP....So please keep your cry to how the improve yourself...and add value to the country GOD had created you to be....

sweetgala:
The CEO of NNPC and other knowledgeable individuals have put the lifting costs and other logistics costs at between 60-100/ ltr.

If government forgo some levies you can cut another 20/ltr

Now, what is the OPEC benchmark price per liter, which every member countries must sell the oil?
Just I had explained in the morning. If the benchmark price is #400 per liter and the cost of production of the oil locally is cumulatively #250 per liter and the government sales #350 per liter. The government still has a gain of #100 per liter in which #50 can be use to upset the benchmark and the remaining #50 for the benefit of the nation.
Don't let anyone deceive you, there's no better alternative than the crude being refined locally. More advantageous, cheaper and labour minimal and also add to employment radar of the country. Those deceiving us are just making the country a laughing stock amongst other countries of the world. The countries selling below OPEC benchmark price, are doing so because they argument from their sales to meet benchmark, which serves as subsidt to her people.

IfnobeGod20:
Now, what is the OPEC benchmark price per liter, which every member countries must sell the oil?
Just I had explained in the morning. If the benchmark price is #400 per liter and the cost of production of the oil locally is cumulatively #250 per liter and the government sales #350 per liter. The government still has a gain of #100 per liter in which #50 can be use to upset the benchmark and the remaining #50 for the benefit of the nation.
Don't let anyone deceive you, there's no better alternative than the crude being refined locally. More advantageous, cheaper and labour minimal and also add to employment radar of the country. Those deceiving us are just making the country a laughing stock amongst other countries of the world. The countries selling below OPEC benchmark price, are doing so because they argument from their sales to meet benchmark, which serves as subsidt to her people.

OPEC does not benchmark price...That invalidate all your statement. It shows you no noting about this discourse...leave it for the experts so you can learn...🤗

Majesty7:
The problem with you people is "reasoning". You guys hardly reason.

What determines wages? Are you comparing your nanny to a professional oil rigger? Or what is wrong with you people? #30,000 is the minimum wage and payment depends on level. I don't even know where to start argument with you. You sound too low

You're the one that lack reasoning and have a very low faculty.
What has minimum wage got to do with price of PMS? A commodity that's priced internationally! Maybe you think exploration of crude oil is like drilling a borehole. Senseless things. I don't even know how you guys reason! Whether it's with your asses or brain. A country that we all agree has a revenue problem , you expect government to sell PMS to you below market price just because you are from where again? Rubbish

nairalanda1:
Well on refining, the same argument applies...plus they have to buy crude at the international price.

Refineries cost money to maintain and upgrade. Remember that the parts and stuff are paid for in dollars. We don't have a domestic industry that can manufacture refinery components, etc.

Plus, workers at the refinery have to be paid competitive rates, or they too jakpa. That is only possible by the refinery running at a profit.

Again, life is not fair.

Also, you know you are arguing that refineries cut costs by paying workers less.

So simple. Just a simple logic. Production are way cheaper in poorer countries.

So simple. No need of long arguement. Forget parts or the rest. It's the same thing. What's is the basis of production? Land and labour takes the highest chunk.

Are you telling these 2 factors are expensive in poorer countries than rich countries? Just a bit busy today would have explained to you better

Misterone:
You're the one that lack reasoning and have a very low faculty.
What has minimum wage got to do with price of PMS? A commodity that's priced internationally! Maybe you think exploration of crude oil is like drilling a borehole. Senseless things. I don't even know how you guys reason! Whether it's with your asses or brain. A country that we all agree has a revenue problem , you expect government to sell PMS to you below market price just because you are from where again? Rubbish

Thank you. I hope that settles it?

Majesty7:
So simple. Just a simple logic. Production are way cheaper in poorer countries.

So simple. No need of long arguement. Forget parts or the rest. It's the same thing. What's is the basis of production? Land and labour takes the highest chunk.

Are you telling these 2 factors are expensive in poorer countries than rich countries? Just a bit busy today would have explained to you better

So you are arguing for poorer salaries for oil workers because cheap fuel?

Oga, that's cruel.