₦airaland Forum

We'll know by year end.

I don't believe theories in Nigeria anymore. We somehow don't fit into normal.

You just need to check how much $$ we spend to import refined oil and how much $$ we earn from exported crude.

Crimecity:
So in essence, Dangote and FG are the winners. Citizens have nothing there to gain or celebrate.

One would have thought that those saves from TFare and landing costs + import duties will reduce the cost of PMS at least.

Sighs

while you were thoughting, NNPC and dangote were scheming. I was surprised when you "citizens" were celebrating Dangote refining fuel without first asking for the price.

do you think it was coincidence for NNPC to have fixed the price of fuel at N897 a few hours before Dangote decided to announce he was ready to supply fuel?

Crimecity:
So in essence, Dangote and FG are the winners. Citizens have nothing there to gain or celebrate.

One would have thought that those saves from TFare and landing costs + import duties will reduce the cost of PMS at least.

Sighs

I wonder oo.
And trust business men, Dangote can not because he gains other bye products from the crude distillation and reduce the pms price for his country. He has now hinged the price determination to FEC abi NEC, All the joy and euphoria about this Refinery are now vain, fake and comes to nothing.
Anyway let's watch and see

Standing5:
We already know Mr Analyst.

The crude sold in Naira means less crude in normal exchange for forex or dollar and thus lower forex inflow. But once Dangote starts refining beyond local consumption capacity, which may reduce very drastically if smuggling stops, it means the refined crude will earn more forex than it usually would have in govt hand as raw crude oil because value has been added and it sells for higher. It is still a win on the long run as long govt doesnt make petrol artificially lower than in neighbouring countries.
Heard the FEC is the one dictating final prices and that points to an arrangement where FG bills dangote for crude lower than intl rates just to allow it come out as refined crude product lower than market rates while preserving Dangote flat profit margin. Dangote is now acting a lot like public refineries should under FG on a level playing field.

which smuggling are you talking about?

who and who is doing the smuggling?

can you mention them?

how do they smuggle and what is their smuggling route?

how come these smugglers are never arrested?

We are in for a long thing but definitely naira will gain more.

I pity who won't sell out his/her dollar at this present rate.
In couple of weeks now, dollar will drop to around 1k.

Who wan bet?

All these grammar is just to justify continuous price hike. Why not pump crude through the pipe to the refinery instead of shipping it for such a short distance within the same country. That is what is done in advance country.

Thank you, it's getting clearer by the day.

chudez0147:
Dey play . As if Dangote is not a business man.

I tell people until Dangote sale for at least #400 there is nothing there to celebrate about his refinery.

You also talked about the byproducts left in malt as if they don’t pay fg for them.

So you mean FG and NNPC was buying it for N400 before blending in Malta?
Sefia pains.

In another functional country it should
But ths is Nigeria

armadeo:
We'll know by year end.

I don't believe theories in Nigeria anymore. We somehow don't fit into normal.

we don't ooo. Our case is diabolical...

Im just praying something out of the ordinary will not spring up to come dabaru things...

Naija na special kolomental case.

This man should shut his mouth before fuel subsidy addicts and arm chair economists come for his head.

The summary of what the man is saying is that forget N500 per litre price for petrol.

People who believe that once the oil is refined locally, the price will be so cheap that there won't be need for a subsidy.

Imagine this nonsense

oluayebenz:
We are in for a long thing but definitely naira will gain more.

I pity who won't sell out his/her dollar at this present rate.
In couple of weeks now, dollar will drop to around 1k.

Who wan bet?

It's only a fool the will heed to your advice.

Dollar is not dropping anything stop talking trash oga.

Hold your dollar tight everybody

Dangote is not a charity organisation and oil is a commodity traded in hard currency + Dangote owes an obligation to his shareholders........ 🤣😂

Not forgetting, he also got debt obligations to honour in $$$$......

Lol kalu aja the debt is a revenue clown is now an expert on nairaland?

I clicked on the thread thinking I will actually read from an petroleum industry expert, not some internet clown.

It's like any clown is now an expert these days, thanks to Internet.

Expert isonu.

tutudesz:
No more landing cost again this is what marketers are shouting always.

because that is what NNPC told them to shout. it was the voice Jacob but the hand of Esau.

while you guys were running after marketers and accusing them of sabotage, NNPC was busy using landing cost as an excuse to inflate subsidy cost and steal.

that is why NNPC initially refused to give dangote crude because Dangote will sell without the bogus landing cost and NNPCs scam will be exposed.

so NNPC made a deal with dangote. we will give you crude but we will be the only ones to buy your fuel.

with that arrangement, NNPC can now maintain the price of imported fuel for locally produced fuel so as to cover up its ass.

that is why a few hours before dangote announced he was ready to supply fuel, NNPC fixed the price of fuel at N897 in order for them to maintain the margin which they were stealing as a result of the phantom landing cost

Lexusgs430:
Dangote is not a charity organisation and oil is a commodity traded in hard currency + Dangote owes an obligation to his shareholders........ 🤣😂

it has nothing to do with being a charity organisation or not. is it dangote that fixed price for his fuel or NNPC?

why is NNPC making itself the sole buyer of dangotes fuel?

why did NNPC decide to fix price of fuel just a few hours before dangote announced he is ready to supply refined fuel?

diamond68:
I done went and changed all my dollars to naira. dollar go soon drop. i change all my dollars. 20 dollars

Føolish decision

Standing5:
We already know Mr Analyst.

The crude sold in Naira means less crude in normal exchange for forex or dollar and thus lower forex inflow. But once Dangote starts refining beyond local consumption capacity, which may reduce very drastically if smuggling stops, it means the refined crude will earn more forex than it usually would have in govt hand as raw crude oil because value has been added and it sells for higher. It is still a win on the long run as long govt doesnt make petrol artificially lower than in neighbouring countries.
Heard the FEC is the one dictating final prices and that points to an arrangement where FG bills dangote for crude lower than intl rates just to allow it come out as refined crude product lower than market rates while preserving Dangote flat profit margin. Dangote is now acting a lot like public refineries should under FG on a level playing field.

You are correct. BUA cement guy refineries is coming up. Nigeria should be a center for refineries and supply finished product to Africa as export earnings in $. If Dangote successfully takes off, our 4 refineries would be sold to individual and they will compete also. Government has no business refining crude. Too much corruption in govt business.

lol lies

lexy2014:
it has nothing to do with being a charity organisation or not. is it dangote that fixed price for his fuel or NNPC?

why is NNPC making itself the sole buyer of dangotes fuel?

why did NNPC decide to fix price of fuel just a few hours before dangote announced he is ready to supply refined fuel?

It's a perfect script...... NNPC is broke, they need to raise money to pay historical debts (by fire or force)...... 🔥😂

Standing5:
So you mean FG and NNPC was buying it for N400 before blending in Malta?
Sefia pains.

That is why we don’t want him. If he can’t sale for #400 he should Dey him Dey and don’t disturb us with refinery this and that.

Thinktwicemybro:
Føolish decision

why ?

Lexusgs430:
Dangote is not a charity organisation and oil is a commodity traded in hard currency + Dangote owes an obligation to his shareholders........ 🤣😂

Not forgetting, he also got debt obligations to honour in $$$$......

But Dangote says he cannot buy in dollars, that is where the game changes. Do you know how much they sell fuel in Kuwait and Saudi Arabia? It is well below the standard price.

When I was trying to educate the illiterates here yesterday about the wrong 44% reduction in dollar demand , they mobbed at me like bees. This is an expert's submission...very lucid

Didijiji:
Is Dangote cement cheap

Is Dangote sugar cheap

Is Dangote spaghetti cheap

Mumu Nigerians

sharap! ,still cheaper compared to foreign ones

lexy2014:
because that is what NNPC told them to shout. it was the voice Jacob but the hand of Esau.

while you guys were running after marketers and accusing them of sabotage, NNPC was busy using landing cost as an excuse to inflate subsidy cost and steal.

that is why NNPC initially refused to give dangote crude because Dangote will sell without the bogus landing cost and NNPCs scam will be exposed.

so NNPC made a deal with dangote. we will give you crude but we will be the only ones to buy your fuel.

with that arrangement, NNPC can now maintain the price of imported fuel for locally produced fuel so as to cover up its ass.

that is why a few hours before dangote announced he was ready to supply fuel, NNPC fixed the price of fuel at N897 in order for them to maintain the margin which they were stealing as a result of the phantom landing cost

You’re not well educated . Dangote that will soon be listed on stock exchanges? You funny o

You don’t understand Oil and Gas

Mayflowa:
But Dangote says he cannot buy in dollars, that is where the game changes. Do you know how much they sell fuel in Kuwait and Saudi Arabia? It is well below the standard price.

If Ghana wanted to buy from Dangote, would they buy in naira...... So you see, Dangote got the knife and the yam, so he is slicing it whichever makes business sense........ 🙄🤣

Standing5:
We already know Mr Analyst.

The crude sold in Naira means less crude in normal exchange for forex or dollar and thus lower forex inflow. But once Dangote starts refining beyond local consumption capacity, which may reduce very drastically if smuggling stops, it means the refined crude will earn more forex than it usually would have in govt hand as raw crude oil because value has been added and it sells for higher. It is still a win on the long run as long govt doesnt make petrol artificially lower than in neighbouring countries.
Heard the FEC is the one dictating final prices and that points to an arrangement where FG bills dangote for crude lower than intl rates just to allow it come out as refined crude product lower than market rates while preserving Dangote flat profit margin. Dangote is now acting a lot like public refineries should under FG on a level playing field.

Unfortunately, every refinery has its production capacity and contrary to your first paragraph, Nigeria's local consumption is estimated at 66m liters daily while dangote's daily pms refining capacity is 25m liters. There's still a huge shortfall. We can't stop importing except those local refineries truly commence refining sooner than later.

So in essence, you know nothing

SolomonGrandi:
You’re not well educated . Dangote that will soon be listed on stock exchanges? You funny o

You don’t understand Oil and Gas

Not only NSE, he would open oil trading houses in UK, France and USA....... 🇺🇸🇬🇧🇫🇷🇫🇷😂🤣

Crimecity:
So in essence, Dangote and FG are the winners. Citizens have nothing there to gain or celebrate.

One would have thought that those saves from TFare and landing costs + import duties will reduce the cost of PMS at least.

Sighs

Don't mind this analyst. Let's leave out the crude part and deal with PMS.
1 let's assume that the cost of refining is the same whether by dangote or abroad.

2 The PMS will be shipped to Nigeria = shipping cost.

3 There will be insurance costs associated with the pms.

4 There will be port charges

5 There will be storage costs because the pms will be kept in depot and gradually being sold.

The imported PMS will bear costs 1 to 5 before margin.

The dangote PMS will bear only cost 1 before margin.
Therefore cost savings will be costs 2 to 5.