₦airaland Forum

Eriokanmi:
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 25k 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

Racoon:
It is just unthinkable idiocy for people to have a mindet that a sole monopoly like Dangote will better the lot of the comman man as far as Petroleum products affordability is concerned.

chidiokay:
Tell that to those Nigerians that will get job from dangote refinery..

DeGods007:
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

spiSeyi:
The crude is sold to him in Naira and he will sell to other countries in USD. Why shouldn't he sell back to Nigerians in Naira, if Dangote will sell to us using USD benchmark then the FG should sell to him in USD if he can't sell it to Nigerians using the Naira benchmark

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

Mayflowa:
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.

Crimecity:
Kalu Aja

SolomonGrandi:
Please show us how landing cost is generated ? lol

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

Lexusgs430:
What is the present level of consumption of PMS....... 🤣😂

Crimecity:
Kalu Aja

chudez0147:
Can his refinery employ 1% of unemployed youths

Aseneshii:
What do you mean by 25K ? A truck load of fuel is 45k Liters, that means less than one truck a day? that's not true. The current Dangote capacity is 2,500 trucks a day, multiply it by 45,000 = 112,500,000 liters, subtract 66,000,000 = 46,500,000 surplus daily. You can further verify this online. With Dangote Refinery alone Nigeria is self sufficient, beside, the 66m is NNPC figure, use in defrauding Nigeria with subsidy claims, our actual consumption is less than this.

Racoon:
It is just unthinkable idiocy for people to have a mindet that a sole monopoly like Dangote will better the lot of the comman man as far as Petroleum products affordability is concerned.

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

StPete:
I disagree

Asides the transportation cost, there are also clearing costs at the ports and other fringe costs in offloading the products into NNPC from outside the country.

Moreso, the crude can be bought in Naira (not Dollar) thereby reducing the pressure of acquiring dollar for external trade between Marketers and the external Refineries who do not trade in Naira. Dangote refinery buys in Naira and also sells in Naira

Mayflowa:
Nobody knows! 😆
The thing that encouraged that is subsidy. If fuel became surplus with subsidy only coming from crude supply to Dangote and others, anyone can go sell fuel outside Nigeria. Custom will be empowered to collect export tax on it. We just need to make sure we meet our crude export quotas from OPEC and also producing more for local consumption. Govt task is to increase crude production. We have the resources while curbing bunkering.

Crimecity:
Kalu Aja

grandstar:
You people never want to hear the truth. All you want is cheap petrol which is devastating the economy.

The Naira would probably be $1- N500 if the Buhari had deregulated the price in his first year in office.

The massive borrowing the government undertakes to finance the subsidy is very inflationary. And where you have high inflation, you automatically have currency depreciation.

Why has government reached this agreement with Dangote? It is simply because there is still a subsidy. There's no way Dangote can purchase crude oil at the market and still make a profit. A litre of crude oil sells for 720 per litre. I haven't added refining cost.

To those who say government should first build refineries before they remove subsidies can see it does not work. Dangote hasn't refined petrol because of the subsidy. The subsidy needs to go first by fully deregulating its price which will give investors the signal to build refineries.

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.

Sonofgod1990:
Useless country

called Nigeria. There plan is to make the price of fuel 1400 so that dongote will say that his own price is 1300.

Then the masses will think that dangote has helped Nigerians for deducting 100# for The people. Very useless country with some senseless foolish people. Thank God I'm still buying fuel at The rate of #175 with the help of my APC membership

MIKOLOWISKA:
is America or Saudi selling 400?

Solidex:
I think there is an unspoken reason why the FG, through NNPC, has taken two steps recently as it concerns energy crisis.

One is making NNPCL LIMITED the sole buyer of petroleum products from DR.
Secondly, is the recent covert hike in the price of PMS.
I thought over this and came to the conclusion that, perhaps the FG is trying to withdraw subsidy payment on gasoline or at least reduce it to a sustainable level.
It has become imperatives to do this because, the FG can longer bear the burden of subsidy.
Coming to think of it, the landing cost of petrol currently is around N1200/L. Comparatively, DR. should ideally sell lower than this price after taking into the cognisance, the lower cost of production since its an indigenous company. I believe, in which ever perspective one decides to examine this, the truth is, the cost of production here is inveriably lower than it should be for foreign companies for a number of reasons;
One is the fact that, raw material are sourced in naira, the cost of shipment and duties on crude is already out of the way, and other related wavers.

Hence, in order to eliminate subsidy or at least reduce it to the minimum, the federal government had to prepare the market and the minds of the citizens by arbitrarily jacking up the price through NNPC to N897/L. At this rate, the price is almost close to or exactly what should be ideal for D.R product and there would be little or no need for subsidy expenditure.
This is what I think is the unspoken truth that FG has not been bold enough to tell Nigerians, since they have not been very open in their subsidy payment ab initio.

breezeng:
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.