₦airaland Forum

Just float your own Gas Station

When tomorrow reach now they will say it's next year again

tabaralph:
This truly makes sense but trust me there’s no way subsidies can be eradicated otherwise common man wouldn’t be able to buy the PMs.

Some countries don't pay subsidies on fuel and the people buy it at that price.

Nigerians are FOOOOLLLLLLS!

Aile:
Corruption of the highest order. Come to think of it why will the nnpc allow dangote to sell diesel to independent marketers directly and refuse selling of petrol to them directly? Something is cooking

I also dey wonder o

JuanDeDios:
I think you're chasing a strawman. DRL receives at the rate of 650 bpd. NNPC wants to supply at the rate of 350 bpd, over 50%. Where is the problem? If they will supply it in bulk or supply it daily and gather it like pepper, I'm sure they can easily resolve that. The issue of starting stock has long been dealt with imports and all, so why are you bringing that up?

I like that you used to word starting stock
Again let me ask if you are aware that DRL has been refining AGO, Aviation oil etc, what do you think he has been using?
You think they have not been using the stock they imported?
NNPC needs to up their game because DRL is still gonna still have to continue importing crude because 380k pbd will not cut it at all

dinomalaiye:
Let us see the fuel first before you broadcast the news. We can hardly take these people's word serious anymore.

Them de lie too much

Exousiang01:
You dont seem to understand how this works
Yes his capacity is 600k but he needs a feed stock of 6m barrels.
How many 350bpd will give him the feedstock.
Because going by this 350k bpd he would have to still import crude because he needs 6m barrels in the feedstock for him to produce.

What are we saying here....DIL has been and still exporting diesel and jet A1 from the shipments it got from US, Brazil and even NNPCL ab_initio.....are you implying they've been doing so on empty feedstock.

The emphasis here is on the volume to meet the daily production, 6 million barrel stock capacity gives DIL production capacity for 10days going by the refinery maximum daily output of 600kbpd and 15th September is just tomorrow and what ever stock shortfalls there is will be equalised in less than a week going by the 385kbpd arrangement with NNPCL.

FG or NNPC?

AmazingELixir:
What are we saying here....DIL has been and still exporting diesel and jet A1 from the shipments it got from US, Brazil and even NNPCL ab_initio.....are you implying they've been doing so on empty feedstock.

The emphasis here is on the volume to meet the daily production, 6 million barrel stock capacity gives DIL production capacity for 10days going by the refinery maximum daily output of 600kbpd and 15th September is just tomorrow and what ever stock shortfalls there is will be equalised in less than a week going by the 385kbpd arrangement with NNPCL.

Thats is what I am telling you, he had to bring in millions of crude from Brazil and US to refine his AGO, aviation oil, etc right? Which he has been using…. Going by the qauntity he has shipped in, his production capacity do you really think 380kbpd will fly?
DRL is still gonna have to import because that 380kbpd wont hold for long

Bobloco:
https://www.vanguardngr.com/2024/09/fg-dangote-reach-agreement-on-petrol-supply-lifting-begins-tomorrow/

In all of this, the price hasn't been mentioned.

richmond500:
So NNPCL will be the sole-oftaker and every other person will buy from them while subsidy still continues?

What's the nonsense talk about open market with willing buyer willing seller aggrement and enticing investors into the country?

all are just paper talk to deceive us. The law of demand and supply no longer applies, it's now monopolistic wholesaler.

Funkyswagzz:
If this fuel is sold below 1000 its honest tho the price can't go less than 900 without subsidy

but why? What do you understand by subsidy?

Them no mention price oh. How much we wan dey buy fuel like this.

Omalicious1:
In all of this, the price hasn't been mentioned.

The price remains a mystery just to rip off Nigerians

lexy2014:
To the tune of how much?

Until they start selling, we can’t say for now

Very good news.

Mandate1:
but why? What do you understand by subsidy?

the government fixes the price of petrol for consumers below the international price and uses government resources to pay for the difference that is fuel subsidy

Image123:
What stops Dangote from exposing anything worthy of exposure?

Can you show me the discussion we had were it was agreed that dangote is my saviour or otherwise?

How is dangote "your saviour"?

Do you want dangote fuel to expose the fraud that nnpc has been perpetrating in the name of subsidy payment and landing cost?

Crude oil, crude country, crude methods. .... Very crude in everything

Exousiang01:
I like that you used to word starting stock
Again let me ask if you are aware that DRL has been refining AGO, Aviation oil etc, what do you think he has been using?
You think they have not been using the stock they imported?
NNPC needs to up their game because DRL is still gonna still have to continue importing crude because 380k pbd will not cut it at all

Not sure what your point is now. Of course, DRL has been using imported crude!

Why is fangote, a private business owner negotiating price like this?

Why can't he sell on his own make we see how transparent he is

designking:
Without a subsidy on petrol, price per litre might go as high as ₦1,100 and this will spell doom for the government and APC. The opposition wants petrol to sell above ₦1,000 and this will be a template for civil unrest.

The best option is to subsidize petrol for now using Naira and also doing crude-petrol swap with Dangote Refinery.

This way, we can reduce the pressure of the Dollar allowing Naira to exchange around ₦1,000 to ₦1,200. Also inflation will gradually reduce.

A stronger naira means cheaper petrol. Within the next 6months the economy will greatly stabilise.

Naira may not stabilise in the immediate though because Dangote would still have to import above 250,000bpd crude oil in dollars and NNPC's crude to Dangote in Naira means NNPC is not exporting that crude so the net gain is little.

The biggest problem for the fx market in all of these would have been Dangote taking all those Naira he gets from selling in Nigeria and then seeking for fx with all of those from the CBN. That would have meant more pressure on the naira but the president solved that issue by arranging with Afrexim Bank. Afrexim would take all the naira from Dangote and give him dollars. Afrexim can then get those dollars back from Nigeria in small measures overtime so as not to put pressure on the fx.

Yeah, their planned script is working so lifting begins after creating artificial scarcity.

Clowns.

Ngasky:
Why is the pms only for NNPC? That means NNPC will be the middlemen here.
Something is not clear here

Nothing is ever clear to you

richmond500:
So NNPCL will be the sole-oftaker and every other person will buy from them while subsidy still continues?

What's the nonsense talk about open market with willing buyer willing seller aggrement and enticing investors into the country?

It’s dangotes decision to sell to whom he wants

designking:
Exactly... Dangote actual price cannot be less than ₦1,000.

The advantage with local production is that, the subsidy is easier to pay as Dangote will pay tax and FG is also a co-owner of the refinery.

Eventually subsidy on petrol will be totally removed as Naira strengthens. With local petrol production, the pressure on the Naira will moderate allowing Naira to exchange around ₦1,000 - ₦1,200 to a dollar in the near future. This implies a 30% reduction in the cost of petrol.

The focus should be how local petrol production eventually stabilise the Naira-Dollar exchange rate.

Exactly and Naira may not stabilise in the immediate though because Dangote would still have to import above 250,000bpd crude oil in dollars and NNPC's crude to Dangote in Naira means NNPC is not exporting that crude so the net gain is little.

The biggest problem for the fx market in all of these would have been Dangote taking all those Naira he gets from selling in Nigeria and then seeking for fx with all of those from the CBN. That would have meant more pressure on the naira but the president solved that issue by arranging with Afrexim Bank. Afrexim would take all the naira from Dangote and give him dollars. Afrexim can then get those dollars back from Nigeria in small measures overtime so as not to put pressure on the fx.

NNPC is very arrogant. Only when someone blackmails them they will now come out defensive. Address these issues with media briefs, na lie. No transparency whatsoever. NNPC is accountable to Nigerian people whether they like it or not.

Ngasky:
Why is the PMS only for NNPC? That means NNPC will be the middlemen here.
Something is not clear here

The PMS needs to go through NNPCL for subsidy to be added. The populace cannot buy it directly from Dangote.

tefund:
Are you aware Dangote refinery imports the bulk of its crude?NNPC can only meet a fraction of its total need..

NNPC would sell 385,000bpd crude to Dangote in Naira from October. That's over 60% of all the crude Dangote needs and a good deal given Dangote has been struggling to pay for his imported crude and some ships are stuck in the sea and have refused to upload to him so Dangote needs this deal from NNPC as well.

Exousiang01:
This story doesnt add up
NNPC is already supplying 30m parels to DRL

350k barel is as insignificant as the last “ue” in Queue for a redinery with a capacity of 600k
And a feed stock of 6m

DRL already said they are getting 11m barels by october and they have recieved 30m barels already.

This story doesnt add up.
No price

360k per day is far better than waiting for tanker load of 2m every two weeks
It's more than enough

tefund:
NNPC as a company doesn't produce up to 350k per day of crude ,the bulk of our crude is produced by IOC and a good percentage of NNPC crude is already tied to foreign loan ...

You are wrong. Since 2005, NNPC always preserved 445,000 bpd of crude which is called Domestic Crude Allocation (DCA). This is what they have been using as SWAPS and doing forward contracts with. Because of the subsidy corruption, NNPC have been exporting little from this DCA since 2016. This is also a major reason the naira has suffered as terribly as it did since 2016.