₦airaland Forum

Bobloco:
The price remains a mystery just to rip off Nigerians

That's where they want to kill Nigerians

Funkyswagzz:
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

you're wrong sir. There's nothing like international price for a commodity produced locally. You can't be using international price for a commodity you have comparative and absolutely advantage above others.

Subsidy in Nigeria is as a result of buying fuel at the International market while abandoning our refinery.

Now that we have Dangote refinery, international market price holds no water. We only pay for the cost of extracting raw crude and refining at Dangote refinery. FG does not need to subsidise anything again.

You only pay subsidy for a commodity that is too expensive to produce or not produced at all in you country. Nigerians have no reason buying fuel above 300 with Dangote refinery in place. #300 is even too expensive.

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

U are not thinking smart. If NNPC isn’t middleman, and Dangote decides to sell to marketers directly, u might probably be buying a litre at N1650.

If you buy at N1650/L, u be complaining about Tinubu bla bla.


Subsidy will still be paid to Dangote but in crude, which makes excellent sense.

Gradually, importation will end, and forex will be saved.

I hope they keep it this way to ensure steady supply.

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

Everything is clear and yes, you are right

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

What I can deduced from the situation is that Fg is not faithful about subsidy,Dangote has no choice than to play along. The actual price of fuel from Dangote is still not known or should we say that fg is trying to discourage smuggling by setting price for the fuel to curb smuggling. If that is the case we shouldn't be groaning in pains because Fg cannot secure borders.

My question is can Nigeria consume the volume of petrol bought with 385barrwl of crude oil? What will happen to the Excess petrol

casualobserver:
Dangote refinery does not need Nigeria to survive. He can import all his crude and export all his products.

Singapore does not produce ANY crude and it is one of the largest petroleum refiners in the world. India has the largest refinery in the world, it produces relatively little crude.

The deal was done to help Nigeria solve its problems not to help Dangote. Dangote does not need Nigeria.

DRL needs Nigeria to survive.

I hope Nigerians get the best benefit at the end of the day.
This is clash of cabals with their personal interests at stake!

FG is going to have to subsidize the supply from Dangote, thats the only way he would be able to compete. The transactions would be done in Naira so I see a bright future for the Nigerian economy

Mandate1:
you're wrong sir. There's nothing like international price for a commodity produced locally. You can't be using international price for a commodity you have comparative and absolutely advantage above others.

Subsidy in Nigeria is as a result of buying fuel at the International market while abandoning our refinery.

Now that we have Dangote refinery, international market price holds no water. We only pay for the cost of extracting raw crude and refining at Dangote refinery. FG does not need to subsidise anything again.

You only pay subsidy for a commodity that is too expensive to produce or not produced at all in you country. Nigerians have no reason buying fuel above 300 with Dangote refinery in place. #300 is even too expensive.

Oga please with all due respect you are confusing yourself please go do a little research even Russia that has oil pay subsidy to there refineries to keep the price of fuel down.

richmond500:
DRL needs Nigeria to survive.

it does not. Don’t just make empty statements. Back it up with reasoning and facts
/data. I have told you why he does not need Nigeria. Dangote has been producing diesel and jet-A1 since June. He has been exporting over 90% of it. He can do the same with petrol.

He has been producing diesel for months, have you seen colorless diesel in the market?

richmond500:
wait, continue payment of subsidies?
Abi did I read that wrong?

Are you part of those that believed subsidy was scrapped?

Very funny, Subsidy remains , until Nigerian's Refineries start truthful operations, that's when there will be a meeting to sort out subsidy but for now, Tinubu didn't remove any Subsidy....

Funkyswagzz:
Oga please with all due respect you are confusing yourself please go do a little research even Russia that has oil pay subsidy to there refineries to keep the price of fuel down

smile.

What is the production cost of litre of fuel from the refinery? I don't mean cost of importation and tax.

I neva said subsidy cannot be paid even if we produce locally. I only said the Nigerian subsidy is as a result of importation cost and not the actual cost of production.

If we are to hó by the current fuel price, are you telling me that Buhari paid over 500 to subsidise a litre of petrol?

profmallor:
FG is going to have to subsidize the supply from Dangote, thats the only way he would be able to compete. The transactions would be done in Naira so I see a bright future for the Nigerian economy

You people do not understand the workings of the industry. Dangote can sell his petrol anywhere in the world. He has been exporting 97% of his diesel. The only reason NNPC is subsidizing petrol from DRL is the same reason they were subsidizing imported PMS. The cost of PMS is higher than the price the people are prepared to pay.

Dangote does not have to sell his petrol in Nigeria or source his crude from Nigeria. It is not Dangote that needs Nigeria, it is Nigeria that needs Dangote.

NNPC has simply said we will give you crude of x value and you will give us PMS of X value. We will then sell it at whatever price we like.

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

it is a regulatory means to avert the smuggling of subsidised PMS to neighbouring countries by independent marketers.

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

Get your facts right without any sentiment.

Dangote wanted NNPC to buy directly from the refinery as the sole-offtaker because the refinery is selling at higher price.

richmond500:
everything is clear, NNPCL will monopolize the market, subsidy will continue.
The other marketers won't have a choice but to buy from NNPCL.
There is no competition here.
mynd44 nlfpmod fergie001

You and I know that any market with no competition isn't good for the consumers

Mandate1:
you're wrong sir. There's nothing like international price for a commodity produced locally. You can't be using international price for a commodity you have comparative and absolutely advantage above others.

Subsidy in Nigeria is as a result of buying fuel at the International market while abandoning our refinery.

Now that we have Dangote refinery, international market price holds no water. We only pay for the cost of extracting raw crude and refining at Dangote refinery. FG does not need to subsidise anything again.

You only pay subsidy for a commodity that is too expensive to produce or not produced at all in you country. Nigerians have no reason buying fuel above 300 with Dangote refinery in place. #300 is even too expensive.

This would make sense if all our crude oil is produced by NNPC but that's not the case. So the cost of producing the crude by shell,chevron, etc is done in dollars. The cost of producing crude worldwide is done in dollars. Producing crude is not thesame as producing cocoa beans or cash crops.

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?

If you ask me, na who I go ask? 🤷

Compromise has probably been made at the detriment of the common man ALLEGEDLY

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

So many thing doesnt add up, 1st it is the fact even now they have refuse to tell us dangote price
when dangote said Nnpc are vying to be sole distributor, shebi Nnpc denied it , what just played out

i think the arrange quotation is to give dangote good quota to export as that will augment whatever loss he takes on the naira deal.


They should tell us dangote price, thats what we want to know oooo

Mandate1:
smile.

What is the production cost of litre of fuel from the refinery? I don't mean cost of importation and tax.

I neva said subsidy cannot be paid even if we produce locally. I only said the Nigerian subsidy is as a result of importation cost and not the actual cost of production.

If we are to hó by the current fuel price, are you telling me that Buhari paid over 500 to subsidise a litre of petrol?

Bros i wish I can drop a voice note for you and explain everything properly. Fuel subsidy varies and it also depend on the cost of crude oil per barrel. The only time subsidy won't be paid to anyone is when the port harcourt refinery, warri refinery starts working. Do you even know how much it takes to make fossil fuel environmentally friendly? Do you know that nnpc would prefer to sell crude oil than refine it?

At this point who competition help. Once you have more players in the market they will eventually de regulate.

First objective met refining ✔️ done in Nigeria creating Nigérian jobs for mainly Nigérian people.

richmond500:
everything is clear, NNPCL will monopolize the market, subsidy will continue.
The other marketers won't have a choice but to buy from NNPCL.
There is no competition here.
mynd44 nlfpmod fergie001

There is nothing cooking on that. Total subsidy has long been removed on diesel , which the public has since been paying. On petrol, by the price government is giving out to the public, they still want to keep subsidising it, because Dangote price is over 1,100. If Dangote is to sell to the public, expect price range of 1300 . Do you know how the outcry will be? You didn't read the line that said government will continue to pay the subsidy?
They didn't want to start paying subsidy on diesel again , that one has since been deregulated.

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

The agreement is expected to ease the acute shortage of petrol across the country and also allow the government to continue the payment of subsidies on the product.Hmmm I smell rat

psucc:
Crude oil, Crude policies, crude price. No transparency at any level. Just CRUDE

The agreement is expected to ease the acute shortage of petrol across the country and also allow the government to continue the payment of subsidies on the product.Hmmm I smell rat

tutudesz:
Business is business.
Hopefully the price will be better than imported product

why is the price not included in this information? is the price coming from another country?
price is the main focus here for a common man, why is the price not mentioned?

casualobserver:
it does not. Don’t just make empty statements. Back it up with reasoning and facts
/data. I have told you why he does not need Nigeria. Dangote has been producing diesel and jet-A1 since June. He has been exporting over 90% of it. He can do the same with petrol.

He has been producing diesel for months, have you seen colorless diesel in the market?

Dangote said things are very difficult cos the marketers aren't patronizing and he only expect, also he said they can't fill up to 5% of its capacity cos of low patronage, he also had to bend to NNPCL rules of buying in naira just to have things work.
He said he had to pay the price

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

They still havent published d deal n this is not right under freedom of information act.Wat is exchange used for this transaction?
Wat is price of pms dangote is giving to nnpcl?
Wat price is nnpcl giving to Nigerians?
Why is nnpcl middlemen here n wats d advantage?
Why is everything happening in secret?

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

There's absolutely nothing cooking! The fact is simply that the government is still subsidizing PMS. Dangote refinery is a profit making organization, not a charity,so they'll definitely be selling their products at the international market rate. According to sources, the landing cost of PMS hovers around #1200 per litre,if we deduct the cost of transportation, the duties to be paid and the rest,it can't be less than #1000 a litre, hence the NNPCL buying from Dangote and subsidizing the shortfall.

chidiokay:
So many thing doesnt add up, 1st it is the fact even now they have refuse to tell us dangote price
when dangote said Nnpc are vying to be sole distributor, shebi Nnpc denied it , what just played out

i think the arrange quotation is to give dangote good quota to export as that will augment whatever loss he takes on the naira deal.


They should tell us dangote price, thats what we want to know oooo

Thanks
And again what does attacking me dont understand is that the government is saying DRL will produce an equivalent of the crude oil given to him. Question is how much is DRL getting paid for refining the oil. Because with this statement NNPCL is just giving him crude oil to refine.
Its like me giving my fresh pepper to a grinder, the grinder would give me an equivalent of what of the pepper and then I would have to pay for the services. What is the cost implication?
I a asking so that we have an idea if we are being cheated or not

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

You are confusing barels with litres. 30 million litres is what NNPC claim they supply while they supply 350k barels of crude oil. Crude oil is measured in barels while petrol is measured in litres.