₦airaland Forum

drlateef:
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.

Exousiang01:
I dont think you understand my comment.
Crude oil is measured in barrels not in litres so NNPCL cannot supply DRL with 30m litre of crude like you have said
I have years of experience in the oil and gas, I have 2 mudloging units in Nigeria and 3 outside Nigeria. I know exactly what a barel of crude is.
More over i never mention petrol i never talked about the output.
I am only talking about the input and the feedstock
You obvioulsly dont understand what that means seeing that you are talking petrol when we are talking crude.
And again you got you information wrong because it was DRL that said they have recieved 30m barrels from NNPCL and are expecting another 11m barrels by october.
DRL would not be recieving petrol from NNPCL would they?

lexy2014:
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?

Image123:
What stops Dangote from exposing anything worthy of exposure?
i don't need to have a personal discussion with you to see that you were for Dangote against the government AFTER the refinery came to life, THROUGH the government.

Image123:
Dangote your saviour

dinomalaiye:
Let us see the fuel first before you broadcast the news.

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?

GeneralDae:
But Dangote is still having problems importing with dollars. As we speak, two ships are stuck on the sea and refused to sell crude to him because he is struggling to fund his Letters of credit in dollars. He needs this naira deal as a base for survival.

richmond500:
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

Funkyswagzz:
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?

casualobserver:
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.

profmallor:
I disagree, Dangote himself is only bluffing. Except for the proximity of his refinery to west africa, which may encourage WA countries to patronize him, marketers in Nigeria may choose to buy refined oil from Malaysia and still sell cheaper then Dangote, case in point is the cost of cement. If the FG allows for the mass importation of cement, Dangote and BUA would run out of business.

Dangote has done well, his refinery would be a game changer, however FG have to protect him else the free-market forces would kill him. it is in the interest of Nigeria, Nigerian and Dangote that is refinery is able to supply us all, however someone would have to pay for the over head cost of not allowing a free market, and that would have to be subsidy.

But hey, better to subsidize in Naira than look for $$$ thats scarce.

casualobserver:
Go and rest, this thing is clearly above your pay grade!

Mandate1:
my question is, how much does the Buhari govt pay to subsidise a litre of fuel?

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

casualobserver:
I am not aware of that. But even if that is the case it is just short term. By definition he makes more selling refined products than the cost of the crude.

Gbogbowa:
The way some of you think and talk, enh! Is it Dangote that should go to jail, or NNPCL officials like Kyari and co? If you've really been following this matter, you would not just jump into it now to comment

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?

F117nighthawk:
Yes because of subsidy scam,they want to continue the subsidy looting,there is no subsidy on diesel it's completely deregulated,u now see that it's only NNPC that can buy petrol directly from Dangote.NAIJA government is a complete conspiracy against transparency and good governance


quote author=Aile post=131993106]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

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

Funkyswagzz:
Bro you asking the wrong questions, look the reason fuel subsidy is paid is to make sure your country maintain a steady price of pms and also control the environmental hazards of fusel fuel. The higher the price of crude oil per barrel the higher the subsidy you pay. So for you maintain a steady or moderate price you pay for subsidy according to your exchange rate as we've witnessed in Nigeria over the passed years.

Now looking at the case of dangote refinery the government could still pay subsidy to bring the price a little but the good news is dangote refinery is in Nigeria so all possible transactions won't go through the petro dollar. What this means is that Nigeria will have a negotiating term with dangote refinery to find a balance on pms demand and supply. The question is will dangote refinery or nnpc reflect on the volatility of crude oil to price of pms or will nnpc pay the difference to stabilise the pump price?

Mandate1:
you are just talking subsidy here nd subsidy there. My question remains.. What is the cost of producing a litre of petrol?

Secondly, are you telling me the govt of Buhari paid over #500 to subsidise a litre of petrol it sold at #160 per litre?

Funkyswagzz:
Lol cost of production range from $3 to $43 depending on the type of oil you are refining be it light or heavy oil. So what do you want to do with this information

Mandate1:
$3 per litre? Bros fear God na. You can't even do simple Google search to save yourself.

Funkyswagzz:
Per barrel not litre. You don't refine oil per litre thats a dumb question

Mandate1:
this guy sef. So if you measure by barrel, won't you divide the barrel by the number of litres that make a barrel? Nawa for you. You tire me.

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.
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