₦airaland Forum

The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that it bought fuel from Dangote Refinery at N898 per litre.

The oil firm had moved about 300 trucks to the 650,000 capacity refinery in Lagos, on Saturday, and loading commenced on Sunday.

Speaking with Daily Trust over the price of premium motor spirit (PMS), otherwise known as petrol, Chief Spokesperson of the NNPCL, Olufemi Soneye, said, “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per liter.”

He told our correspondent that as of the time of filing the report, over 70 trucks had been loaded.

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, had announced that NNPCL would be the sole off-taker of refined petrol from Dangote Refinery.

At the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira, on Friday, the Finance Minister who was represented by Zacch Adedeji, Executive Chairman of Federal Inland Revenue Service (FIRS), had said diesel from the Dangote Refinery would be sold in Naira to any interested off-taker, while PMS would only be sold to NNPCL, which will then sell to various marketers.

He announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.

FEC under the leadership of President Tinubu had approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.

The government explained that the initiative was aimed at reducing pressure on the naira, eliminating unnecessary transaction costs, and improving the availability of petroleum products in the country.

“Since then, the implementation committee chaired by the Hon. Minister of Finance and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval.

“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September. From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.

“In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira. Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.

He added that all associated regulatory costs (NPA, NIMASA, etc.) will also be paid for in Naira.

The government, according to the minister was also setting up a one-stop shop in Lagos, that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.

Source https://dailytrust.com/breaking-we-bought-fuel-from-dangote-at-n898-per-litre-nnpcl/

Based on the feedback from NNPC my price pyramind prediction is thus =

Dangote Sale Price = N898
NPPC Sale Price = N898 + X?
Marketers Sale Price = N898 + X? + X?
Petrol Station Sale Price = N898 + X? + X? + X? = Find X ??

Wicked set of homo sapeins.

Very very heartless, cunning and deceitful.

This merciless govt again.

Tinubu's gf said N898 is better than N140

Allow marketers to buy directly if you are not going to subsidise

That's 900 naira. Which means retailers will sell around or above 1,200 naira.

Next year inflation will be ebin pawa pro max.

This is very heartless indeed, all our expectations for at least N500/litre finally dashed. Then what is d need for Dangote refinery on our soil if i may ask. Na God go help the poor.

No more subsidy from government, so why can't nnpc leave buying and selling of refined petrol alone for marketers and Dangote?

Don't they have other places to steal from, must it be from PMS sale?

The price regulator is telling us this.

Vote good government una say no ….. make una continue.

See them parading everywhere from thread to thread like Buhari regime.

Bbg

figment232:
This is very heartless indeed, all our expectations for at least N500/litre finally dashed. Then what is d need for Dangote refinery on our soil if i may ask. Na God go help the poor.

When we tried to explain this thing 5 years ago, we were called enemies of progress.
Refining PMS worldwide is a very very low margin business. Refineries normally take like 4-5 Months Forward PMS Off-take Contract so that they can also do forward purchase of crude. It’s a liquidity business.
Somehow, Nigerians were erroneously convinced that it will be cheaper.

As it is, it is obvious that NNPCL is even doing Dangote a favour by being the sole offtaker.
Dangote needs liquidity. Only NNPCL can give him.

Watch dumbos in the name of BATerians come here to justify this price by comparing it with the price of a liter of petrol in Ghana, Chad, Niger, Benin Republic, and other neighboring African countries.

So, NNPCL's price is the high margin of the price it gave Nigerians less than 2 weeks ago.

On Tuesday, September 3rd, the NNPC raised the price of PMS from its former prices of between N568-N617 per liter to between N855- N897 per liter.
https://www.arise.tv/further-petrol-price-hike-looming-in-nigeria-as-nnpc-says-n897-litre-isnt-market-reflective/

Up Nigerians!

Rubbish

So how much will NNPC sell?

The more you look
The less you see
Nigeria for you

Krucifax:
The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that it bought fuel from Dangote Refinery at N898 per litre.

The oil firm had moved about 300 trucks to the 650,000 capacity refinery in Lagos, on Saturday, and loading commenced on Sunday.

Speaking with Daily Trust over the price of premium motor spirit (PMS), otherwise known as petrol, Chief Spokesperson of the NNPCL, Olufemi Soneye, said, “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per liter.”

He told our correspondent that as of the time of filing the report, over 70 trucks had been loaded.

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, had announced that NNPCL would be the sole off-taker of refined petrol from Dangote Refinery.

At the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira, on Friday, the Finance Minister who was represented by Zacch Adedeji, Executive Chairman of Federal Inland Revenue Service (FIRS), had said diesel from the Dangote Refinery would be sold in Naira to any interested off-taker, while PMS would only be sold to NNPCL, which will then sell to various marketers.

He announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.

FEC under the leadership of President Tinubu had approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.

The government explained that the initiative was aimed at reducing pressure on the naira, eliminating unnecessary transaction costs, and improving the availability of petroleum products in the country.

“Since then, the implementation committee chaired by the Hon. Minister of Finance and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval.

“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September. From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.

“In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira. Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.

He added that all associated regulatory costs (NPA, NIMASA, etc.) will also be paid for in Naira.

The government, according to the minister was also setting up a one-stop shop in Lagos, that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.

Source https://dailytrust.com/breaking-we-bought-fuel-from-dangote-at-n898-per-litre-nnpcl/

Based on the feedback from NNPC my price pyramind prediction is thus =

Dangote Sale Price = N898
NPPC Sale Price = N898 + X?
Marketers Sale Price = N898 + X? + X?
Petrol Station Sale Price = N898 + X? + X? + X? = Find X ??

Nlfpmod, you can see their lies again. Please let us import from Malta at N520 per. Dangote is not a sincere business man.

Aile:
The more you look
The less you see
Nigeria for you

I told you earlier, Dangote refinery is, the more you know, the less you understand.

I don't know why this government lie so much... This is becoming a sickness

There is no way under the sun dangote can sale petrol at ₦898... It's absolutely impossible

Crude oil cost 72 dollars per barrels it cost 5 dollars to refine averagly that's 77 dollars

There are 159 litres in a barrels

5% of crude is lost during refining average that's so we have 151 litres

refinery expect 40-45% gasoline, 25-30% diesel, 5-10% aviation fuel, and about 15-25% "other"

So let's use 45 petrol, 30 diesel and 10% aviation fuel ( kerosene +diesel blend)

The remaining 15% is basically worthless

For simplicity sake let's assume petrol diesel and kerosene are same price

85% of 151 = 129 litres of products
Crude cost + refining cost = 77*1650 = 127,050

That gives us a cost price of ₦985

Let's say dangote sets a profit margins of 15%

That gives us a final price of
₦ 1,132

I have been very very conservative here... Cost of refining, and yield but this is the minimum dangote can sale his petrol

hisgrace090:
This merciless govt again.

You are not condemning Dangote that sold at that price,but the goverment.
Same way Nigerians didnt learn from the knowledge that tinubu will wreck this nation is same way they won't learn that Dangote has no interest in helping anyone.
Lets wait,by December fuel will be 1200 -1500 and won't come down below 1500-1700 by next year

Good news.

The price of petrol is going to crash soon.

iwaeda:
Nlfpmod, you can see their lies again. Please let us import from Malta at N520 per. Dangote is not a sincere business man.

I don't know why we keep blaming Dangote, didn't he buy the crude from NNPCL?
A litre of crude is approximately N724

I cannot understand this country at all

jmoore:
That's 900 naira. Which means retailers will sell around or above 1,200 naira.

Next year inflation will be ebin pawa pro max.

NNPC will sell below N900 to marketers so that they can sell to Nigerians at around N900.

MEEVEET:
I don't know why this government lie so much... This is becoming a sickness

There is no way under the sun dangote can sale petrol at ₦898... It's absolutely impossible

Crude oil cost 72 dollars per barrels it cost 5 dollars to refine averagly that's 77 dollars

There are 159 litres in a barrels

5% of crude is lost during refining average that's so we have 151 litres

refinery expect 40-45% gasoline, 25-30% diesel, 5-10% aviation fuel, and about 15-25% "other"

So let's use 45 petrol, 30 diesel and 10% aviation fuel ( kerosene +diesel blend)

The remaining 15% is basically worthless

For simplicity sake let's assume petrol diesel and kerosene are same price

85% of 151 = 129 litres of products
Crude cost + refining cost = 77*1650 = 127,050

That gives us a cost price of ₦985

Let's say dangote sets a profit margins of 15%

That gives us a final price of
₦ 1,132

I have been very very conservative here... Cost of refining, and yield but this is the minimum dangote can sale his petrol

We don’t know the price at which FG sold crude oil to Dangote and the exchange rate. If I don’t know anything, I am 100% sure the exchange rate used in the transaction is definitely not $1=N1650.

In transactions like this, a fixed rate below the market rate would have been agreed to because of the volatility of the exchange rate.

ALTERNATEID:
■ NNPC will sell below N900 to marketers so that they can sell to Nigerians at around N900.

You dey Nigeria so? Or you mean say NNPCL go dey pay marketers subsidy so they can charge you only Naira 900?

Please, APC supporters will get their own cheaper.

Kobojunkie:
You dey Nigeria so?

The official price at most filling station here in Abuja is still around N900 so what’s your point?

ALTERNATEID:
■ The official price at most filling station here in Abuja is still around N900 so what’s your point?

Is the price of that same fuel the same across all of Nigeria as well?