₦airaland Forum

Flangelo12:
Werey.

Cost of freighting and customs duties should surely impact the cost of sale.

Expert in what sef?

True talk. It's like these self crown experts sees all of us as fools. They did not factor the cost of transporting the crude to foreign refineries from Nigeria and the cost of bringing the finished PMS back into the country.

Bunch of paid propagandists, benefactor of hardship.

MEEVEET:
Majority of Nigerians are really ignorant little wonder why we produce the type of leaders we produce

Dangote refinery buys crude at international price, and you expect him to sale below international price for you because?

Average price of petrol is around 0.8 to 1.1 dollars internationally

Say 0.8 dollars thsts ₦1300 minimum

Nnpc would buy from him at 1300 and sale to you at ₦750... Paying a subsidy of ₦500 per litre while u buy at ₦850 to ₦8950

rubbish, you don't buy what you have in your backyard at international price . All those bullshit is an excuse. The boys who refine crude in the bushes of nigerdelta, do they buy crude at international price? Rubbish talk be supporting your slavers to talk rubbish

EMILO2STAY:
rubbish, you don't buy what you have in your backyard at international price . All those bullshit is an excuse. The boys who refine crude in the bushes of nigerdelta, do they buy crude at international price? Rubbish talk be supporting your slavers to talk rubbish

This is the ignorance I'm talking about... I would try to educate you

Firstly Nigerian oil cost billions of dollars to extract... And private companies spend between 2 billion dollars to 30 billion dollars to get a well to start producing

Then after that they give FG 55% of the profit


The bunkers steal already extracted crude oil of companies


Sometimes google

If the JV and PSC signed will bring no profit to the common man, then we can rightly say we do not produce crude in commercial quantities.

The contracts we have ensure that we enjoy royalties from FOCs, in oil and cash. My question is

What do we do with it?

I believe if we satisfy local demands, the largesse in government at all levels will end and we may finally have officials who ride bicycles to work.

Again, it makes no sense to sell off what you need. We may as well sell off all our agricultural produce only to import it at international prices.

Exerts with zero contributions to our economy

Let’s use layman analogy. I am a farmer and after harvesting I should be able to feed my family first before selling the excess at whatever price I choose

Why can’t Nigerians enjoy the crude given to us by God even without paying a dime.

MEEVEET:
Majority of Nigerians are really ignorant little wonder why we produce the type of leaders we produce

Dangote refinery buys crude at international price, and you expect him to sale below international price for you because?

Average price of petrol is around 0.8 to 1.1 dollars internationally

Say 0.8 dollars thsts ₦1300 minimum

Nnpc would buy from him at 1300 and sale to you at ₦750... Paying a subsidy of ₦500 per litre while u buy at ₦850 to ₦8950

Gasoline or Petrol World prices vary from USD 0.02 (Venezuela) to USD 3.27 (Hong Kong). That means in Venezuela it costs as.low as N 32.50 and in Egypt it is N 455.00

When Dangote was building his refinery, he was focused on selling the benefits of low Petrol and Diesel prices to Nigerians and was rewarded with preference by CBN for dollars at the lowest rate and even investment of over USD 1 Billion by NNPC. However I doubt that Dangote, who is a businessman after all, will prioritize any benefits to the masses.

I am thinking Dangote is in this to maximize what he can get from Nigerians and not interested in any benefits for the masses. What has he done with cement and any of his commodities ever to benefit the masses?

I only foresee him mending fences with NNPC to collaborate and keep Petrol and Diesel prices high at maximum benefit to both of them regardless.of the pain of the masses. For those trying to argue his pricing with international rates, is he paying international rate wages and salaries to his staff? Does he incur the two way transportation costs associated with fuel imports (i.e. absolutely no landing costs)? If he would be honest, at least his pricing should be 20% to 35% cheaper than the imported fuel cost.

Sources:

https://tradingeconomics.com/country-list/gasoline-prices?continent=world

Babinski:
Gasoline or Petrol World prices vary from USD 0.02 (Venezuela) to USD 3.27 (Hong Kong). That means in Venezuela it costs as.low as N 32.50 and in Egypt it is N 455.00

When Dangote was building his refinery, he was focused on selling the benefits of low Petrol and Diesel prices to Nigerians and was rewarded with preference by CBN for dollars at the lowest rate and even investment of over USD 1 Billion by NNPC. However I doubt that Dangote, who is a businessman after all, will prioritize any benefits to the masses.

I am thinking Dangote is in this to maximize what he can get from Nigerians and not interested in any benefits for the masses. What has he done with cement and any of his commodities ever to benefit the masses?

I only foresee him mending fences with NNPC to collaborate and keep Petrol and Diesel prices high at maximum benefit to both of them regardless.of the pain of the masses. For those trying to argue his pricing with international rates, is he paying international rate wages and salaries to his staff? Does he incur the two way transportation costs associated with fuel imports (i.e. absolutely no landing costs)? If he would be honest, at least his pricing should be 20% to 35% cheaper than the imported fuel cost.

Sources:

https://tradingeconomics.com/country-list/gasoline-prices?continent=world

Oga Venezuela is subsidized

America is taxed

International price are price it's sold in nations without the two

MEEVEET:
This is the ignorance I'm talking about... I would try to educate you

Firstly Nigerian oil cost billions of dollars to extract... And private companies spend between 2 billion dollars to 30 billion dollars to get a well to start producing

Then after that they give FG 55% of the profit


The bunkers steal already extracted crude oil of companies


Sometimes google

you are the one talking rubbish. The bunkers you refer to who steal from pipeline mostly sell the crude and do not refine. How many billion dollars did it cost the men who extract it from the ground to refine the oil in the bush! The illegal refiners whom your government continue to bomb and dismantle have been refining crude for years without all these brouhaha going on with federal government and fanfite. Dey there dey support the rubbish lie government is selling to the people as excuse.

EMILO2STAY:
you are the one talking rubbish. The bunkers you refer to who steal from pipeline mostly sell the crude and do not refine. How many billion dollars did it cost the men who extract it from the ground to refine the oil in the bush! The illegal refiners whom your government continue to bomb and dismantle have been refining crude for years without all these brouhaha going on with federal government and fanfite. Dey there dey support the rubbish lie government is selling to the people as excuse.

No body extract crude from ground oga

I grew in ph I know kpo fire thru still from pipeline

MEEVEET:
No body extract crude from ground oga

I grew in ph I know kpo fire thru still from pipeline

have you been to ogoni land? I am at eleme as I type now. They steal from pipe line yes but they also source it from the ground themsleves

EMILO2STAY:
have you been to ogoni land? I am at eleme as I type now. They steal from pipe line yes but they also source it from the ground themsleves

Oga listen to yourself


The hole thrh dig is so that the oil can flow from the pipeline

U think the oil comes out from ground? Lmao

MEEVEET:
Oga listen to yourself


The hole thrh dig is so that the oil can flow from the pipeline

U think the oil comes ouh
t from ground? Lmao

now I might not be fully knowledgeable about oil bunkery, I was speaking based on what I saw and how these guys get their crude. But my point is that what that guy saying is simply an excuse for resources domicile in our home country, right now in Venezuela fuel is sold for less than 200 naira per liter , because that is an oil producing nation even in war torn libya fuel is far less than what we buy here. This fuel price increase is simply politics due to dangote refinery

EMILO2STAY:
now I might not be fully knowledgeable about oil bunkery, I was speaking based on what I saw and how these guys get their crude. But my point is that what that guy saying is simply an excuse for resources domicile in our home country, right now in Venezuela fuel is sold for less than 200 naira per liter , because that is an oil producing nation even in war torn libya fuel is far less than what we buy here. This fuel price increase is simply politics due to dangote refinery

Oga it's impossible to dig a hole and crude start coming out 🙃 for heavens sake this is not movie

Crude oil are stored by nature in underground rock formation... With incredible built up pressure.. It you attempt it even if it's that shallow you would die instantly

Stop saying what you know little about

MEEVEET:
Oga it's impossible to dig a hole and crude start coming out 🙃 for heavens sake this is not movie

Crude oil are stored by nature in underground rock formation... With incredible built up pressure.. It you attempt it even if it's that shallow you would die instantly

Stop saying what you know little about

which ever way the bunkers get the crude the fact is that they refine this things which is not rocket science, so internal oil prices should not affect what we refine locally. Venezuela and war torn libya sell petrol for way less than what we buy here in Nigeria and they are oil producing nations just like Nigeria.

Getting the crude from. The ground is not the bases for increment in fuel prices. Afterall the pipe line was laid decades ago , so why say getting the crude from the ground is now more expensive so we have to increase the fuel price? That is nonsense excuse

EMILO2STAY:
which ever way the bunkers get the crude the fact is that they refine this things which is not rocket science, so internal oil prices should not affect what we refine locally. Venezuela and war torn libya sell petrol for way less than what we buy here in Nigeria and they are oil producing nations just like Nigeria.

Getting the crude from. The ground is not the bases for increment in fuel prices. Afterall the pipe line was laid decades ago , so why say getting the crude from the ground is now more expensive so we have to increase the fuel price? That is nonsense excuse

They steal the oil... So cost of crude is near zero

If those guys buy crude at international price they would make a huge loss

MEEVEET:
They steal the oil... So cost of crude is near zero

If those guys buy crude at international price they would make a huge loss

is not the same way the cost of crude should also be near zero for the multinational companies who laid pipe line they use in sucking the oil. Decades ago? Are they spending billions again every time they suck it out of the ground? As we speak these pipelines are moving oil in them constantly. So using international prices for oil that is in our backyard is not justified

EMILO2STAY:
is not the same way the cost of crude should also be near zero for the multinational companies who laid pipe line they use in sucking the oil. Decades ago? Are they spending billions again every time they suck it out of the ground? As we speak these pipelines are moving oil in them constantly. So using international prices for oil that is in our backyard is not justified

Nope, cost of oil production in nigeria is about 27 dollars per barrel

The government takes 55% of the profit

Then government still tax them on the 45% profit they keep

Some wells needs billions of dollars to make productive

MEEVEET:
Nope, cost of oil production in nigeria is about 27 dollars per barrel

The government takes 55% of the profit

Then government still tax them on the 45% profit they keep

Some wells needs billions of dollars to make productive

this explanation is bullshit. The international oil companies are not even metered, so what they take from the ground is not really know. And the sharing formula is between the I.O.C,s and the federal government is 60-40 ratio. The federal government taking 40% . The excuse before is landing cost and exchange rate. Now we have dangote who refines locally so why are they still giving excuses. If Venezuela and libya that are oil producing nations like Nigeria sell petrol at less than 200 naira per liter today ,then why can't Nigeria sell petrol like those countries without hiking the price unnecessarily. If this petroleum products where refined by modulla refineries there would not have been all these excuses , but because they want to use the monopolist dangote,..that is why he was allowed to build a refinery in the first place.

Baxilexi:
The factors that would determine how cheap the cost of pms would be is within the purvey of the government.

1, crude oil is our common patrimony and commodity, we get it through JVCs and now more than ever we need it for local consumption, so it should not be lost on a sensitive government to lessen the price at which it sells crude to Dangote, ensuring his produce is sold only to NNPC who can then export the surplus for additional income.

2, taxes - at this point Dangote should get a tax break to recover some of his investments and protect us the citizenry from transferred costs.

3, cost of production; a barrel of crude oil contains 159 liters, international rate for refining is between $3-5 per barrel. Hence the cost to refine a liter of crude is $0.0314 * 1600 = NGN 50.

Dangote’s and NNPC can reach a concession 50 box for your troubles, and a few cheap liters for your international business as a patriot.

With NNPC now in possession of crude that cost N50 a liter to refine, marking up for their logistics and other expenses, petrol should sell at less than N500 within Nigeria.

Hmm ....

You ignored the most important cost, which is the cost of the crude oil.
Average price of crude oil now is $77.
That's : 77×1600=123200Naria per barrel.


A barrel contains 42gallons of crude oil and each barrel gives you on average 19 to 20gallons of PMS.
1 gallon contains 3.7litres of pms.

Hence 1barrel= 20gallons of PmS= 20×3.7liters=74liters.

There is no way pms, would be sold below minimum 800naria, unless the Naria appreciates against the dollar or government subsides it.

The useless president, would have not devalued the naria.

The best option is for our government is to peg the Naria to dollar, while reforming the banking and currency exchange market.

EMILO2STAY:
this explanation is bullshit. The international oil companies are not even metered, so what they take from the ground is not really know. And the sharing formula is between the I.O.C,s and the federal government is 60-40 ratio. The federal government taking 40% . The excuse before is landing cost and exchange rate. Now we have dangote who refines locally so why are they still giving excuses. If Venezuela and libya that are oil producing nations like Nigeria sell petrol at less than 200 naira per liter today ,then why can't Nigeria sell petrol like those countries without hiking the price unnecessarily. If this petroleum products where refined by modulla refineries there would not have been all these excuses , but because they want to use the monopolist dangote,..that is why he was allowed to build a refinery in the first place.

The federal government takes 60% not 40%

Secondly, modular or large refinery, the most important factor that affects cost of petrol is the cost of the feedstock, which is crude oil.

The only way petrol can be cheap, is if the naria appreciates against the dollar,or government subsides it.

The first option is the best.

MEEVEET:
Nope, cost of oil production in nigeria is about 27 dollars per barrel

The government takes 55% of the profit

Then government still tax them on the 45% profit they keep

Some wells needs billions of dollars to make productive

True.

Some ppl think crude costs nothing to extract.

EMILO2STAY:
this explanation is bullshit. The international oil companies are not even metered, so what they take from the ground is not really know. And the sharing formula is between the I.O.C,s and the federal government is 60-40 ratio. The federal government taking 40% . The excuse before is landing cost and exchange rate. Now we have dangote who refines locally so why are they still giving excuses. If Venezuela and libya that are oil producing nations like Nigeria sell petrol at less than 200 naira per liter today ,then why can't Nigeria sell petrol like those countries without hiking the price unnecessarily. If this petroleum products where refined by modulla refineries there would not have been all these excuses , but because they want to use the monopolist dangote,..that is why he was allowed to build a refinery in the first place.

Ignorance is always loud sir

This would be my last response to you

Google is free yet you want to hold down to what you think u know

EMILO2STAY:
rubbish, you don't buy what you have in your backyard at international price . All those bullshit is an excuse. The boys who refine crude in the bushes of nigerdelta, do they buy crude at international price? Rubbish talk be supporting your slavers to talk rubbish

How do you sustain your oil industry if you don't buy it at international price?

Do you know that all oil and gas Operations are costed and paid for in dollars?

MEEVEET:
They steal the oil... So cost of crude is near zero

If those guys buy crude at international price they would make a huge loss

100% True.

sadaxxx:
For APC supporters and Tinubu fans who hoped and prayed that Dangote refinery would crash prices, wake up and smell the akamu
Don't mind what you're hearing, once you get to the fuel pump, just start singing "On ya mandate we shall stand..." and the price will come down.

Lol....
I warned the Fools,.

The only way petrol can be cheaper without subsidy, is if the naria appreciates greatly against the dollar.
Like $ 1 is equal to 700naria or less.

blueAgent:
How do you sustain your oil industry if you don't buy it at international price?

Do you know that all oil and gas Operations are costed and paid for in dollars?

why should it be paid foe in dollars if you sourced it locally.

MEEVEET:
Ignorance is always loud sir

This would be my last response to you

Google is free yet you want to hold down to what you think u know

which ignorance, except you don't know. I buy kerosene lower than The price petrol stations sell because the kerosene is kpo fire. Why is the kpo fire kerosene cheaper? This goes to show you that these petroleum products prices are inflated by the power players. They here dey talk wetin you no know as if you know. Why is Venezuela and libya selling fuel for way lower than what you can only dream of buying in Nigeria when Nigeria is a crude oil nation just like them?

EMILO2STAY:
why should it be paid foe in dollars if you sourced it locally.

What is sourced locally?

The compressors, turbines,pipes, chemicals, drill pipes, drill muds, drilling services, well completions and servicing e.t.c are all imported materials or services offered mostly by foreign companies and they charge in $$$$.

The oil and gas industry globally is a dollar dominated industry.

EMILO2STAY:
which ignorance, except you don't know. I buy kerosene lower than The price petrol stations sell because the kerosene is kpo fire. Why is the kpo fire kerosene cheaper? This goes to show you that these petroleum products prices are inflated by the power players. They here dey talk wetin you no know as if you know. Why is Venezuela and libya selling fuel for way lower than what you can only dream of buying in Nigeria when Nigeria is a crude oil nation just like them?

Kpo fire people steal crude

Their cost of crude is zero

Venezuela and Libya are small population with big crude oil production

Nigeria crude oil per capita crude oil production / population is similar to that of Ghana

Like I said ignorance is bliss

MEEVEET:
When volume is in millions of barrels transportation cost becomes negligible... In fact it's far far more expensive to move petrol from depot to other part of Lagos than from India to depot... I thought u studied economics?

Read what you posted again and compare it with the reality on ground. How many barrels are to be sourced from nnpc before you typed rubbish of studying economics?
Please state the relevant cost here