₦airaland Forum

EMIOMOADEOYE:
That is the whole point of this move by Dangote.

It is now a d*ck measuring contest.

How low can you go.

This is Dangote's style. Charge a premium as the sole player in the field. Drive down the price when competition enters to kill off competition.

If NNPC goes lower, Dangote will go even lower.

At this rate, NNPC should just jejely mind their small market and leave Dnagote alone....otherwise....PH will go back to limbo real soon

Dangote cannot drive nnpc out of this business. Instead it is the other way round.


Nnpc has been subsidizing products since they became limited and still be returning profits in billions.

If it is war he wants, nnpc is equal to the task and with refineries in North and south, they have the fields to themselves


Port hsroucrt will servixe all they way to middle belt. Warri all the way to South West states close to them

Kaduna core northern states

Zetty177x:
It was #85 before remember B0z0?

Do your own and sell 85 naa, who is stopping you

You also forgot to mention dollar being at 150naira then
+Addition of subsidy

Oga rest

airsaylongcome:
Is Dangote encouraging regular people/businesses to buy 2m litres of highly flammable PMS? Where wi they store it?

The verbiage on the ad sounds like they are targeting end users rather than the normal middlemen

Can you go to coca cola plant and buy 1 bottle of coke for 200naira each

Can you go to indomie plant and buy 1 packet of belle full for 700naira each?

nlfpmod:
Check out Dangote Petrol Advert.

An affordable product needs no advert. This is a testament to exorbitant price of dangote petrol

Tonytonex:
that's 2 billion Naira with logistics. How many people can afford 2 billion Naira minimum purchase? That's why NNPC was the one doing it

Marketers will easily do this nau,
They'd buy shipload, take to their tank farm and sell to people in bits buying truckloads.
N2B is nothing to them.

nlfpmod:
Check out Dangote Petrol Advert.

ok
After buying 1m litres howmuch dem go come sell 1 litre?

EMIOMOADEOYE:
How many regular people do you know that buy 2 million liters in one trade.

Even if you have 5 filling stations you cannot buy 2 million liters in one go. This is clearly not for small fries

Filling station no dey go refinery to buy,
Marketers exist for this reason.
Na for Marketers hand filling station dey buy.

Themandator:
Dangote cannot drive nnpc out of this business. Instead it is the other way round.


Nnpc has been subsidizing products since they became limited and still be returning profits in billions.

If it is war he wants, nnpc is equal to the task and with refineries in North and south, they have the fields to themselves


Port hsroucrt will servixe all they way to middle belt. Warri all the way to South West states close to them

Kaduna core northern states

Larger ,newer and more efficient single train refinery will produce cheaper than multiple small capacities scattered in different locations.
The only reason NNPC will flog dangote Hands down is that they OWN THE RAW MATERIAL(CRUDE)!
They'd sell it to themselves for chicken money and in naira and use that advantage to overrun dangote price wise.
But Dangote can also afford to leave local market to them and kiss Vitol and Trafigura ass and those ones when them see say NNPC Don handicap am for local market,them go price am 400naira/litre

AntiChristian:
And you will keep living till year 3000!

Unfortunately, its not in your hands to decide

1billion 940 million that's 2million litres...some people get money oo

this price is not coming back to 600 naira again

SeaTrade:
Larger ,newer and more efficient single train refinery will produce cheaper than multiple small capacities scattered in different locations.
The only reason NNPC will flog dangote Hands down is that they OWN THE RAW MATERIAL(CRUDE)!
They'd sell it to themselves for chicken money and in naira and use that advantage to overrun dangote price wise.
But Dangote can also afford to leave local market to them and kiss Vitol and Trafigura ass and those ones when them see say NNPC Don handicap am for local market,them go price am 400naira/litre

Pms has a standard price whether produced from modular refineries or largest in the world unless you are a monopoly in your marketplace.


NNPC has been in the business of subsidizing petroleum products for ages and still returning profits to stakeholders.



Nnpc limited is not just nnpc retails... Their business looong and vast



With their multiple refineries, they can send Dangote packing... 2 in the south south and 1 up north... Before you truck from lagos to the north the person up their would prefer to buy from the nearest point for his own good


A truck of Pms is over 50m. Adding transport it gets close 51 plus and without Aquila, the man in Markudi will choose return of capital over return on capital

SeaTrade:
Marketers will easily do this nau,
They'd buy shipload, take to their tank farm and sell to people in bits buying truckloads.
N2B is nothing to them.

abi? Well, there are levels to this things.

Zulum:
1billion 940 million that's 2million litres...some people get money oo

Omo! Money dey this oil business now oh . That's why everywhere new new fueling stations are opening.

Fearurcreeator:
Na your papa dey sell am then na , afofun

Na the money my papa take carry ur mama then na...u forget?

Zetty177x:
Na the money my papa take carry ur mama then na...u forget?

You go soon enter market

IJEYdiamond:
If pertrol cant go back to #200... maximum 400..

Let them all gettttttttt out!!!!!!!

You can import your own and sell at that price

They'll soon deny it.

Olaide1295:
Beauty of a free market system.

nothing beautiful with Monopoly.

Themandator:
Pms has a standard price whether produced from modular refineries or largest in the world unless you are a monopoly in your marketplace.


NNPC has been in the business of subsidizing petroleum products for ages and still returning profits to stakeholders.



Nnpc limited is not just nnpc retails... Their business looong and vast



With their multiple refineries, they can send Dangote packing... 2 in the south south and 1 up north... Before you truck from lagos to the north the person up their would prefer to buy from the nearest point for his own good


A truck of Pms is over 50m. Adding transport it gets close 51 plus and without Aquila, the man in Markudi will choose return of capital over return on capital

nothing concern standard price and big buyers bros,
Even crude oil,them dey discount am.

You seem to think Dangote's target market is filling stations.No.
At 970/litre and 1040 NNPC is currently selling,
Difference is at 70naira/litre.
Multiply this by a major marketer buying 50million litres at a go,that's 3.5b naira worth of marginal difference,
Marketer go use ship move am to his tank farm in calabar for 1billion,save 2.5b ,then sell to small people that was suppose to pay for truck and bear risk to go to PH from calabar to buy at 1040 at the same 1040,Dangote wins.
That's how refining works,Marketers and not chewing gum filling station owners.
And I'm sure the guy buying 50m litres will still get more discount.
The only place NNPC go beat dangote na raw material price and guarantee supply,nothing again.

slimthugchimee2:
Can you go to coca cola plant and buy 1 bottle of coke for 200naira each

Can you go to indomie plant and buy 1 packet of belle full for 700naira each?

No. But Coca-Cola or Indomie will not advertise the price they sell to their dealers like the way Dangote has done. They will also not be using language like "For your satisfaction..." when advertising to wholesalers/retailers. Dangote ad has said: "High quality Petrol for your Vehicle & Engine and also good for the Environment". These aren't words targeted at wholesalers/retailers. No wholesaler buys a product "....for the environment". They buy it purely for business. Only end users like those kind of feel good nonsense

TheOldGods:
Nnpcc shouldr release their own at 900, let the competition begin

NNPC own from PH refinery is said to be 1,045 Naira. 75 Naira higher than Dangote price

AntiChristian:


Some will still say Dangote is not selling anything!

Those who believed Buhari was cloned as Jibril El Sudani!

Tinubu is Amoda Ogunlere!

People's eyes dey see things o!

Billionaire Rabiu aka BUA too would join later!
Other refineries too will join!

Then team Nigeria will keep winning!
Team overseas refineries will lose forever!

no be APC still get dem maltese refineries? agbado sense...who is fooling who!

AntiChristian:
Face front! Na Dangote matter dey here for Nigeria!

I no be from Lebanon meshionu!

Let's see the petrol first. All these are noise.

Eboofa:
no be APC still get dem maltese refineries? agbado sense...who is fooling who!

Show us APC names on their receipts?

uniquelyspecial:
Unfortunately, its not in your hands to decide

Is it now in your hands to make the claim you made earlier?

It's clear you won't be alive till 3000!

airsaylongcome:
No. But Coca-Cola or Indomie will not advertise the price they sell to their dealers like the way Dangote has done. They will also not be using language like "For your satisfaction..." when advertising to wholesalers/retailers. Dangote ad has said: "High quality Petrol for your Vehicle & Engine and also good for the Environment". These aren't words targeted at wholesalers/retailers. No wholesaler buys a product "....for the environment". They buy it purely for business. Only end users like those kind of feel good nonsense

Lol every big company literally does this
Also since NNPC refinery is now online, they want to advertise more to marketers to tell them how good their product is and also cheaper than NNPC own, so they would want to buy their own

It's a pattern of free market
Just because you saw an Advert doesn't mean it's targeted towards you my guy

SeaTrade:
Filling station no dey go refinery to buy,
Marketers exist for this reason.
Na for Marketers hand filling station dey buy.

there are so many processes sha. E get many things wey people no know

SeaTrade:
nothing concern standard price and big buyers bros,
Even crude oil,them dey discount am.

You seem to think Dangote's target market is filling stations.No.
At 970/litre and 1040 NNPC is currently selling,
Difference is at 70naira/litre.
Multiply this by a major marketer buying 50million litres at a go,that's 3.5b naira worth of marginal difference,
Marketer go use ship move am to his tank farm in calabar for 1billion,save 2.5b ,then sell to small people that was suppose to pay for truck and bear risk to go to PH from calabar to buy at 1040 at the same 1040,Dangote wins.
That's how refining works,Marketers and not chewing gum filling station owners.
And I'm sure the guy buying 50m litres will still get more discount.
The only place NNPC go beat dangote na raw material price and guarantee supply,nothing again.

There is hardly any depot in Nigeria that has a storage for more than 1500mt... Hardly..... The calabar you mentioned there is none close to 50m and none in Warri.


The ones close to such capacity is closed like capital.....


That is by the way, nnpc price is not static.

Dangote first claimed it price was determined by nnpc own price for her markets meaning that Dangote is in a panic mode by reviewing their price while nnpc was yet to do so.


Nnpc, like I have stated is not just nnpc retail. It is far more than that..... They are not hungry about pms market... They can wake up tomorrow and sell at 600 and ask everyone that has paid and yet to load to load at that new price and keep their balance for future retirement


NNPC is a behemoth.

Another issue you raised is that NNPC can award themselves crude in local currency which is a fallacy.

Crude are priced in dollar and paid to cbn.... Only the government can permit nnpc to sell crude to her refining business in naira just to help the naira not that it confers any advantage.....

The price is determined using the prevailing exchange rate so rather than going to source for dollar and putting pressure on the naira that will be the agent looking for the dollar it is presented as the instrument of payment


As for crude supply, it is as you make your bed. Nnpc owns the crude, not nnpc retail.

Crude allocation to local refiners are governed by laws. It is not arbitrarily done.. If Dangote has a waterproof contract for crude supply with nnpc it won't be breached without consequences but if he didn't know he was supposed to enter agreement and only realised the crude was not in the shelf pay and load business it is nobody's fault but his



Nnpc owns the market. Including owning retail outlets all over Nigeria

Themandator:
There is hardly any depot in Nigeria that has a storage for more than 1500mt... Hardly..... The calabar you mentioned there is none close to 50m and none in Warri.


The ones close to such capacity is closed like capital.....


That is by the way, nnpc price is not static.

Dangote first claimed it price was determined by nnpc own price for her markets meaning that Dangote is in a panic mode by reviewing their price while nnpc was yet to do so.


Nnpc, like I have stated is not just nnpc retail. It is far more than that..... They are not hungry about pms market... They can wake up tomorrow and sell at 600 and ask everyone that has paid and yet to load to load at that new price and keep their balance for future retirement


NNPC is a behemoth.

Another issue you raised is that NNPC can award themselves crude in local currency which is a fallacy.

Crude are priced in dollar and paid to cbn.... Only the government can permit nnpc to sell crude to her refining business in naira just to help the naira not that it confers any advantage.....

The price is determined using the prevailing exchange rate so rather than going to source for dollar and putting pressure on the naira that will be the agent looking for the dollar it is presented as the instrument of payment


As for crude supply, it is as you make your bed. Nnpc owns the crude, not nnpc retail.

Crude allocation to local refiners are governed by laws. It is not arbitrarily done.. If Dangote has a waterproof contract for crude supply with nnpc it won't be breached without consequences but if he didn't know he was supposed to enter agreement and only realised the crude was not in the shelf pay and load business it is nobody's fault but his



Nnpc owns the market. Including owning retail outlets all over Nigeria

A quick Google search will easily disprove this claim,
Pinnacle alone in Lagos has about 100,000Mt holding capacity,
What will the likes of MRS and Co have?
You seem not to know the difference between MT and litres.

Dangote was waiting for NNPC to determine pricepoint only because they were to be the sole offtakers of petroleum products from his refinery for local market before their deal collapsed and not because he was holding for NNPC for competitive reasons.This is naive.

Oh yes,NNPC price isn't static but can't be as dynamic as someone producing as over 1000% more capacity,Dangote can go way lower than they can if it comes to price war.

If they wake up and sell at 600/litre without ant economics backing it then it's only a matter of time before they go moribund again and leave the entire market for Dangote.

Crude isn't priced for local markets at international prices anywhere in the world,this is highly uninformed.

You're a bit too excited about nomenclature too,
NNPC is one body that can align all subsidiaries to achieve a common goal,like selling raw materials at discounted rates to its subsidiary.
The government has no say in this except to wait for remittance from NNPC Corp.

Dangote will clearly win this fight,it'll only take time...
End.