₦airaland Forum

tonyashburton:
So you think Nigeria is the only country Dangote is selling refined products to at the moment?

Read my post again this time slowly then go back to this your comments see if they relate ?

richard870:
Ambush pricing to discourage importation by marketers.....petrol price that shouldn't be more than 200 per litre.

If God says Nigeria will get better, it will effortlessly. For now, its simply business as usual with a different 'looting' model in the guise of subsidy removal.... what a pity!

Really, how did you come about this figure?

Petrol prices should be lower than #300.

Dangote reduce the price

efemena5050:
People always trying so hard to sound intelligent but seriously u always find loopholes due thier lack of objectivism....na wa ooo

Point out the loopholes.
Face the message

lionshare:
This is likely due to the appreciation & relative stability of the naira at the official market!

Are u saying the naira is relatively stable?

sparko1:
Really, how did you come about this figure?

Thats most likely where it will fall if the naira is pegged. The floating of the naira gave room for massive currency speculation, making the local price of petroleum products to spike

blowjohn:
Are u saying the naira is relatively stable?

Yes!

Wicked people, wicked on their people for the money they will die and leave behind for unknown people to waste.

Very insensitive.

Electric cars are COMING at full speed.

This is a Greek gift. He's trying to monopolize the market now that refineries are working.

How does this serve the end consumer?

tableshaker:
That's why competition is good

Which competition are you talking about?

Reno Omokri just shut up there before I break that your coconut head for you.


Nonsense!

So it's even on credit just for the festive period! It means it will climb up to more than N1200 after the season so as to reclaim the fraudulent profits good luck

mrvitalis:
Same. Man that doesn't sale cement or sugar cheaper to Nigerians suddenly wants to sell patrol cheaper?

Hmmm

I'm sure that he's not the only manufacturer producing cement or sugar in Nigeria. If they refuse to sell cement and sugar at cheaper prices but he wants to sell petrol at cheaper price, I don't think we should have problem with that

899 is still on the high side. Petrol should go back to 300 naira

koladata:
so he could sell it for 899 before

richard870:
Ambush pricing to discourage importation by marketers.....petrol price that shouldn't be more than 200 per litre.

If God says Nigeria will get better, it will effortlessly. For now, its simply business as usual with a different 'looting' model in the guise of subsidy removal.... what a pity!

Exactly and well said.

I have nothing else to add to this wonderful submission.

Yes Dangote get rival now

bid4rich:
A business man will always be a business man. If he sells it at N500 per litre, more people will buy from him hence more gain/profits.

I suppose the news of Port Harcourt and Kaduna refinery coming alive is pushing Dangote really hard.

The 419 filling station close to my house will still be selling at 1,180 per liter. I trust them

jazzman7711:
Excellent news.

Congratulations to Dangote.

Congratulations to Nigerians.

There is a discernible upswing about our country these days.

From world leaders storming Aso Rock to hail Jagaban, to our winning all sorts of international awards from Miss Universe to Mister International to Grammy awards.

The other day I read the price of beans has fallen dramatically.

Now Dangote has reduced fuel to 899 per litre.

ExxonMobil that has been DODGING Nigeria for the past decade or more, due to unfriendly business environment, announced a few weeks ago that they plan to invest an astonishing $10 billion in Nigeria over the next 4 years at the rate of $2.5 billion a year.

The future could be very bright…

Mumu… be using touch light to look for achievement wey no Dey.

How much was fuel before that your fellow. Mumu said shubshidi is gone ?

Wow thank you Dangote

mrvitalis:
Lmaooo subsidies oga subsidies
Browse countries without subsidies

That is not entirely correct. Some of the countries there have stopped petrol subsidy, yet their petrol is still significantly cheaper than that of Nigeria who is one of the top 10 oil producing countries in the world.

esemes256:
That is not entirely correct. Some of the countries there have stopped petrol subsidy, yet their petrol is still significantly cheaper than that of Nigeria who is one of the top 10 oil producing countries in the world.

Name one

Westman001:
I'm telling you.

You see that price can go below that. Far below but the greedy folks won't flinch.

To me this reduction is just a reaction to guilty conscience.

These folks are making x3 of their supposed profit margin. We see it among small traders in our community they sell what they bought at 200 for 500, 600 even more.

Dangote can still sell it at #500 per litre and he will still profit.

And Nigerians would just be praising them. If NEPA give them light 1 or 2 days. You'll start hearing this NEPA people try o. When it's a steady normal thing in other country or area.

I'm already seeing them saying this is commendable. Great news. Dangote did great

For context, the largest refinery in the world is the Jamnagar Refinery in Gujarat, India, with a capacity of 1.24 million BPD. As of today (19 December 2024), the current pump price of PMS in Gujarat State is ₹94.29, which is equivalent to NGN 1,739.57 (using an exchange rate of 1/18.4492).

I'm genuinely curious about your explanation of how Dangote Refinery can sell PMS at NGN 500/L while remaining profitable, especially given the $5.5 billion loan required to establish the refinery. How would they achieve this and still break even within a reasonable timeframe?

mrvitalis:
All this lambas

Petrol sells for ₦1500 - ₦1700 in Ghana, togo ,Benin and Cameroon

If dangote can produce Petrol profitably for ₦900 why does he insists on selling to Nigeria?

Lmaooo this doesn't make sense, they are not telling us the truth

Countries add tax to their petrol sales. Petrol is expensive in the UK more than the USA because of more taxes and duties.

You can check all those Ghana and etc, to see what form of taxes and duties were imposed on those petrol.

Not telling us the truth that you are saying implies you believe we are still paying subsidy. That is nonsense if you’re still believing that at this moment.

Dangote reduced his diesel just like this too when he first started. It’s all about his marketing strategy.

LegendHero:
Countries add tax to their petrol sales. Petrol is expensive in the UK more than the USA because of more taxes and duties.

You can check all those Ghana and etc, to see what form of taxes and duties were imposed on those petrol.

Not telling us the truth that you are saying implies you believe we are still paying subsidy. That is nonsense if you’re still believing that at this moment.

Dangote reduced his diesel just like this too when he first started. It’s all about his marketing strategy.

Bros I mean our West African countries oga they don't add VAT

Remember Benin republic is a duty free nation

DemonSlayer:
For context, the largest refinery in the world is the Jamnagar Refinery in Gujarat, India, with a capacity of 1.24 million BPD. As of today (19 December 2024), the current pump price of PMS in Gujarat State is ₹94.29, which is equivalent to NGN 1,739.57 (using an exchange rate of 1/18.4492).

I'm genuinely curious about your explanation of how Dangote Refinery can sell PMS at NGN 500/L while remaining profitable, especially given the $5.5 billion loan required to establish the refinery. How would they achieve this and still break even within a reasonable timeframe?

What you are seeing in India is more about taxes and other duties.

Below is the breakdown.

Breakdown of Petrol Price in Gujarat (Converted to Naira, ₦)

Taxes (₦705.21 total)
—Excise Duty: ₦363.78 (₹19.90 × 18.27)
—VAT: ₦288.56 (₹15.79 × 18.27)
—Cess: ₦52.87 (₹2.93 × 18.27)

Other Components
—Dealer Price: ₦1,047.41 (₹57.35 × 18.27)
—Dealer Commission: ₦71.06 (₹3.89 × 18.27)

Total Price of Petrol (Retail Selling Price)
₦1,771.25 per liter (₹96.93 × 18.27)

tisriley:
Commendable

Commendablefuel for #899, imagine dey try.

mrvitalis:
Bros I mean our West African countries oga they don't add VAT

Remember Benin republic is a duty free nation

Read this report about how Ghana price their petrol. 40% of that is due to taxes, levies, and margins.

So before you compare prices of petrol in Ghana and Nigeria, you have to check the underlying taxes coz that is what matters.

Petrol is expensive in UK than USA for the same taxes reason.

https://theconversation.com/a-beginners-guide-to-petroleum-pricing-in-ghana-179402

Dangote is Santa Claus.

mrvitalis:
Name one

Well, I did a quick research and the only country on the screenshot that has largely removed fuel subsidy is Lebanon and their petrol is about 1,229 naira per litre when converted. So you are correct on the subsidy thing.
However, the standard of living in Nigeria is still a far cry from what obtains in oil producing countries worldwide. The people need to benefit in some way from the wealth being generated from crude oil.

Nobody should trust a monopolist. NNPC and Dangote were engaged in price gouging.

But then, the value of the Naira has been decimated by the APC government. Dangote is actually doing us a favour by selling at ₦899 per litre. Between the refinery and the marketers, the spread is ₦40 per litre. He can push volume into the market, everybody but the consumers will be happy unfortunately with the so called price reduction.
Subsidy is finally gone.

esemes256:
Well, I did a quick research and the only country on the screenshot that has largely removed fuel subsidy is Lebanon and their petrol is about 1,229 naira per litre when converted. So you are correct on the subsidy thing.
However, the standard of living in Nigeria is still a far cry from what obtains in oil producing countries worldwide. The people need to benefit in some way from the wealth being generated from crude oil.

Petrol is a standard price commodity doesn't care if you re poor or rich

iwaeda:
https://dailytrust.com/breaking-dangote-slashes-petrol-price-to-n899-per-litre/

Dangote Refinery-is Compelling the Moribund NNPC ,to be Productive, Transparent and Accountable,unlike before now
Alhaji Dangote,can still set the bar low to N600- per litre and still make his Billions here because by so doing,over 200Millios NIGERIANS will have more Trust in Dangote Refinery and Other Refineries - will have no choice than to follow the Baseline.
Welldone,Dangote Refinery!