₦airaland Forum

Obaaderemi2:
We like to deceive ourselves in this country. A liter of petrol in Saudi is about 900 naira. Saudi is the largest producer and the people don't actually pay tax. So how can a liter of petrol be #400 in Nigeria at a time when debt payment was choking us?

Does Saudi Arabia use the naira?

What is the minimum wage in Saudi Arabia?

Ok









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Mandate1:
I'm still surprised you think Dangote can unilaterally fix the price of petrol without govt intervention. Whatever price he's selling today has the handwriting of the govt in it.

People are actually too politically un-savvy to see that election is already coming. Tinubu had between now and December to convince Nigerians on whatever economic magic he's performing.

My brother, I had to login because of you.

Only you understand what's going on. It's all political gimmicks. It's a preparation for 2027. Only few people had this insights of yours.

Bobloco:
Just accept that this is way beyond your mental capacity to comprehend

As e no pass your mental capacity, make your Papa go contest naw

EXOUSIAng:
Jagaban na weyrey.
Now Obidients will understand what it means to let market forces control price.

In a few years we will have more refineries and they will be scrambling for supply, prices will crash.

He truly removed subsidy to protect the future of our children


Na them be this.....

This donkey thinks anyone who has a different opinion is Yoruba.
Your hate for the Yoruba tribe has ruptured your brain. If we check your location now, you will be in one of the south western states jumping bus to do something evil so you can go back to the village and south Odogwu in December.
Animals

It is the same way yorubas here on this forum attack ibos too.

The mods on this platform are not doing enough to curtail all these here on the forum

Mandate1:
I'm still surprised you think Dangote can unilaterally fix the price of petrol without govt intervention. Whatever price he's selling today has the handwriting of the govt in it.

People are actually too politically un-savvy to see that election is already coming. Tinubu had between now and December to convince Nigerians on whatever economic magic he's performing.

I love constructive criticism and I'm learning from it.

Big thanks for this

ivandragon:
When minimum wage was N30,000, PMS was about N190... so if it rises to N400, which is more than twice the previous cost, why should the minimum wage go back to N30,000?

On forex, that is agreed. It should not be above N700. Mind you, that is also almost double what it was when minimum wage was N30,000.00

The N190 per litre was a result of subsidy, so let's calculate without subsidy.
One barrel of crude is 159 litres (45% petrol) i.e 159*0.45=71.55 litres.
This means that a barrel of crude gives 71.55 litres of petrol when refined.
Now, Nigerian Bonny Light Crude is around $73.28 as of March 11, 2025.
Let's calculate using the crude to petrol of 71.55/barrel
Solution
Price of crude per barrel multiplying the percentage of petrol is
$73.28*0.45=$32.976
Then, dividing the petrol volume derived by the number of litres
$32.976/71.55 litres =$0.4609/litre as the average cost of production.
Converting dollars to naira using N700/$
$0.4609/litre * N700/$=N322.63/litre.
This means that the average cost of refining petrol is N322.63 per litre.
Note: Oil refineries usually buy crude with future and forward contracts, so the production cost might be lower.
The same applies to forex.

UncleJJ:
Why una like to dey like to deceive una self?, The Almajiri , Dangote is the only nationalist in this rigged game

Pro-Tinubu, and Pro-Obi think alike.

Tinubu is the minister of petroleum. He has done nothing, than fight tooth and nail to prevent Dangote Refinery from coming online. He is still fighting, although cowardly.

Dangote's & Nigerian's like it or not owe their thanks to Buhari, the former Minister of Petroleum who signed the PIB - that gave Dangote the courage to move forward.

NNPC, and all its subsidiaries take orders from Tinubu.



perfidious westerners >: :

You small people are a problem in this country.
The same Tinubu who Dangote said was the person who gave him the idea for the Refinery, the same Tinubu who Dangote on several occasions has openly stated how grateful he is to him.... You sit in your cave and assume trash.
Tinubu is trying to get rid of the cabal, The same cabal who have been fighting Dangs. You come and said Tinubu is fighting Dangote....
Anything to create enmity you people put head inside. Even when the story lacks any form of sense....

What's the game plan?

All of them no what deir doing... Even dangote is also playing games of chase with Nigeria

lionshare:
Let the competition continue—Dangote should eliminate all these importers by dropping the price to N650. That way, the importers will have no choice but to buy from him until it becomes cheaper to import.

Gboss247:
The N190 per litre was a result of subsidy, so let's calculate without subsidy.
One barrel of crude is 159 litres (45% petrol) i.e 159*0.45=71.55 litres.
This means that a barrel of crude gives 71.55 litres of petrol when refined.
Now, Nigerian Bonny Light Crude is around $73.28 as of March 11, 2025.
Let's calculate using the crude to petrol of 71.55/barrel
Solution
Price of crude per barrel multiplying the percentage of petrol is
$73.28*0.45=$32.976
Then, dividing the petrol volume derived by the number of litres
$32.976/71.55 litres =$0.4609/litre as the average cost of production.
Converting dollars to naira using N700/$
$0.4609/litre * N700/$=N322.63/litre.
This means that the average cost of refining petrol is N322.63 per litre.
Note: Oil refineries usually buy crude with future and forward contracts, so the production cost might be lower.
The same applies to forex.

So, how has your analysis invalidated my position that PMS should be sold for not more than N400 given the present socio-economic realities?

Let this war continue till price gets to N250 per liter

Dangote is a greedy capitalist. However, i think importation of fuel should not be stopped even when other refineries come to play. Look at the case of agriculture, where our farmers and other actors increased prices just because border was closed.

BrightFuture48:
Exactly but for greediness and selfishness he decided to be selling fuel above what is normal.

We all rejoice when is refinery is coming on stream thinking that it will lessen the price because that would have eliminate the overhead land cost but he choose to be selling his fuel above 1k initially. This is part what prompted FG to resume import fuel to break the monopoly and God bless them for it.

Like you said, selling for 650 or less would have discouraged fuel importing totally but his greediness and capitalist intent wouldn't allow him, just want to milk people dry. I pray more refinery or modular refinery come on stream to challenge his Monopoly, that will be absolute better for we masses. Imagine having only MTN as only license telecom carrier, you will agree with me, many wouldn't have be able to afford even Sim card or phone by now. I pray FG get it right in downstream sector also.

i think you are missing something and your opinion is a bit illogical. No offence.

Do you realise that the reason why Dangote is reducing the price of petrol is because of competition from importers?

In otherwords, if Tinubu was working for the Dangote, why cant he just stop fuel importation since this importers are already spoiling business for Dangote.

Dangote is as bad as the importers. They are all greedy business men who want to extort the masses with inflated price

EXOUSIAng:
You small people are a problem in this country.
The same Tinubu who Dangote said was the person who gave him the idea for the Refinery, the same Tinubu who Dangote on several occasions has openly stated how grateful he is to him.... You sit in your cave and assume trash.
Tinubu is trying to get rid of the cabal, The same cabal who have been fighting Dangs. You come and said Tinubu is fighting Dangote....
Anything to create enmity you people put head inside. Even when the story lacks any form of sense....

Bro i dont understand your point. I dont know how dangote is a Nationalist. Pls explain

EXOUSIAng:
You small people are a problem in this country.
The same Tinubu who Dangote said was the person who gave him the idea for the Refinery, the same Tinubu who Dangote on several occasions has openly stated how grateful he is to him.... You sit in your cave and assume trash.
Tinubu is trying to get rid of the cabal, The same cabal who have been fighting Dangs. You come and said Tinubu is fighting Dangote....
Anything to create enmity you people put head inside. Even when the story lacks any form of sense....

why are u comparing saudi currency and nigeria naira? are both economies the same? na wa o

Obaaderemi2:
We like to deceive ourselves in this country. A liter of petrol in Saudi is about 900 naira. Saudi is the largest producer and the people don't actually pay tax. So how can a liter of petrol be #400 in Nigeria at a time when debt payment was choking us?

do u understand what u saying. why should importation end? I DONT GET U.
You seen clearly how fuel importers are forcing dangote to reduce fuel yet you say that importation should be stopped? Na wa for u o.

look at the price of cement. Do you know that if the borders where opened prices would have gone down? also look at what our farmes and other agribusiness actors are doing. they increased prices because border was closed.

dipoley2k:
This thing should just drop to N100..competition should be amongst local refiners...let this import stress just disappear

ivandragon:
So, how has your analysis invalidated my position that PMS should be sold for not more than N400 given the present socio-economic realities?

I have the conditions of how petrol can be sold for N400 per litre using N700/$ as the forex but not with today's forex of N1,550/$ where the average cost of refining is expected around N750 to N800.
The forex rate of N700/$ will only be achieved if the CBN reduces the money supply by reducing the minimum wage because that is the number factor behind inflation in Nigeria.

lionshare:
Eliminating, in that context, means selling way below the landing cost of imported petrol, not eliminating imports. It’s a deregulated market; everyone should have access.

Then good for everyone

Gboss247:
I have the conditions of how petrol can be sold for N400 per litre using N700/$ as the forex but not with today's forex of N1,550/$ where the average cost of refining is expected around N750 to N800.
The forex rate of N700/$ will only be achieved if the CBN reduces the money supply by reducing the minimum wage because that is the number factor behind inflation in Nigeria.

Why does minimum wage need to be reduced?

Your calculation shows an increase of over 100% of pms to arrive at about N400 per litre from what it was in 2022/2023.

Minimum wage has increased by about 100% too from what it was in 2022/2023.

Again, I ask, why does minimum wage need to reduce to achieve pms at N400?

Bobloco:
The excitement and euphoria of being sworn in as Nigeria's president overtook Tinubu’s reasoning, which led him to make that thoughtless statement: 'subsidy is gone.'

That thoughtless statement, followed by the floating of the naira, brought untold hardships on Nigerians, and this country will never recover from it.

Subsidy removal was supposed to be a gradual process, ensuring first that our refineries were operational and implementing measures to mitigate its effects on Nigerians.

There was no justification for the price of petrol to rise from below ₦200 to over ₦1,350 per liter in such a short time.

It was pure wickedness and draconian by the Tinubu regime in the way it handled the subsidy removal and floating of the naira.

If Dangote Refinery and other refineries were operational before the subsidy removal, the price of petrol wouldn't have gone beyond ₦400 per liter, and transportation costs, food prices, goods, and services wouldn’t have skyrocketed to the extent that they have

Subsidy removal on energy wasn’t the cause of the significant price increases, it’s the subsidy that was removed from forex that caused the price increases. If you want to have cheaper fuel, then we need to work on fixing our forex crisis and get the naira to its main value.

Don't mind the Imp

Bobloco:
Does Saudi Arabia use the naira?

What is the minimum wage in Saudi Arabia?

200 or nothing

Take this for free Tinubu have nothing to do with pump price reduction, but has everything to do with the price increase. All these price reductions we see by the Dangote refinery is as a result of competing with the NNPC. It's funny how a private refinery sells fuel at a lower price compared to NNPC

Great development. We love to see this.

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seunowa:
You are very wrong, the Nigeria oil and gas sector was heavily regulated before Tinubu assumed office. But immediately Tinubu assumed responsibility and made a pronouncement that subsidy was gone. Deregulation began and structural policies were instituted to ensure its sustainability. [b]If subsidy is still sustained, dangote refinery and other refineries will never come to live. [/b]Governments before Tinubu weren't courageous enough remove subsidy. Buhari government mooted on removing subsidy but lacked the audacity to do so. Subsidy removal beget deregulation. Deregulation gave rise to competition. And here is the result, price war among various stakeholders.And no sensible investors will put his money into oil and gas sector shrouded with opaque operations.
I think he took a painful and courageous steps but in the long run, Nigerians will sing songs of joy. Tinubu has not been perfect but he has been making some good initiatives. If these are sustained especially in the area of achieving crude oil production of 2.5million barrel per day. This will help to stabilize the forex market to achieve liquidity and value of currency will appreciate significantly.
Tinubu is also doing greatly in the agricultural sector and if the tax reform bills are eventually passed, I think, these will augment the confidence of the investors. Nigeria is on the path of economic prosperity.

Lol ! if you know the meaning of subsidy you wont even opine Subsidy will negate the existence of a Refinery thats wrong

Across the world govt subsidizies basic sector for her people, Subsidy is demonized in Nigeria becos it a corruption haven for polithieficians and oil workers

Dangote refinery can still work under a transparent subsidy approach ... it doesnt negate dangote profit e.g as dangote sells at 830 per litre govt can offer 330 on a litre as subsidy and these can be extended to all supplier across the country ... But corruption is why Subsidy is not feasible in Nig.

I insist the true competition is not here yet, local product vs foreign rival product thats not an ideal competition, until we have another functional refinery vs Dangote thats the ideal competition that is viable to the economy and Nigerians, thats a competition fair to all players

Their is nothing courageous about a decision that was not probably thought thru and no contingencies plan at all .... for those who have a deep insight Nigerians are at the mercy of "Forex" as long as naira remains valueless Nigerians cant feel the true impact of local refineries

i campaigned and voted for Tinubu, But truth be told Tinubu policies never yield any impact, no growth no improvement as seen

sayittome:
why are u comparing saudi currency and nigeria naira? are both economies the same? na wa o

Where's the comparison between Saudi currency and Nigerian naira in my post?

Bobloco:
Does Saudi Arabia use the naira?

What is the minimum wage in Saudi Arabia?

Where did I say Saudi uses naira?

2RightHands1Coc:
Don't mind the Imp

The discussion is above your empty head.

BrightFuture48:
Thank God, NNPCL is there checkmate him till more refinery is built in the country. I just pray he shouldn't get the chance to lobby FG to implement policy that will favour is monopolistic agenda.

Always wailing about Dangote's business policies, at least he create jobs.
Set up your own business and make whatever decision you like, just create jobs in the process.

DeOTR:
So Dangote will sell petrol at N192 or do you want the FG to pay him subsidies too? How you think the refinery will be operational without subsidy removal or payment is what is beyond me, because every right thinking person knows he can't sell at the subsidized price and stay in business.

*yawns*

Bobloco:
It has absolutely nothing to do with courage. It is a lack of planning and wickedness.

It is pure wickedness to subject Nigerians to such hardships.

Subsidy removal was supposed to be a gradual but sustained process.

Worldwide, that's how things are done.

I know very well that the price wasn't going to remain at ₦165 per liter; it would have risen to something around ₦400, but not over ₦1,350 in such a short time, inflicting untold hardships on Nigerians.

Subsidies that should have been removed since 1984.
Hope you're not one of those oil and gas arrangee outfits?.
Collect money from the government, supply little or nothing, buy a house at Lekki, share testimony at the church, invite pastor for house warming.
And as usual, wail and blame the government for those fighting, maiming and killing each other, at fueling stations.
Everyone is not a mumu in this country, subsidy needs to go, thank God it's gone.
Good riddance to a bad rubbish.