₦airaland Forum

I understood your point my brother but the truth is these people are making more than enough in their business...I have a friend who is a marketer and distributor...I don't really like talking about these so called marketers...

LZAA:
I'm not defending these middlemen but...
These men take massive loans from banks and other sources to run their businesses
Throw in expenses and taxes then you'll see that the "profit" is quite marginal
On the monopoly thing by Dangote i definitely agree with them
He should seek collaboration because eventually if he has his way....
Ibeto and Co can explain better

WantsandMore:
you gradually crash a product price to avoid volatility and deflation

Same way he crashed petrol price as promised by him na

We Nigerians are Nigeria problem

erniok:
Jumped into a convo and had a wonderful opinion. How smart!!!

You are not a gas marketer, everytime chochocho, you kids are paid saboteurs... otherwise I don't see any reasonable human being who will be angry at lower prices, that is the beauty of a free market, if you can't compete, go home.

FreeIgboho:
Dangote better be careful. This is the kind of thing that has Bill Gates in trouble in certain quarters - crashing people's means of livelihood by donating it for free!

What’s about the massive buying at high prices for the sake of some few marketers

yemre:
Bros, you are such a very smart guy!

The marketers are free to step up their game by building a refinery and competing with Dangote. How do you tell someone not come into the business or not to sell at the price that is profitable to him while also affordable to the consumers. It is a capitalist economy and the earlier the players accepts that, the better for them.

I just don't understand what is wrong with our people. Before Dangote started refining petroleum products, they would always tell us about the landing cost going up every time. Suddenly now that has changed because they could no longer sell that narrative. Dangote should be allowed to invest in LPG and allow people to sell freely.

Of course you would not expect me to come and buy from you if your product is more expensive than that of Dangote. A word, they say, is enough for the wise

They do not need to setup refineries to complete. All the gas flares in the Niger Delta are at least 10% LPG. So they should set up gas refrigeration and separation plants, the cost foot print is way less than Dangotes.

Taich:
This headline has many hidden meanings. Like Dangote or hate him, the masses are the ones being played here. Dangote came into the Cementing sector, we all other players were pushed out. We know how the price of cement went. Dangote business model is market disruption at errant, then monopoly and finally the masses pay massively for the only supplier.

I have people thinking my statement lacked facts, Dangote and Ibeto has been in and out of court over cement, Dangote and BUA has issues over sugar.
Dangote cement is one of the priciest in the market. These are facts, Dangote business model end game is monopoly.

Is it only dangote that's allowed to have a refinery?....No.
We need more of dangotes to come into the sector...for a competitive and good level playing ground.
More so, if you can't afford Dangote cement go for Bua or ibeto...the more the players the more the price competition.
Factual example is the telecommunications sector...if you dont want mtn you can port to glo,aiirtel etc

[quote author=FreeIgboho post=136117206]The president is one of the marketers [/quote

Can you see now, when he also die they will also want us to say good about him when he actually did bad for the Masses.

Less talk, more action.
Dangote should do the needful.
Crash the price first and wait for the subsequent consequent response.
When that happens, case dismissed!

May d marketers failed woefully.

AfonjaPriest:
Less talk, more action.
Dangote should do the needful.
Crash the price first and wait for the subsequent consequent response.
When that happens, case dismissed!

He has crashed his price since to 800/900 but retailers refused to bring it down.

adenigga:
President of the Dangote Group, Alhaji Aliko Dangote, has announced plans to reduce the price of Liquefied Petroleum Gas, also known as cooking gas. He also promised to start direct sales of the product to consumers should the existing distributors fail to allow the price crash in cooking gas.

However, operators in the sector have disagreed with the plan, saying the businessman was planning to monopolise the LPG sector. They kicked against the move on Monday, as the dealers expressed fear of a possible monopoly.

Speaking during a recent tour of his refinery by some local and foreign guests, Dangote stressed that the current price of cooking gas is expensive and not affordable for the common people who depend on firewood for cooking.

He disclosed that the refinery now produces 22,000 tonnes of LPG daily and it is ramping up production for distribution into the Nigerian market, especially as Nigerians move towards the use of gas for cooking.

Speaking to members of the Lagos Business School CGEO Africa, at the refinery in Lekki, Dangote said, “The one that we didn’t write, which you must have seen, is LPG. Currently, we do LPG of about 2,000 tonnes per day. You know Nigeria is gradually moving to the usage of LPG. But I believe it is expensive, but right now we’re trying to bring down the price and make it cheaper.”

Dangote warned that “if the distributors are not trying to bring it down, we’ll go directly and sell to the consumers, so that people will now transit from firewood or kerosene to LPG for cooking.”

The PUNCH recalls that Dangote plans to start the direct distribution of petrol, diesel, and aviation fuel to marketers nationwide in August, with 4,000 CNG-powered buses procured for the exercise.

Currently, the price of cooking hovers around N1,000 and N1,300 per kilogramme. Dangote said this would be brought down to ensure affordability.

Operators kick

It appears operators in the LPG market are not pleased with Dangote’s plan to disrupt the sector.


Speaking in an interview with our correspondent, the former Chairman of the LPG and Natural Gas Downstream Group of the Lagos Chamber of Commerce and Industry, Godwin Okoduwa, described the plan as monopolistic.


Okoduwa expressed concern that the billionaire businessman should recognise the fact that some investors grew the market from 70,000 metric tonnes in 2007 to over 1 million metric tonnes in 2022, saying collaboration is the way to go.

“I think it’s monopolistic. I think a market should be protected to encourage growth. The LPG industry in Nigeria grew from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022. That was done by collaboration — collaboration with the Federal Government, the NLNG, and offtakers. Everything was done in collaboration. It grew from 70,000 to 250 to 800, and now over a million,” Okoduwa said.

He stressed that growth cannot be achieved through a monopoly but through collaboration. “Today, we are just under 5kg or 6kg per capita consumption in terms of LPG. Other countries are doing much more. South Africa is doing double digits, Morocco and Tunisia are doing double digits. We can do much more.


“So, we should, as an industry and as a country, focus on how to grow the LPG industry and not allow someone (to frustrate the players). Yes, he has invested; yes, it’s a capital economy, but he should not be allowed to frustrate the players.

“There are people who have spent money, spent resources, even business and development, and someone just comes in to reap from the work that has been done. I’m sure he wouldn’t have built if there had not been an existing market. The work has been done, he should respect the market and let us grow. It shouldn’t be a zero-sum strategy. It should be collaborative,” he said.

In his recommendation, the gas expert said that though Dangote has the upper hand, he should embrace collaboration.

“My advice to him is that the pie can be bigger. The Nigerian market is about 1.3 million tonnes. The Nigerian LPG market can be 5 million tonnes. He should work towards collaboration rather than competition, because at the end of the day, everybody benefits,” he added.

Told that Dangote’s major concern is to bring the price of cooking gas to a rate where everybody can afford it and stop cooking with firewood, Okoduwa retorted, “I have news for him. He should go to the Northeast, where you have the least consumption of LPG. He should go to the Northeast and start developing the LPG infrastructure there. I think we will tell him thank you for that.”

Similarly, the Executive Secretary/Chief Executive Officer, Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, doubted the possibility of Dangote selling gas directly to consumers or to crash the price.

“I am saying that it’s unrealistic. What is the position with PMS? Has the refinery been able to sell petrol directly to you and me into our cars at a very cheap rate?” Essien asked.
Source: https://punchng.com/Marketers-protest-as-Dangote-moves-to-crash-cooking-gas-price

This is the high-octane greed that is I often say exists in that country. Some people want deforestation to continue while they reap from the inneficiences in the LPG market space. They persistent spew out falsehoods and point to the politicians as the problem BUT a lot of people on the street level are corrupt and it has to do with individual family values from among specific groups out of the 230 million people of Nigerian citizenship. GREED and selfishness are the driving factors in this relentless hyper-inflation and the governments at ALL levels have to reign in these people engaging in sabotage and rampant profiteering along the food chain and stop being politically correct. Yes, some people invested in private LPG infrastructure BEFORE now BUT they can merge or become more innovative by getting CNG-FUELED haulage trucks to reduce their cost of operations just like Dangote Petrochemical Refinery is doing right now and will do more roll-outs of the 4000 CNG fuel trucks in August 2925.

The cost of living has to start crashing if President 'Bola Tinubu and the State Governors want to be re-elected in 2027. There's NO turning back. Period.

But you n many of your tribesmen claim the Dangote refinery was a FRAUD so he don finally shut una mouth.

Soup don done now you n your wan ga nu si.

SmartPolician:
Aliko Dangote is doing the lord's work.

Those marketers that are protesting should pool their resources together and build a refinery so they can give his refinery a run for his money.

God bless Alhaji Dangote.

chibuikejohn:
For me i like what Dangote is doing, its the only way to drive the country out of hardship. I know along the line he will monopolise the whole thing

Blockhe*d, if he becomes a monopoly it will not benefit the country because it means he can wake up and charge whatever price he likes because he has no competitor!