₦airaland Forum

Sheuns:
The purpose of government is to provide good governance to the people it govern and not make profit.

The federal government if they had a functional refinery are supposed to set aside a certain amount of crude that will cater for local consumption and has to be lower than what they sell to international markets.

That’s what Russia, Saudi Arabia and some other oil producers do.

That is just an unnecessary complication. It is better to sell at market rate and also pay your workers competitive wages. It does not make sense to sell at two rates

givedemwotowoto:
This is a rejoinder to: Petrol Price May Hit N1,800 In Nigeria- Refiners Warn

20% of global oil passes through the Strait of Hormuz. We get it.

But here are the facts:

1. Almost all of Nigeria's crude oil is sweet crude.

2. Dangote Refinery has the capacity to process 650,000 barrels of crude oil per day.

3. Nigeria's daily consumption of crude oil is 327,000 barrels per day (or 52 million liters per day).

4. This means Dangote Refinery can process 100% of Nigeria's daily consumption locally.

So for the defenders of fuel price increase, explain to us why there is fuel price increase at Nigeria's petrol stations.

Before you come with Canada argument, let me preempt you:
Most of Canada’s crude is heavy crude and almost half of the 16 refineries can’t refine heavy crude, so the crude oil needs to be exported to the U.S. for refining. Because it is exported abroad, global oil price will affect it: you export at a high price due to demand, you import at a higher price.

50% of the cost of petrol is associated with the cost of crude oil. If crude oil goes up so does petrol.

callthefred:
First, of all the 1.5m bbl we produce daily, govt only owns 60% of it. The companies who invested in oil exploration take 40%. Of the 60% like 30% had been sold by Buhari and those before him. So we basically have like 30% available for govt at all levels to share. Dangote is a private business so govt can't sell to him cheap especially when you consider bunkered Nigerians oil go as far as central African republic.

Unfortunately, this only means more cash for elections and decamping and less for governance. We've had these kind of opportunities in the past and we never made any meaning from it..OBJ sold oil at $145 for months yet we couldn't fix power our manufacturing sector. GEJ sold over $80 for months. Only Buhari with his badluck sold less than $60 for years. This is an opportunity to invest more in production but we won't, every arm of government will insist on sharing the money to steal it.

Oil prices never got to $145 under Obj. Stop the lies.

lawani:
If ships can not pass through the strait then transportation becomes more expensive and supply becomes an issue pushing up the price. Once the price of crude goes up then Nigeria's federal government will gain but consumers of PMS will have to pay more for it. Nigeria will not sell to Dangote or anybody at lower than the international price. They are not even obliged to prioritize Dangote

Pls can you come clean on these,
.these isn't clear enough, as to why the price in increasing at home

Principles of demand and supply suddenly isn't relevant anymore.

SMH.

do4luv14:
Pls can you come clean on these,
.these isn't clear enough, as to why the price in increasing at home

Crude oil like cocoa, groundnuts, coffee or cassava etc are traded internationally. Their prices are international. There might be slight variations though according to grade and etc

givedemwotowoto:
This is a rejoinder to: Petrol Price May Hit N1,800 In Nigeria- Refiners Warn

20% of global oil passes through the Strait of Hormuz. We get it.

But here are the facts:

1. Almost all of Nigeria's crude oil is sweet crude.

2. Dangote Refinery has the capacity to process 650,000 barrels of crude oil per day.

3. Nigeria's daily consumption of crude oil is 327,000 barrels per day (or 52 million liters per day).

4. This means Dangote Refinery can process 100% of Nigeria's daily consumption locally.

So for the defenders of fuel price increase, explain to us why there is fuel price increase at Nigeria's petrol stations.

Before you come with Canada argument, let me preempt you:
Most of Canada’s crude is heavy crude and almost half of the 16 refineries can’t refine heavy crude, so the crude oil needs to be exported to the U.S. for refining. Because it is exported abroad, global oil price will affect it: you export at a high price due to demand, you import at a higher price.

1: Dangote imports most of its crude and will pay the international price whether it is buying local or imported crude.
2: Dangote is a private concern.
3: Dangote refinery is sited in a free trade zone, technically it is not cited in Nigeria, it is a merchant refinery.
4: subsidy has been removed.
5: Dangote refinery is not a govt refinery.

lawani:
If you are in business, do you sell lower to your friends and family members? Then a large portion of Nigerian crude is already pledged to pay debts. Also, if you sell lower to Dangote, that is going back to subsidy again and I personally don't support that. I believe and hope hostilities in the middle east will soon end because I read American analysts on Quora saying if Iran actually closes the strait of Hormuz then it can't be reopened in less than three to seven years and pms price will at least double

Thank you for the explanation.
I was like why the PMS expensive. And maybe tinubu is greedy with this act.
But your explanation educate me more

That is capitalism. Our oil has nothing to do with the so call Hormuz. Is Nigeria getting oil from Iran? Bullshit

WAR in wat affecting Nigeria



while



SAUDI Arabia peace not affecting Nigeria





Rubbish leaders

lawani:
Would you prefer the government have no money at all or even less money? Do you think the people will gain as a result of that?

When has Nigerians ever gain more becos more money is in the purse of govt…… the evidence is clear from fuel subsidy, fx subsidy and other subsidy removal gains….. when yall want to quickly make a point u will start dropping fallacies in a hurry that doesnt apply with existing realities

If u have free food growing in your backyard….. it only makes sense to feed your family first and sell the excess food to make money that your family can use to buy other needs

. Not that u will pack all the food and sell it claiming you will make more money… money u will now use to marry multiple wives and do owanbe parties while ur family suffer

lawani:
Would you prefer the government have no money at all or even less money? Do you think the people will gain as a result of that?

But then we should have some benefits as citizens of an oil producing and oil refining country.

Initially, the excuse was that refineries were not working and we had to import refined crude, what is the excuse now

callthefred:
First, of all the 1.5m bbl we produce daily, govt only owns 60% of it. The companies who invested in oil exploration take 40%. Of the 60% like 30% had been sold by Buhari and those before him. So we basically have like 30% available for govt at all levels to share. Dangote is a private business so govt can't sell to him cheap especially when you consider bunkered Nigerians oil go as far as central African republic.

Unfortunately, this only means more cash for elections and decamping and less for governance. We've had these kind of opportunities in the past and we never made any meaning from it..OBJ sold oil at $145 for months yet we couldn't fix power our manufacturing sector. GEJ sold over $80 for months. Only Buhari with his badluck sold less than $60 for years. This is an opportunity to invest more in production but we won't, every arm of government will insist on sharing the money to steal it.

Thank you for your the wisdom

I blame Tinubu's allies who keep going to his Malta blending facility to bring into Nigeria the petrol that we don't even need. They just want to remain in business at the expense of the suffering Nigerians, including those who ushered this regime of evil into power.Nigeria would have been in total mess right now but thanks to dangote's resilience in fighting this government. When he said a top man in government owns a blending facility in Malta. Baba mellowed down and allowed dangote breathe . Wicked fellow.

Dangote can give us all we need locally, even surpass it. Without these evil marketers involvement, dangote can even sell at 600 naira and he'll never run at a loss. He can make it more by exporting petrol under the ongoing global war regime sef. Our politicians are our worst enemies. There's nothing tinubu is doing right now, which atiku will do differently. They all need to go next year or the masses keep suffering. They're all businessmen-in-politics.

There's no way marketers will increase petrol price and dangote will be looking like mumu. He too must increase his price. I wish Nigerians could protest against petrol import nationwide but I doubt. Many of them are still blinded by bigotry

Congratulations to the indigenous oil companies. Its time to smile to the bank...seplat, Obijackson,edo refinery, etc. Remember the masses through your various foundations pls🙏

cunny88:
But then we should have some benefits as citizens of an oil producing and oil refining country.

Initially, the excuse was that refineries were not working and we had to import refined crude, what is the excuse now

The only benefit is that your government can operate with one of the lowest tax to GDP ratio on Earth. They leave the economy alone without taxing it and that same benefit is what has led to the downfall of the country since the end of the first republic

lawani:
If you are in business, do you sell lower to your friends and family members? Then a large portion of Nigerian crude is already pledged to pay debts. Also, if you sell lower to Dangote, that is going back to subsidy again and I personally don't support that. I believe and hope hostilities in the middle east will soon end because I read American analysts on Quora saying if Iran actually closes the strait of Hormuz then it can't be reopened in less than three to seven years and pms price will at least double

You can't compare business with what what you own.....what you are buying with money is business while crude is what we own so there is no conspiracy theory that you will spin that will add up

lawani:
If ships can not pass through the strait then transportation becomes more expensive and supply becomes an issue pushing up the price. Once the price of crude goes up then Nigeria's federal government will gain but consumers of PMS will have to pay more for it. Nigeria will not sell to Dangote or anybody at lower than the international price. They are not even obliged to prioritize Dangote

Nonsense analysis U don talk your mind make dem clap for u

givedemwotowoto:
This is a rejoinder to: Petrol Price May Hit N1,800 In Nigeria- Refiners Warn

20% of global oil passes through the Strait of Hormuz. We get it.

But here are the facts:

1. Almost all of Nigeria's crude oil is sweet crude.

2. Dangote Refinery has the capacity to process 650,000 barrels of crude oil per day.

3. Nigeria's daily consumption of crude oil is 327,000 barrels per day (or 52 million liters per day).

4. This means Dangote Refinery can process 100% of Nigeria's daily consumption locally.

So for the defenders of fuel price increase, explain to us why there is fuel price increase at Nigeria's petrol stations.

Before you come with Canada argument, let me preempt you:
Most of Canada’s crude is heavy crude and almost half of the 16 refineries can’t refine heavy crude, so the crude oil needs to be exported to the U.S. for refining. Because it is exported abroad, global oil price will affect it: you export at a high price due to demand, you import at a higher price.

Well ,according to the PIA, the people who drill for oyel are obligated to sell it at international prices to dangote refinery . In essence it's the law

If they sell below international prices, thet would go out of business.


As summarized below, with help from Google..

Nigeria sells crude oil to the Dangote Refinery at international market prices because oil is a globally traded commodity, and upstream producers are obligated by the Petroleum Industry Act to meet domestic supply obligations at market rates. Selling below cost is not sustainable for producers, and Dangote must pay these rates to secure supplies and maintain operation, as it otherwise faces shortages and has to import,

Key reasons for international pricing include

Market Realities: As a private enterprise in a deregulated market, the refinery must pay market rates to sustain production and prevent supply disruptions.

Production Costs: Upstream producers often charge premium rates above the Brent benchmark

Supply Shortfalls: Domestic supply via the NNPC often fails to meet the 13-cargoes-per-month requirement, forcing reliance on more expensive international traders.
Regulatory Compliance: The Petroleum Industry Act requires that local refineries are supplied with crude, but not necessarily at a discount.

MrPresident1:
Absolutely nothing.

Dangote will be nationalized. It is just a matter of time

Even in Iran where they are fighting, the price of petrol is less than N60 per litre.

What they are doing to Nigerians is evil.

Iran also.has massive debt and massive smuggling of fuel thanks to their keeping it at 60 naira

Ofunaofu:
So the Tinubu-led APC regime’s priority is making more money while the people suffer, and the money isn’t even used judiciously; it gets looted and siphoned.

it is shared as rice to win elections now

Trump is a very smart man,they knew this will happen, that's why the kidnapped Maduro to control the oil,
So to hell with Iran and middle east

lawani:
If you are in business, do you sell lower to your friends and family members? Then a large portion of Nigerian crude is already pledged to pay debts. Also, if you sell lower to Dangote, that is going back to subsidy again and I personally don't support that. I believe and hope hostilities in the middle east will soon end because I read American analysts on Quora saying if Iran actually closes the strait of Hormuz then it can't be reopened in less than three to seven years and pms price will at least double

givedemwotowoto:
Nigerians consume only 327,000 barrels daily out of over 1.6 million barrels produced daily, and the government still makes huge profit.

In addition to that, government still has over 1.3 million barrels to sell to the rest of the world at the global oil price and make even bigger profits

Why must the local population pay the price of rising global prices even when their purchasing power is already very low from Tinubu’s policies?

because oil is a global commodity. Others will buy it at your low price and sell to others. Demand and supply is real not theory

givedemwotowoto:
Nigerians consume only 327,000 barrels daily out of over 1.6 million barrels produced daily, and the government still makes huge profit.

In addition to that, government still has over 1.3 million barrels to sell to the rest of the world at the global oil price and make even bigger profits

Why must the local population pay the price of rising global prices even when their purchasing power is already very low from Tinubu’s policies?

Exactly! And we can even refine locally

lawani:
It does not help business at all. Business should be separated from all that. No need for subsidies better ask for salary increase

You can't be using Nigerians welfare to make your business naw...nobody is saying you shouldn't prosper but not at the detriment of Nigerians naw abi can't we have local or modular refineries to cater for our local needs ni abi Nigerians too are your business partners....this is all about innovation

givedemwotowoto:
This is a rejoinder to: Petrol Price May Hit N1,800 In Nigeria- Refiners Warn

20% of global oil passes through the Strait of Hormuz. We get it.

But here are the facts:

1. Almost all of Nigeria's crude oil is sweet crude.

2. Dangote Refinery has the capacity to process 650,000 barrels of crude oil per day.

3. Nigeria's daily consumption of crude oil is 327,000 barrels per day (or 52 million liters per day).

4. This means Dangote Refinery can process 100% of Nigeria's daily consumption locally.

So for the defenders of fuel price increase, explain to us why there is fuel price increase at Nigeria's petrol stations.

Before you come with Canada argument, let me preempt you:
Most of Canada’s crude is heavy crude and almost half of the 16 refineries can’t refine heavy crude, so the crude oil needs to be exported to the U.S. for refining. Because it is exported abroad, global oil price will affect it: you export at a high price due to demand, you import at a higher price.

With strait of homuz constricted, crude prices soar and thus price of refined crude products. Simple.

Seems like chemical they will mix with d crude oil, pass tru dat channel

Greencloud:
This is the consequence of leaving the entire economy to Dangote

when it wasn't in dangote hand what was different. Think before you talk

Mrtaye:
You can't be using Nigerians welfare to make your business naw...nobody is saying you shouldn't prosper but not at the detriment of Nigerians naw abi can't we have local or modular refineries to cater for our local needs ni abi Nigerians to are your business partners....this is all about innovation

So if you were running a business, would you let Nigerians set your prices or would you set the prices that enable you to pay taxes and meet your daily needs and replenish stocks among other things?

nairalanda1:
Well ,according to the PIA, the people who drill for oyel are obligated to sell it at international prices to dangote refinery . In essence it's the law

If they sell below international prices, thet would go out of business.


As summarized below, with help from Google..

Out of 1.6 million barrels of oil daily production, going by 60 - 40 arrangement, Nigeria owns 960,000 barrels.

Out of 960,000 barrels, Nigerians consume only 327,000 barrels daily. Nigeria still has over 600,000 barrels they can sell to the international market at prevailing global oil prices.

It’s interesting that Nigerians who are victims of corruption are the ones looking for all possible ways to explain and excuse why the government can’t do better for them

Kelklein:
Ordinarily if we have responsible leadership who are not greedy, this shouldn't concern us..

do you know any human being that is not greedy
Do you work for less pay

But what do our leaders do.. they sell the crude in advance (how is that even legal?), now those that have the refinery to meet the urgency of now have to import their crude.. because their order request for crude locally is on the queue.

I don't understand how croóked and wićked a leadership can be.. this APC people.

why don't you go and lead let's see how you would fare

givedemwotowoto:
This is a rejoinder to: Petrol Price May Hit N1,800 In Nigeria- Refiners Warn

20% of global oil passes through the Strait of Hormuz. We get it.

But here are the facts:

1. Almost all of Nigeria's crude oil is sweet crude.

2. Dangote Refinery has the capacity to process 650,000 barrels of crude oil per day.

3. Nigeria's daily consumption of crude oil is 327,000 barrels per day (or 52 million liters per day).

4. This means Dangote Refinery can process 100% of Nigeria's daily consumption locally.

So for the defenders of fuel price increase, explain to us why there is fuel price increase at Nigeria's petrol stations.

Before you come with Canada argument, let me preempt you:
Most of Canada’s crude is heavy crude and almost half of the 16 refineries can’t refine heavy crude, so the crude oil needs to be exported to the U.S. for refining. Because it is exported abroad, global oil price will affect it: you export at a high price due to demand, you import at a higher price.

crude oil price has increased na... Are u suggesting Nigeria sell crude oil for dangote at a cheaper rate.... That's subsidy... If d government does that, d same opposition will come and complain