₦airaland Forum

lordm:
I don't understand this country o.
Dangote is exporting petrol,
Why we are importing petrol

Spreadlove8888:
The Nigerian government are not supplying enough cargo of crude oil that they have in the contract.
The contract said 13 to 15 cargo of oil monthly
But the Nigerian government supplies only 3 to 5 cargos

In other to keep the refinery fully operational, they(Dangoté) have to import crude oil from the international market.

And Dangote does not supply petrol to Nigeria only, but they also export to the regional and the international market in other to earn Forex and import crude oil that the government cannot provide.

Dotherightthing:
Nice one

Now let the competition begin

Dogalmighty17:
That's why they call it oil futures, term contracts, fixed-volume contracts, or take-or-pay agreements. If Dangote has entered contract to supply fuel to external parties, he MUST keep to the terms of that agreement.

That's how the oil industry works. You are a crude seller or a refiner. I enter contract with you to supply me crude at a price you and I think is fair but the crude should be delivered at an agreed future date. Normally, we'd calculate what we believe crude will cost at that future date based on current happenings or trends. Irrespective of how the market turns out, you will supply me crude or refined product at the price we agreed on.

lordm:
I don't understand this country o.
Dangote is exporting petrol,
Why we are importing petrol

Dotherightthing:
Nice one

Now let the competition begin

patrickcollins:
He only reduces price when others are importing fuel, that's why monopoly is not good in business.

Parachoko:
I'm never in favour of supporting total ban on importation of fuel because of our past experiences on issues like this.

What I don't understand is why the oil companies are not willing to sell to Dangote if he's ready to pay in dollars.

omoredia:
What part of Dangote refinery is being affected to reduce supply to the Nigerian markets.

Crude is local
Refinery is local
Labour is local
Market is local

Dangote should explain

gigabyte13:
At least, prices will come down, Dangote cannot hold the country hostage.
As he don enjoy sef, make him too bear the losses in whatever form in the main time, as greed wan finish am.
Crude you no dey important
You still dey carry price go heaven
Baba rest, let the country breathe.

callmeDDD:
But they never ban them before na. They still import to the best of my knowledge. Issuing new licenses does not mean they lift importation ban. It is now if you get chest put am .

Dogalmighty17:
That's why they call it oil futures, term contracts, fixed-volume contracts, or take-or-pay agreements. If Dangote has entered contract to supply fuel to external parties, he MUST keep to the terms of that agreement.

That's how the oil industry works. You are a crude seller or a refiner. I enter contract with you to supply me crude at a price you and I think is fair but the crude should be delivered at an agreed future date. Normally, we'd calculate what we believe crude will cost at that future date based on current happenings or trends. Irrespective of how the market turns out, you will supply me crude or refined product at the price we agreed on.

Parachoko:
I'm never in favour of supporting total ban on importation of fuel because of our past experiences on issues like this.

What I don't understand is why the oil companies are not willing to sell to Dangote if he's ready to pay in dollars.

lordm:
I don't understand this country o.
Dangote is exporting petrol,
Why we are importing petrol

Albertone:
Crude is local but is being sold to Dangote at global rates(global prices, insurance costs, freight charges). Exactly the amount international buyers purchase it.

Labour is local but earnings of some top level staffs matches their counterparts’ earnings internationally.

Dangote operates not only in local markets. He exports refined oil too. After all, he still imports crude and will want foreign exchange earnings.

erniok2:
Make una dey read before commenting make we no dey shame for una.

Dangote can supply the whole country but he's getting far less than the 15 barges agreed to meet demand

descartes400:
In order words, dangote refinery is saying domestic supply is not is priority!

Don't you think he should factor in domestic usage when entry into such an agreement when supplying external demands?

Now, if he has agreed to supply at a future date, a contract he must not breach and these becomes his modus operandi why neglecting domestic supply, in the both in the short and long run, this will affecting his refinery reputation in the country which will lead to government taking countermeasures just as they have done by reopening fuel importation.

lordm:
I don't understand this country o.
Dangote is exporting petrol,
Why we are importing petrol

gigabyte13:
At least, prices will come down, Dangote cannot hold the country hostage.
As he don enjoy sef, make him too bear the losses in whatever form in the main time, as greed wan finish am.
Crude you no dey important
You still dey carry price go heaven
Baba rest, let the country breathe.

Lithiumite:
It pays dangote more to export and earn dollars than sell to you in naira.....if not the naira for crude deal initiated by this govt,you would have been paying even more than you are now for petrol... Dangote is only being alarmist and that's why he musnt be allowed to have a monopoly..... Govt can't force him on how much to sell his petrol that's why govt is allowing those who have the means to import to do so they can compete with dangote.

cyberguy72:
Can u listen to yourself..at the detriment of ur foreign exchange.Importation of fuel is totally uncalled for..u re just enriching other countries.And besides these guys wud definitely import substard inferior fuel so as to make huge profit.

omoredia:
What part of Dangote refinery is being affected to reduce supply to the Nigerian markets.

Crude is local
Refinery is local
Labour is local
Market is local

Dangote should explain

gigabyte13:
At least, prices will come down, Dangote cannot hold the country hostage.
As he don enjoy sef, make him too bear the losses in whatever form in the main time, as greed wan finish am.
Crude you no dey important
You still dey carry price go heaven
Baba rest, let the country breathe.

fxexperts:
. Did you give him the so-called local crude? When he buys his crude from the US at a high price, you expect him to sell it to you cheaply at a loss. Or do you think the IOC will want to sell crude to Dangote at a very low price when they can sell it at the international market at a high cost? If you were the IOC, would you sell at the highest or the lowest price?

Your Papa give am crude? most of you people love to talk anyhow.

Dotherightthing:
Nice one

Now let the competition begin

omoredia:
Earn FX for what did he not make it look thay he was doing nigerians the biggest favour? He is a crook

gigabyte13:
Let me respect your Father, i want to believe he trained you well to respect other people's father but na you just decide to be a vagabond.
Can't you make your point without exposing your father .....??

Bobl.oco:
https://punchng.com/us-iran-war-fg-reopens-fuel-imports-dangote-reels-from-fx-losses/