Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? - Business (2)

Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? - Business (2) - Nairaland

Nairaland Forum › Nairaland General › Business › Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? (15640 Views)

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Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by AntiChristian: 6:56am On Apr 19

Why should he?

1 Like

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by TK9680: 6:58am On Apr 19

It doesn't happen overnight

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by DeltaBachelor(m): 6:59am On Apr 19

I am not in support of his policies. However, we all know it would take time to settle. He has to sell old stock

1 Like

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Reference(m): 7:05am On Apr 19

After supporting Dangote to undermine the body responsible for superintending over his activities who do you think will have the guts to ask questions.
Shebi your Vice President called him an institution. I warned about removing the safety devices around governance, whether corporate governance or public governance including the Legislature, the unions and in this case the regulators.

Nigerians are not bright at all.
Free market does not translate to free to do as you please particularly if a business is essentially a monopoly. The scrutiny should be even deeper.

Ask the likes of the domineering US tech giants for instance what they see in the hands of American, European and Asian regulators. Power comes with responsibility. More power comes with graver responsibility.

A player like Dangote should have a permanent office close to the National Assembly because the place where the economy of this country is, his company will need to answer questions on a regular basis. It is that important.

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Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by CyracksMrBlogger(m): 7:13am On Apr 19

This forum is so useless, imagine bringing this unverified blackmailing information on front page? And the users can't even read. Where did you read where the crude oil price is falling?

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Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Nwaele7(m): 7:18am On Apr 19

He wants more profit. Hence he has the only functional refinery.
So no competitors

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Bizibi(m): 7:21am On Apr 19

Ignorance stinks in the comments.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by arsenal33: 7:21am On Apr 19

Eleph:
Why are the people not even asking Tinubu and the APC why the NNPC is still not working having claimed otherwise all through last year?
What happened to the huge amount of money spent on the so-called turnaround maintenance?
Tinubu is the Minister of Petroleum as it is, if not for Dangote, I can bet we'll be buying fuel for as high as ₦2,500 per litre. The builder of Lagos State prioritized his interest in the Lagos-Calabar Coastal highway, neglecting other sectors like Power, Security, and Oil & Gas and the economy.

Kudos to Dangote for saving Nigerians in the hands of this evil government and its political party, the APC.

APC govt thru central bank supported Dangote in building the refinery. Your folks in ADC (former PDP) supported fuel importers and were never interested in helping build any refinery. So say thank you to APC.

As for turn around maintenance, all parties are guilty, abi you don forget say PDP do turn around maintenance? Under PDP (now ADC), projects were fully paid for, but hardly completed

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by PeterObash(m): 7:25am On Apr 19

Yes. Dangote is also like an example of a typical Nigerian, they quickly inflate their prices once they are crisis buh hardly reduce it once the crisis are over.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Oracleee: 7:26am On Apr 19

EnemyofGod4:
It shall not be well with Dangote,

Lol.... Instead of y'all to hold your leaders accountable, you're bluffing on a man that is well with already.

2 Likes

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by owobokiri(m): 7:27am On Apr 19

kaywhy09:
It doesn't happen so sudden at local market.

But the increase happened so sudden..

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by seanery: 7:28am On Apr 19

WEREY WAN RECOVER HIN MONEY FIRST B4 HIN CRASH THE PRICE.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by DigitWitch(m): 7:29am On Apr 19

You post a news headline that said and Quote " Petrol Prices TO crash". Has the price crash already?

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Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Bizman2024(m): 7:30am On Apr 19*

Because no importer is trying to import oil.

If he has information that one importer is bringing in oil, he will rush and reduce his price.

Without competition, either by importing or producing, Dangote will be selling at a very exorbitant price to Nigeria. He doesn't care about anyone.

1 Like

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by tgmservice: 7:37am On Apr 19

kaywhy09:
It doesn't happen so sudden at local market.

But it happens so sudden when the crude oil price increases

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by reddingtonblack: 7:39am On Apr 19

ajebuter:
I think the straith of Humoz was closed again

Nonetheless, Dangote is really cashing out of our misery

DO the calculation on his last stock in and show us how is cashing out

Shebi una get independent marketers, like mobil, total why are those ones selling cheap is it Dangote that hold them

As for the unfortunate being still supporting Tinubu, we hope you go to APC filling station its #300 per litre

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by ogolemati: 7:42am On Apr 19

chopnaira:
Which oil crashed? It is still expensive at my location abroad.

My country of residence has 16 refineries and 4th largest producer of crude oil in the world and petrol has been expensive since the senseless war in Iran.

Infact, I stopped driving my personal car for any work that takes me outside of the city and instead use the company vehicle.

you are under oshodi bridge,I thought you agbero said once dangote refinery comes up fuel will be sold at 100naira

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by BrickandLace(f): 7:43am On Apr 19

Didijiji:
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100

What this useless and clueless APC government was chorusing all through

Now we have seen oil spike over $100, they have gone dumb. We don’t know what the excess is, they removed subsidy too

NO EFFECT

Show me a more useless government

Thank you.

Defenders of the kingdom of darkness should come and explain this away.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Emeskhalifa(m): 7:43am On Apr 19

Tjra:
Na cashing out season Dangote dey.

If e reach your turn, do otherwise till your business fold and you go back to village.

1 Like

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Emeskhalifa(m): 7:46am On Apr 19

stuffs2002:
Dangote na full 100% capitalist wey like monopoly pass anything

Licenses were given to others, na Dangote dey hold their hands from building their own refineries?

3 Likes

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by femi4: 7:47am On Apr 19

Thats y hes dangote

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by princeFAD: 7:50am On Apr 19

ezekins:
One of the dangers of monopoly. He was quick to increase but hesitant to reduce it

Is it Dangote that said NNPC refineries should not work ?
Is dangote stopping others in investing in private refineries so that healthy competition will take place?

2 Likes

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by michlins(m): 7:53am On Apr 19

The physical price of crude oil is usually different from the prices you see on Google. The Saudi minister of oil explained it a few days ago. The only reason the paper market was used was because the difference between the paper and physical market was negligible. But with the current market manipulation and insider trading, the physical market doesn't follow the pattern

By the time you finish supporting Trump's recklessness, you will come back and pay for the consequences of his actions.

You can blame Tinubu all you want, Tinubu administration doesn't even care. This administration is making mad money this period and taking huge loans on top

1 Like

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by MarketDispatch: 7:54am On Apr 19

Malcolm21:
The price of crude oil has crashed internationally but why has Dangote not reduced the prices of his petroleum products? Because I noticed that when it was increased internationally he immediately increases his price but now that it's dropping why has he not followed suit

You will hear the product in his storage was refined at the high price. After selling off those products and when he gets the new products that was refined at low price, he will reduce the price.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by nairalanda1(m): 7:56am On Apr 19

Didijiji:
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100
During Jonathan Oil sold over $100

What this useless and clueless APC government was chorusing all through

Now we have seen oil spike over $100, they have gone dumb. We don’t know what the excess is, they removed subsidy too

NO EFFECT

Show me a more useless government

Yes and we also spent most of the money on subsidies

Which forced the government to also start taking loans massively to fill the gaps left by subsidy spending in the budget

Which is part of the reason why we can't have subsides

GEJ saw the light in 2011. Subsidy spending was three times that of 2010.because rising oil prices forced subsidy costs up

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by TheGoodJoe(m): 8:02am On Apr 19

nairalanda1:
Well if most of you had not supported the Ojota crowd back in 2011 , we could have had more refineries by now.

Subsides essentially made it difficult for anyone else to get into the refining business back then unless you had deep pockets like.dangote

Story. As if Dangote refinery was not built under Subsidy period. Since removal of Subsidy has any refinery sprung up? Keep pushing lies.

It is simply corruption and lack of will to produce. Simple.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by lapintoz: 8:04am On Apr 19

In the same sentence, you are contradicting yourself. Who enabled the refinery to be sited in Lagos? Who is ensuring that petroleum cabal doesn't kill the refinery. I am sure its not the agalu failure, he has no clue how to build an economy 😁😁😁

Eleph:
Why are the people not even asking Tinubu and the APC why the NNPC is still not working having claimed otherwise all through last year?
What happened to the huge amount of money spent on the so-called turnaround maintenance?
Tinubu is the Minister of Petroleum as it is, if not for Dangote, I can bet we'll be buying fuel for as high as ₦2,500 per litre. The builder of Lagos State prioritized his interest in the Lagos-Calabar Coastal highway, neglecting other sectors like Power, Security, and Oil & Gas and the economy.

Kudos to Dangote for saving Nigerians in the hands of this evil government and its political party, the APC.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by Usmanovic95(m): 8:08am On Apr 19

ogolemati:
you are under oshodi bridge,I thought you agbero said once dangote refinery comes up fuel will be sold at 100naira

See one of their post below

https://www.nairaland.com/7951609/not-japa-before-dangote-refinery

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by nairalanda1(m): 8:09am On Apr 19

TheGoodJoe:
Story. As if Dangote refinery was not built under Subsidy period. Since removal of Subsidy has any refinery sprung up? Keep pushing lies.

It is simply corruption and lack of will to produce. Simple.

Dangote was able to build his refineries under subsidy because he had a lot of other lucrative businesses

( Bear with me, I'll soon explain)

A key problem with subsidy is the price controls inherent in subsidy. That means that any bank or financial institution or investor investing in a refinery in a country where subsidy is in place is going to see no return on investment at all.

In 2012 , there were over 20 refinery licences issued. As at December 2011, fuel cost 65 at the pump. Landing cost was 99 naira which meant that production cost was probably above 80 naira per liter. Subsidy payments were already problematic.

So , which bank would lend money to someone wanting to build a refinery under such circumstances?

Dangote was able to find willing lender's not because he is a member of the Illuminati or a free mason but because he had other lucrative businesses. If he finished his refinery and subsidy with its price controls was still in place , meaning losses and inability to pay back the loans, AMCON will just take over his other businesses and pay the creditors back their money.

That's why Dangote was able to build. None of the other licensee had that advantage of owing a whole asse conglomerate.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by TheGoodJoe(m): 8:13am On Apr 19

nairalanda1:
Dangote was able to build his refineries under subsidy because he had a lot of other lucrative businesses

( Bear with me, I'll soon explain)

A key problem with subsidy is the price controls inherent in subsidy. That means that any bank or financial institution or investor investing in a refinery in a country where subsidy is in place is going to see no return on investment at all.

In 2012 , there were over 20 refinery licences issued. As at December 2011, fuel cost 65 at the pump. Landing cost was 99 naira which meant that production cost was probably above 80 naira per liter. Subsidy payments were already problematic.

So , which bank would lend money to someone wanting to build a refinery under such circumstances?

Dangote was able to find willing lender's not because he is a member of the Illuminati or a free mason but because he had other lucrative businesses. If he finished his refinery and subsidy with its price controls was still in place , meaning losses and inability to pay back the loans, AMCON will just take over his other businesses and pay the creditors back their money.

That's why Dangote was able to build. None of the other licensee had that advantage of owing a whole asse conglomerate.

I repeat, since the Subsidy is gone, why is there no refinery springing up if that was the reason.

Dangote worked because of massive government support. He got billions of dollars from Buhari 's government as loan. That is all.

If Government support more companies, they will bloom. The rest is story.

Re: Crude Oil Price Crash: Why Has Dangote Not Reduced His Fuel Prices? by nairalanda1(m): 8:13am On Apr 19

JealousCobra:
Dangote is a lot of people's role model but unfortunately he is a con business man.

Even if we had other refineries , they would still have to buy crude at very high prices , thus pushing up their production costs...so prices would still be high

2 Likes

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