₦airaland Forum

A senior official of the Dangote Petroleum Refinery says the refinery is effectively subsidising petrol and diesel in the Nigerian market to cushion the impact of rising global crude oil prices.

Diesel, Aviation fuel dynamics Industry dispute over pricingvThe official, who spoke on Monday on condition of anonymity, said the refinery’s N1,200 per litre ex-depot price for petrol remains below prevailing market rates despite a sharp increase in crude oil prices triggered by geopolitical tensions.

According to the source, crude oil prices surged significantly following tensions involving Iran and the United States, including disruptions around the Strait of Hormuz.

Brent crude reportedly rose from $66 per barrel on 28 February to over $100, driving up production costs across petroleum products.

“As crude prices moved up steeply, we tried to optimise the price of PMS (petrol) as much as possible to help the public,” the official said.

When asked if “optimisation” implied subsidy, the source answered in the affirmative.

https://vop.ng/dangote-refinery-subsidises-petrol-diesel-amid-price-surge

Hmm.. This thing dey real so

Akuko well done Mr subsidy

APC has really brought this beautiful country to its knees

Petrol is cheaper than water in Iran o

Dangote should be the President Of Nigeria henceforth since he has sympathy for the citizens than this president of bulabaloo...

Subsidizing wetin? You dey whine us?

Hmm another palava we move

I told your guys agbero chairman will get fuel below #150 before 2027 . agbero chairman till 5080. The builder of Lagos state from the sea according to agbero union is here to build nigeria.a country that has crude is paying more than countries that had none

Xaint777:
Petrol is cheaper than water in Iran o

When we were screaming that subsidy removal is a scam. People said those of us with objections are wailers. Now we see the impact - prices have spiralled out of control and there's no meaningful cushion for the public.

Wat useless tinibu could not do yet, he has borrowed more money in trillions more than previous govt that made life easier for Nigerians by subsidising petrol

The useless oldman should prepare his handover notes

They will soon regret it.

When the bill comes in, prices will remain higher after oil prices drop so that dangote makes back his money.

badonkadonk:
Hmm.. This thing dey real so

Baba know Wetin he dey do. He want to look good in the eyes of the citizens always . Most especially in this fuel part. E go turn cement pattern with time. He knows the game he is playing with the minds of Nigeria who forgets easily

Hahahhaah

Monopolist droping price lol

De play

Pure lies. Imported petrol is still a little cheaper so how are you subsidizing it?

Emzedz:
Wat useless tinibu could not do yet, he has borrowed more money in trillions more than previous govt that made life easier for Nigerians by subsidising petrol

The useless oldman should prepare his handover notes

Omo, I agree, tinubu is useless, but bringing back subsidy is going to mean that we could be spending half or more of our budget just to keep fuel at say 200 naira per liter.

Which could have disastrous effects on things like salaries, government projects and even imports.

Any story with source and an obscure link like this should be disregarded
Let mods be aware that some stories have capacity to lead to unintended reactions

Dangote the downstream cartels.... He should be thankful he don't set up this refinery in us or so...

success1smyn:
Pure lies. Imported petrol is still a little cheaper so how are you subsidizing it?

Imported petrol is also made at substandard refineries.

There are refineries in Europe that make substandard fuel for the African market. It's where many African countries get their fuel from and it is why most African countries are not charging for fuel at say N3000 or more per liter equivalent. It is where we Nigerians used to get our fuel from after subsidy wrecked our domestic refining.

grandiose4ever:
When we were screaming that subsidy removal is a scam. People said those of us with objections are wailers. Now we see the impact - prices have spiralled out of control and there's no meaningful cushion for the public.

Do you understand subsidy at all? It was subsidy removal that cause prices to increase so how can subsidy removal be a scam or do you want prices to be cheaper when subsidy is removed?

Who is actually ruling this country

I love Nigerians and their myopic ways of thinking…. I will increase something from 400 naira to 1600 naira, then later I’ll take it down to 1100 naira, Nigerians will be celebrating about it … no wonder their leaders take them for a fool

vecman22:
APC has really brought this beautiful country to its knees

All Promises Cancelled, APC is the worst thing to happen to us.

Can you imagine how much subsidy APC is forcing on Nigerians due to the massive corruption in their oil sector since 2015, when petrol should NEVER have gone above N70

anonimi:
Petrol should never cost more than N70 per litre, says APC

January 19, 2015

The All Progressives Congress (APC) has described as mere tokenism the reduction of petrol price from N97 to N87 per litre, saying the petroleum product ordinarily should sell for N70.

On Sunday, the federal government announced the reduction of petrol price, citing the fall of global crude oil price.

But the APC through Lai Mohammed, its spokesman, on Monday accused the government of making a show out of deceit, saying “a 10.3 per cent slash in the price of petrol was a mere tokenism at a time the price of crude oil has crashed by about 60 per cent”.

It argued that the pump price of a litre of petrol should not be more than 70 Naira, alleging that at N87 per litre, the government was forcing Nigerians to subsidise the massive corruption in the oil sector by N17 for every litre of fuel.

https://www.thecable.ng/petrol-never-cost-n70-per-litre-says-apc/

nairalanda1:
Imported petrol is also made at substandard refineries.

There are refineries in Europe that make substandard fuel for the African market. It's where many African countries get their fuel from and it is why most African countries are not charging for fuel at say N3000 or more per liter equivalent. It is where we Nigerians used to get our fuel from after subsidy wrecked our domestic refining.

If imported petrol is cheaper than Dangote refined petrol then Dangote is not subsidizing anything. It's a lie. If they say they are not making enough profit yes I can understand but they are not subsidizing anything. You will see that they will come out to address the issue and clarify it.

grandiose4ever:
When we were screaming that subsidy removal is a scam. People said those of us with objections are wailers. Now we see the impact - prices have spiralled out of control and there's no meaningful cushion for the public.

Subsidy removal is why salaries are still being paid.

Had subsidy been kept, ie petrol still costing N200 per liter, subsidy costs per annum would be at 30 trillion naira or more. Our budget is 54 trillion naira.

And there would be massive smuggling of fuel...because of the price differential. And most of the smugglers would be ordinary Nigerians, not just the rich guys

And how would we replace the 30 trillion naira per annum...by...more ...borrowing. Borrowing by printing money, since IMF won't pay us anything anymore.

The thing is, we should have let GEJ remove subsidy in 2012...even I saw the light back then, but most of you , including GEJ supporters said NO. And tinubu was among those saying no...now Karma has hit him well. Had subsidy gone then, things would have been a bit more manageable.

The man of the people, I doff my cap sir

success1smyn:
Do you understand subsidy at all? It was subsidy removal that cause prices to increase so how can subsidy removal be a scam or do you want prices to be cheaper when subsidy is removed?

I don't know what you are talking about.

success1smyn:
If imported petrol is cheaper than Dangote refined petrol then Dangote is not subsidizing anything. It's a lie. If they say they are not making enough profit yes I can understand but they are not subsidizing anything. You will see that they will come out to address the issue and clarify it.

It is better to buy Dangote fuel...that improted fuel would wreck your engine.

Firstly, you don't agree that he is useless because you totally support him. You're only pretending and eye servicing to deceive those who don't know you.
Secondly, if they reduce the stealing and corruption (reduce not stop)...they will comfortably pay subsidy. Petrol subsidy is the only benefit most Nigerians were getting in their fatherland.

nairalanda1:
Omo, I agree, tinubu is useless, but bringing back subsidy is going to mean that we could be spending half or more of our budget just to keep fuel at say 200 naira per liter.

Which could have disastrous effects on things like salaries, government projects and even imports.

Dangote for President 2027

badonkadonk:
Hmm.. This thing dey real so

simple statement, you don't understand