₦airaland Forum

GEJDHERO:
Thats why Dangote must not be allow to have a monopoly.Licenses should be issued to as much importers as possible.

fineboynl:
the man is busy exporting the products internationally and using same price template for Nigeria

fineboynl:
before the conflict in Iran, global crude oil traded between $7o) and \$72 a barrel. Went up to about 140 -150 at the peak of the war. but now back to 80$-90$ but why Nigeria fuel is still very expensive?

Lithiumite:
It doesn't work that way,crude supplies contracts usually dont get termed on a daily basis there is what you call futures and spot pricing,what you are looking at is the spot price and anyone who buys at that price today will take several weeks before it gets to the pump for you to buy,by then the price could have jumped back up and tbe dealers also need to edge themselves against volatility imagine buying at $70 and byvthe time it gets to the pump prices has gone up again back to $100 will you as a business man not sell another price that will cover your cost when you go back tobthe market for new supplies.

Thats why you hear stuff like our crude has been sold 3 months up front,if dangote had bought at $120 when the Iran war started on a 3 months futures contract,he will still be getting supplied at that same 120 today and if he decides to buy on another spot contract today for $70 it will take several weeks for that to be able to reflect on his gantry price.

Kaymaxi2222:
but all this was not applied oo when it was time for increment because it was almost immediately the price of crude went up that this nicompo increase the pump price to.

heniford2:
I have three fill stations in Nigeria I seriously dnt want the price to come down now🤲🏽 let it be like this till December

Kaymaxi2222:
but all this was not applied oo when it was time for increment because it was almost immediately the price of crude went up that this nicompo increase the pump price to.

Gotocourt:
1-2wks before price reflection 📌💯

Dogalmighty17:
Let me try explaining to you OP since you are obviously too lazy to research issues yourself.
Crude oil tankers take weeks to arrive at ports of destination. The price that crude was bought, determines how much the resultant fractional units gets sold for. It doesn't matter if price drops when that ship is still in transit and the refinery has to process its contents. The refinery will sell products at the price of the latest import.

If the refinery orders more crude at a lesser price, then prices at the pump will come down. Let's not forget that Dangote still sources his crude from outside. He has to offset that before little gains can start coming in.

fineboynl:
lol. The price have been coming down for me than 2 weeks.

It didn’t just jump overnight to 80$.

All of which didn’t reflect.

Lithiumite:
Imagine you sell bottled water and your cost price is 1,200 to sell at 1,500 a pack,you still have stock to last you a week but you get news that prices have gone up to 1,300 a pack,yoi will have to increase price to 1,600 despite you bought your current stock at 1,200,you need to hedge against the 100 naira increment and maintain your profit margin of 25%......you will have to increase prices immediately.

When you then restock at the new cost price of 1 300 to sell art 1,600 but you then hear again prices has dropped back to 1,200,you cannot immediately reduce your selling price back to 1 500 because you bought at 1,300 and you will need to still retain your 25% margin.

Prince111111:
You got it totally wrong please! The people in the same business with you would already started selling theirs at low prices which would make you not to dispose the water asap and Water doesn’t last that much before it starts having taste or changing colour. Remember that price control is one of the reasons why the water associations like ATWAP was formed. But mind you, no association will question why you are selling yours at higher prices because they know that you will likely not be able to dispose your goods and no one would tell you to reduce it when you cant get as much buyers as you want and cant be watching them getting spoilt.

Lithiumite:
Imagine you sell bottled water and your cost price is 1,200 to sell at 1,500 a pack,you still have stock to last you a week but you get news that prices have gone up to 1,300 a pack,yoi will have to increase price to 1,600 despite you bought your current stock at 1,200,you need to hedge against the 100 naira increment and maintain your profit margin of 25%......you will have to increase prices immediately.

When you then restock at the new cost price of 1 300 to sell art 1,600 but you then hear again prices has dropped back to 1,200,you cannot immediately reduce your selling price back to 1 500 because you bought at 1,300 and you will need to still retain your 25% margin.

Gotocourt:
1-2wks before price reflection 📌💯

fineboynl:
before the conflict in Iran, global crude oil traded between $7o) and \$72 a barrel. Went up to about 140 -150 at the peak of the war. but now back to 80$-90$ but why Nigeria fuel is still very expensive?

ZombieDredd:
But when it goes up it reflects in a twinkle of an eye.

Are you sure you are ok?

FSBoperator:
Inventory !

Try and understand what it means .

As a petty trader you are, do you adjust prices of goods in your stock when the current price of what you have crashes?

ZombieDredd:
But when it goes up it reflects in a twinkle of an eye.

Are you sure you are ok?