₦airaland Forum

yemre:
We're so funny in this country. When prices of crude go up, we would not sell the old stock at old prices but the moment it comes down, we suddenly remember the need to sell off the old stock!

As of today, petrol is supposed to be selling for N770.00

What about the excess money that was created into circulation?

Alexas58:
Please I am not understanding this stuff at all
Fuel price increased immediately oil rose to $118/ barrel from about 850- 1350, and now that oil is back to $74/ barrel , why is fuel still being sold at 1350??


I thought it’s forex that runs this oil economy

Have you checked the money supply of them and now

Checkwell:
And we have a task force that is supposed to regulate fuel station pump activities?

This country lacks leadership on all fronts.

You task that is supposed to regulate a deregulated, free market economy!
Are you serious?

8

Polchiz:
Do not try to defend nonsense as if Nigerians are daft.
We know how monopolists like Dangote take advantage of our vulnerability.
When crude oil prices rose due to the disruption and uncertainty caused by the Iran–Israel conflict and the threatened closure of the Strait of Hormuz, fuel prices were increased almost immediately, even though much of the crude oil being refined had been purchased at lower prices. Now that the conflict has eased and global crude oil prices have declined, why is the same speed and logic not being applied to reduce fuel prices for consumers?
Let me be more assertive here:
Fuel prices were increased promptly when crude oil prices surged during the Iran–Israel conflict, despite refiners processing crude purchased at earlier, lower prices. Now that the war has ended and crude oil prices have fallen significantly, consumers deserve to know why fuel prices are not being reduced with the same urgency.
Thank you!

I understand your logic, if I don't know otherwise, I will be towing the same line.
However, point of correction, the trapped stock at the gulf will not be delivered untill few weeks from now, sorry the effect of the war is till on Sir.
Also, you can't pinpoint any data that will will back up your claim that dangote jerked up price immediately the war started, never! No did he jerk up price immediately oil price went over 100$. Let's be factual and not play sentiments.
I am not a fan of dangote or any monopolist, but he is godsent, if not for him, NNPC will use the stupid war and sell 100% blended and low quality imported fuel to you at 2,200 per liter and there's nothing that will happen. You will even beg and qué at the filling stations to get small. No be Nigeria we dey again? Why the short memory?

Fekumzi123:
That's why I say na we dey do ourselves. Not everything is government and in fact we're the government.
Once price goes up, we use old stock to make profit but when prices drops, it becomes difficult to sell at loss.
We all do it, so let's calm down until we finish our old stock. Thanks.

Not everything is the government, but the same government is watching the money supply increase everyday while is a citizen like you is waiting for imaginary price reduction.

Minjim:
Nigerian economy defies the normal textbook theory of demand and supply bullshit crap.

The only explanation is greed and corruption

Last time I checked, the way this world economy was designed to operate were never written in any school textbooks. In 2026, are you still using imaginary demand and supply when economic giants shorting and longing oil prices on future market to go in there desire direction per unit time.

DeltaBachelor:
Nigerian pricing system defies GRAVITY. Once it goes up, it can never come down

Last time I checked, gravity was taught in natural science like physics and not economics.

SHARAP!!!!! WHICH INFLATED ECONOMY...

NIGERIANS ARE GREEDY ND DO NOT LOVE EACH ODA
ALWAYZ LOOKING FOR WAYS TO EXPLOIT EACH ODA..

ONCE IMPORTED PETROL STARTS FLOWING IN DANGOTE WOULD B FORCED TO DO RIGHT

Helinuse:
You guys are yet to grasp the concept of an inflated economy like Nigeria,
In a non-inflated economy, when prices rise due to events, the structure of the economy will bring it back to its place post-event.
For an inflated economy, even without events, prices want to go up; they want to explode.
The event just gives it the excuse. But the real place of the price is up there.

The rule is that, when a price goes up, it cannot come down.

Ahmeduana:
Did they finish selling the old stock before they jacked up the price?

We you keep selling at the old price only to be unable to restock the same quantity causing scarcity which helps push the price further.

ogascomax:
So you think I don't understand what I am talking about. Who regulates the activities of the oil industry. Who regulates their operations. You don't still understand that government oversees their activities. Government can still regulate pricing when they see that citizens are being charge excessively.

Government will only regulate price if they introduce subsidy

demstone:
SHARAP!!!!! WHICH INFLATED ECONOMY...

NIGERIANS ARE GREEDY ND DO NOT LOVE EACH ODA
ALWAYZ LOOKING FOR WAYS TO EXPLOIT EACH ODA..

ONCE IMPORTED PETROL STARTS FLOWING IN DANGOTE WOULD B FORCED TO DO RIGHT

Business is not done based on 'loving' other people...business is done on the basis of making enough money to keep the business running.

yemre:
I disagree.

Crude was $80 when we were buying fuel for #839. Now it's $74, we should buy for #770. Even as at last week, crude was $118-$120 and we were buying for #1,350. Now tell me if my analysis is not correct and why we should buy it for #1,000 at $74/barrel.

Your money supply then and now

Abi....when I was telling everyone that cared to listen..what's our business with strait of Hormuz ...they thought I didn't know what I was saying...now you see it.

It would still come down shaa...only if dangote wants to be sincere with himself. Because now the strait of Hormuz excuse has expired.

Alexas58:
Please I am not understanding this stuff at all
Fuel price increased immediately oil rose to $118/ barrel from about 850- 1350, and now that oil is back to $74/ barrel , why is fuel still being sold at 1350??


I thought it’s forex that runs this oil economy

Bluearrow:
Oga it is greed!
Finish old stocks in old prices, add money to your capital & carry new stocks, that way u can talk about finishing new stocks at high price even if prices go down. But they start selling old stocks at high prices to make more money.

Add money form where?

It shows the level of risk they are ready to take. You know they will like to err on the side of caution. Let's hope for the best. Cheers.

just2endowed:
In account, you are not really making lost depending on how you cost your inventory.
To know that this marketers or dangote is lying with costing is because, immediately oil crude rise, these greedy fellow increase price. This reflect that the costing on inventory is reflected immediately.

Ifyz0001:
Abi....when I was telling everyone that cared to listen..what's our business with strait of Hormuz ...they thought I didn't know what I was saying...now you see it.

It would still come down shaa...only if dangote wants to be sincere with himself. Because now the strait of Hormuz excuse has expired.

Well, as an OPEC member,we are obliged to sell crude, both domestically and internationally, at OPEC prices. Thats why what happens at the strait of Hormuz, affects us too.

Alexas58:
Please I am not understanding this stuff at all
Fuel price increased immediately oil rose to $118/ barrel from about 850- 1350, and now that oil is back to $74/ barrel , why is fuel still being sold at 1350??


I thought it’s forex that runs this oil economy

.
They have not yet finished selling the old stock of fuel... when they sell it finish and buy a new one ..the price of the new one will be reduced and low

Gboss247:
What about the excess money that was created into circulation?

Excess money was created long before the strait of houmouz was blocked. All we experienced since Feb 28 till now is as a result of the Iran-US-Israel crisis which led to the closure of the strait and it resulted in reduction in oil supply all over the world. The demands then overwhelmed the supply and that triggered the hikes.

So, it has nothing to do with the injection of funds into the circulation

Alexas58:
Please I am not understanding this stuff at all
Fuel price increased immediately oil rose to $118/ barrel from about 850- 1350, and now that oil is back to $74/ barrel , why is fuel still being sold at 1350??


I thought it’s forex that runs this oil economy

I bought fuel today @1280. They need to move this price down ASAP

NIGERIA ND NIGERIANS ARE UNUSUAL PEOPLE..

IF TINUBU BANS THE IMPORTATION OF PETROL FOR EXAMPLE
I WOULDNT B SURPRISED IF PRICE OF PETROL GETS TO 1500/LITRE BY YEAR END

INSTEAD OF DROPPING TO 830/ LITRE..
DAT'S NOT BUSINESS IT'S MADNESS..

DO YOU KNOW THERE WAS A TIME WEN DANGOTE WAS ASKED WHY HIS COST OF EXPORTED PETROL WAS LOWER THAN D PRICE HE SOLD PETROL TO NIGERIA

nairalanda1:
Business is not done based on 'loving' other people...business is done on the basis of making enough money to keep the business running.

Krak:
I bought directly at BOVAS filling station, where those who resell buy it from. I always buy from places like that to reduce cost.

Ok good.

Illiteracy dey worry many people, as if they never did economics in secondary school

Pump price was reverted less than a week ago, and you expect the new price to drop almost immediately?

This will still take a few weeks for the new price to take effect at filling station

Although I know that a lot of filling stations are greedy but this is pure economics playing out

Gboss247:
We you keep selling at the old price only to be unable to restock the same quantity causing scarcity which helps push the price further.

What a dumb argument

demstone:
NIGERIA ND NIGERIANS ARE UNUSUAL PEOPLE..

IF TINUBU BANS THE IMPORTATION OF PETROL FOR EXAMPLE
I WOULDNT B SURPRISED IF PRICE OF PETROL GETS TO 1500/LITRE BY YEAR END

INSTEAD OF DROPPING TO 830/ LITRE..
DAT'S NOT BUSINESS IT'S MADNESS..

Yes, because banning the import of fuel would create a relative scarcity...which always tends to push prices up.

DO YOU KNOW THERE WAS A TIME WEN DANGOTE WAS ASKED WHY HIS COST OF EXPORTED PETROL WAS LOWER THAN D PRICE HE SOLD PETROL TO NIGERIA

No, this is not quite correct.

Dangote sells fuel at an ex-gantry price, which is the same for exports, and nigeria sales. Once dangote exports fuel to say Togo...prices go up due to transport costs, etc, as they do in NIgeria...at the pump.

nairalanda1:
Well, the old fuel stocks have to be sold off first, or else the marketers and refiners lose money.

In brief, when the fuel that is being sold now was being refined, the price was higher than it is now. So the prices of fuel won't come down until that old stock is sold off.

When the fuel that is being sold at the new prices ie the lower price, is refined and reaches the market, that's when the price most likely would come down.

It may happen in the next few weeks, since most of our fuel is being produced domestically, but again depends.

Keep in mind that if fuel prices fall TODAY...it means losses, which affects salaries and wages of workers in the petroleum sector. Ordinary Nigerians.

MODIFIED

This guy explains it better than I can ever do

We're so funny in this country. When prices of crude go up, we would not sell the old stock at old prices but the moment it comes down, we suddenly remember the need to sell off the old stock!

As of today, petrol is supposed to be selling for N770.00

Sicklebear28:
We're so funny in this country. When prices of crude go up, we would not sell the old stock at old prices but the moment it comes down, we suddenly remember the need to sell off the old stock!

As of today, petrol is supposed to be selling for N770.00

So, you want them to lose money because you want cheap fuel?

Would you lower prices if you were in a fuel marketer's place right now?

nairalanda1:
Unfortunately, now that subsidy is gone, government cannot regulate prices of fuel.


Regulation arose because under subsidy, government was assuming a lot of the costs of selling fuel, meaning that (in theory) marketers were taken care of. Any marketer trying to scam the government or make extra illict money on the side was subject to regulations..hence the need to regulateprices and enforce such regulations

Now that subsidy is gone, no more regulation. The only way government can regulate prices is to pay a production subsidy to refineries..via giving them some money, reducing their taxes, etc. Not by consumption subsides anymore. ANd it does not bring down prices a lot.

(And even production susbdies can cost the treasury a lot of money...see Russia for example).

I will still tell you again that government can regulate price. There is nothing you have explained that I am not aware of. There is always a price control in a function system otherwise the various stakeholders can come together and say let us sell petrol 2500. There ways government can influence market price also. We leave an a exploitative society that government allow people to do whatever they like to do.
Market forces determine pricing. However, if it comes to a time that the marketers and refinery owners may want to take advantage of circumstances the government can act because they are not ignorant of the market either.

ogascomax:
I will still tell you again that government can regulate price. There is nothing you have explained that I am not aware of. There is always a price control in a function system otherwise the various stakeholders can come together and say let us sell petrol 2500. There ways government can influence market price also. We leave an a exploitative society that government allow people to do whatever they like to do.
Market forces determine pricing. However, if it comes to a time that the marketers and refinery owners may want to take advantage of circumstances the government can act because they are not ignorant of the market either.

They can't . That's a one way road to

1. Discouraging investment in more refineries

2. Wrecking existing refineries

And central to the above two reasons is the right to make a profit. Because making a profit is crucial to how the refineries should be able to run...especially since they have to import 90% of the stuff they need to keep the refineries running well.(Nigeria can't build a refinery or oil rig from scratch in the country).

In Poland when it was under the rule of the Communist party, prices of foodstuff were controlled and regulated by the State. The result was massive food scarcity, with queues for various foodstuffs from time to time. Once the communist government was voted out in 1989, prices of foodstuff rose, but this time food was available in plentiful measure....and eventually prcies stabilzed

IN Nigeria, the government used to set prices for certain foodstuff..essenco. It worked until oil prices fell, and it became difficult to maintain the prices, leading to relative scarcity of things like milk and bread. It was eventually ended...and now there is plentiful milk and bread in NIgeria.

The problem with government regulating prices is that it is not going to regulate prices according to the needs of the business, it is going to do so to win votes and popularity. And if it means forcing the business or refinery to run at a loss, so be it. (That's why we lost our four refineries under subsidy and the price regulation it entailed).

ogascomax:
That is why I say we don't have government. When it was high our stupid government were saying that it's the war that cause it but now the war is over and crude has dropped down, Dangote is not using same energy and quickness to bring the products down. Now they are taking time because their excuse will be we bought it at that price. What about the price that they did not buy it and sold almost doubled the price.

Tinubu is packing elevyion money through it.

You're right but We're watching closely.

A Price war is coming soon between Dangote and importers again

nairalanda1:
They can't . That's a one way road to

1. Discouraging investment in more refineries

2. Wrecking existing refineries

And central to the above two reasons is the right to make a profit. Because making a profit is crucial to how the refineries should be able to run...especially since they have to import 90% of the stuff they need to keep the refineries running well.(Nigeria can't build a refinery or oil rig from scratch in the country).

In Poland when it was under the rule of the Communist party, prices of foodstuff were controlled and regulated by the State. The result was massive food scarcity, with queues for various foodstuffs from time to time. Once the communist government was voted out in 1989, prices of foodstuff rose, but this time food was available in plentiful measure....and eventually prcies stabilzed

IN Nigeria, the government used to set prices for certain foodstuff..essenco. It worked until oil prices fell, and it became difficult to maintain the prices, leading to relative scarcity of things like milk and bread. It was eventually ended...and now there is plentiful milk and bread in NIgeria.

The problem with government regulating prices is that it is not going to regulate prices according to the needs of the business, it is going to do so to win votes and popularity. And if it means forcing the business or refinery to run at a loss, so be it. (That's why we lost our four refineries under subsidy and the price regulation it entailed).

Don't take Nigerians for granted. Nigerians played a significant role in building Dangote refinery. Dangote that end up sacking the Nigerians that helped him build the refinery and replaced them with Indians.
I have being in the oil industry and Nigerians are doing a lots.
Now back to your theory. Tell me what Saudi Arabia and Russia that is doing differently that makes the product cheap.
South Korea controlled pricing during the global spike in price.
In Nigeria anything goes. It's about interest.