₦airaland Forum

bdon123:
They dont raise d price immediately.i dey buy fuel its never immediate.
U lack patience

airsaylongcome:
They are making $50 profit on that stock. Profit is Selling Price minus Cost Price. If they bought at $60 and selling at $110, that’s a $50 profit. No Accountant on earth will use today’s cost price to calculate profit for product bought last week.

If you sell your old stock at $70, you either buy reduced stock or inject new capital. Assume say old stock finish 4pm and he go market and price increase immediately he go market, he go add money abi he go buy reduced stock?

bdon123:
This is an ignorant post.giv time as old stock has to go.price cannot be changed every week becos crude oil prices has changed.

ikechukz:
You're probably not a business person, so no need explaining further.

Unigrad:
Will you say this when the price of crude oil went up?
How come if there is price increase of crude oil, petrol products increase immediately while if there is fall in price of crude oil, there is excuses to reduce the price of petroleum products?
Well, I don't think you have a separate fuel station you are buying from. You and your family members are also feeling the heats.

malali:
Global crude oil prices have declined to the $70 per barrel mark, raising fresh expectations among Nigerians that domestic petrol prices could soon be reviewed downward.

The downward slide in crude prices continued on Thursday morning as the benchmark Brent crude slipped to $70 from $71 per barrel it closed on Wednesday.

However, despite the significant drop in international oil prices, the pump price of Premium Motor Spirit (PMS) otherwise known as petrol has remained unchanged in Nigeria despite pressure from Nigerians.

The decline in crude prices comes amid concerns over slowing global demand, easing geopolitical tensions in some oil-producing regions and expectations of increased supply from major producers.

Brent crude, the international benchmark, has retreated from higher levels recorded earlier in the year to around $70 per barrel.

With the deregulation of the downstream petroleum market, movements in global crude prices are expected to influence the cost of refined petroleum products.

This has prompted consumers to question why local pump prices have yet to reflect the latest decline in the international market weeks after.

The federal government through the Ministry of Petroleum and the Federal Competition and Consumer Protection Commission (FCCPC) had called for reduction in pump prices in response to the drastic drop in crude prices.

The Executive Vice Chairman and Chief Executive Officer of the Commission, Mr. Tunji Bello, clarified that the FCCPC does not regulate or approve petroleum prices in Nigeria’s deregulated downstream sector.

“To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices,” Bello said.

He added that while petroleum marketers often increase pump prices almost immediately whenever global crude oil prices rise, consumers are yet to enjoy corresponding reductions despite the recent decline in crude prices.

“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions,” he stated.

However, there has been a pushback from marketers over the threat of sanctions even as the marketers threaten to embark on strike.

Even as the crude price slipped to $70 as of press time, even lower than the pre-war level, a litre of PMS is still sold at over N1,200 in Lagos and almost N1,300 in the other parts of the country.
Source: https://dailytrust.com/just-in-crude-falls-to-70-but-nigerian-marketers-maintain-n1200-pump-price/

malali:
How long will it take for the government to intervene in this daylight extortion and exploitation of Nigerians ?

The same man who doubles as Minister of Petroleum, and is busy eyeing re-election, has not uttered a single word as marketers exploit Nigerians despite crashing crude prices.

This is the same president whose only real energy is reserved for collecting foreign loans and spending them.

Insecurity killing people daily? Silence.

Inflation choking families? Silence.

No power, no jobs? Silence.

Mass kidnapping of school children. Silence.

But petrol prices? Not a single official statement from his office.This lackadaisical, tone-deaf leadership is unacceptable. Tinubu should address Nigerians directly on this matter, not through proxies.

Tinubu can ease price pressure by opening temporary free-market import licenses for fuel marketers to import at competitive landed costs. Once new entrants flood supply, monopoly pricing breaks, competition forces margin compression, and prices naturally reset lower before incumbents lose market share.

CharlesCNG:
You are so on point.

It is like a woman who runs a small buka.

Last week, she bought rice at ₦80,000 per bag, tomatoes at ₦40,000 per basket, groundnut oil at a high price, paid transport, paid staff, bought gas, and cooked with those expensive inputs.

This week, rice drops to ₦65,000 in the market.

Will customers now storm her shop and say she must sell a plate of rice at the new lower price immediately, even though the food she cooked came from last week’s expensive stock?

That is not business. That is punishment.

She has to recover the cost of what she already bought before the cheaper market price can reflect in her next batch. If she keeps selling below her cost because people are shouting, she will soon close shop, and the same people will start asking why food sellers are disappearing.

Same thing with Dangote Refinery.

If Dangote bought crude at a higher dollar cost, paid logistics, insurance, financing, operations, staff, power, maintenance and regulatory costs, you cannot expect him to automatically sell that batch at a huge loss because today’s market mood has changed.

Another example: a petrol station buys fuel at ₦900 per litre and fills its underground tank. Two days later, depot price drops to ₦820. Will you force the station to sell its old stock at ₦820 and swallow the loss? If it does that repeatedly, it will not have money to restock.

So yes, prices should come down when input costs fall.

But price reduction must follow the actual cost of supply, not social media emotion.

Business does not run on vibes. It runs on cost, cash flow and replacement value.