₦airaland Forum

What is so different in stopping snuggling of petroleum products

What can trackers be installed and checks and balances put in place to curb this

adenigga:
Source: https://punchng.com/why-petrol-remains-expensive-in-nigeria-dangote

Rule No. 1 - A businessman will always give you 10 reasons why his product is expensive but still affordable.

Rule No. 2 - Don't forget Rule No.1.

...

I don't completely agree with Dangote on this one .
What smuggling can cause is scarcity not high price,
What we should be asking is " how much is he selling it to the marketers ?

Whatever the case may be Nigerians deserve a cheap petrol. I don't agree with Dangote on that because most of our neighbors have cheaper fuel. Nigeria produces this oil and the masses are not benefiting in anyway. Even non oil producing countries get it much cheaper. There is a lot of shinanigans giong on in our oil industry.

I don't blame Dangote. I blame fgn who made it possible for Dangote to Monopolize his way.

You cajoled Tinubu to remove subsidy so that you can sell fuel with huge profits, while Tinubu benefits by having more funds to embezzle.

That subsidy removal policy is a win-win for selected minority of the masses.

chicfarmer:
Am I missing something?
So because they are smuggling the product across borders, you then decide on your own to arbitrarily increase the price? As how?
I thought subsidy 'has been removed'?

I was really rooting for the Man, some years back when he said he is building this Refinery to ease the burden of Fuel Price and Scarcity on Nigerians. Even the Nigerian Government invested in the Refinery, our Taxes were used to give him Wavers on Machinery Imports.

Even this current Government promised Nigerians when it was removing Subsidy, that once the refinery is up and running, pric of PMS will fall.
But as Price of Crude Oil dey fall, the Man just raised his Pump Price a few days ago..... and still want to gather the Money of Nigerians with his expensive IPO of #525 for a 50Kobo share!

Kai, dem don wicked Nigerians too much.

femi4:
We want it back at N500

The refinery should be a plus

What do u mean by u want it back at 500… ?? Was it ever at 500??

RichDad1:
Few people will call Dangote a monopolistic capitalists going forward since y'all are now a shareholder in his refinery.

In other words, there's now a new refinery cabal made up of less than 1% of Nigerians

Iran2025:
Is Dangote now the minister of petroleum?

Tinubu remains the highest criminal in Nigeria history

This. It makes no sense. A conspiracy theorist may say that the increase in price was deliberately orchestrated to drive up stock prices.

I doubt if this Dangote man is educated.. there is absolutely no correlation between smuggling and increase in price of petrol. What he is doing is "predatory pricing" which is a serious economic crime.

Sounds to me like one trader that used influence of his ethnicity to buy off FG owned assets. I wonder why PBAT allowed the Emefiele saga to slide. This man defrauded the Federal Republic of Nigeria through shady FX deals at the CBN, yet the masses are busy celebrating him and the nonsense IPO he is selling.

This Nigeria is not a serious country atal.. from the so called manufacturers, to marketers consumers, regulators etc.. all birds of a feather.

HopeNeverDies:
Lol... I needa ask , how n what are we even benefiting from this dangote refinery brouhaha

The smuggling thing is an issue, yes agreed but I still maintain the fact that , I do not think the fight in middle east is affecting the availability of petrol in our country ... Coz the petrol we refine is from our country, so how does it affect the availability n price here?

Illiterates is a disease,

Well if they are smuggling it out,at least it's not at subsidies rate and this is one of the importance of subsidies removal.

What's the accusations at smugglers got to do with fuel prices in Nigeria? If Dangote sells to the open public then anyone can buy directly from Dangote and sell anywhere since it's not subsidized anymore. So Dangote should stop the excuses that smugglers are behind the price increment as I don't see any smugglers anywhere on this currently. This is a lame excuse!

I thought one of the benefit of subsidy removal was to curb smuggling
One of the benefit was also supposed to be massive investment but we're now being told it will be very difficult for another refinery to come on stream

smallsmall:
I was really rooting for the Man, some years back when he said he is building this Refinery to ease the burden of Fuel Price and Scarcity on Nigerians. Even the Nigerian Government invested in the Refinery, our Taxes were used to give him Wavers on Machinery Imports.

Even this current Government promised Nigerians when it was removing Subsidy, that once the refinery is up and running, pric of PMS will fall.
But as Price of Crude Oil dey fall, the Man just raised his Pump Price a few days ago..... and still want to gather the Money of Nigerians with his expensive IPO of #525 for a 50Kobo share!

Kai, dem don wicked Nigerians too much.

Chai... Lots of Nigerians were deceived by APC and Dangote.

Many of us saw the signs and warned that Dangote will hike the price of fuel the way he did with the price of cement.

Dangote is not concerned about the wellbeing of the masses. He's determined to grab every single kobo. He's a brutal capitalist.

Infact, his latest tactics now is to cash out from Nigerians by putting up his refinery on IPO. Every single losses he will incur in the following years to come will be borne by the share holders.

Iran2025:
Is Dangote now the minister of petroleum?

Tinubu remains the highest criminal in Nigeria history

That's your president till 2031... And be ready to buy Fuel for 3000 naira per litre, by the time he will finish in 2031. Fuel will be 5000 naira.

smallsmall:
I was really rooting for the Man, some years back when he said he is building this Refinery to ease the burden of Fuel Price and Scarcity on Nigerians. Even the Nigerian Government invested in the Refinery, our Taxes were used to give him Wavers on Machinery Imports.

Even this current Government promised Nigerians when it was removing Subsidy, that once the refinery is up and running, pric of PMS will fall.
But as Price of Crude Oil dey fall, the Man just raised his Pump Price a few days ago..... and still want to gather the Money of Nigerians with his expensive IPO of #525 for a 50Kobo share!

Kai, dem don wicked Nigerians too much.

The thing taya me jor.

Toh, another story about the price increase.
This time blame it on the smugglers.

But...but...but ...but I thought this was one of the reasons floated by government for removing subsidy. Just like equalizing currency exchange rates to kill round tripping.

So if the price is lower in Nigeria does it mean someone is paying subsidy....or what...

This is the exact reason why some folks are overly skeptical about this subsidy thing government peddles all over the economy.

Today they say Band A electricity is free market, tomorrow they will say it is subsidized and tariffs have to rise again.

This opacity in the fiscal management of this country's economy is a serious thorn in the flesh of citizens.

nairalanda1:
So essentially, the smuggling out of the country is creating a relative scarcity which is pushing up the prices...long and short of the tale.

Yeah, I'm not surprised there is smuggling, the only good thing about it now is that government is no longer paying subsides, so we aren't subsidising everyone and anyone. But at the end, the CUstoms needs to be up and doing.

Still Nigeria cannot stop smuggling, as most smugglers are a guy with a 50 kg keg of petrol...carrying it across the border. Not just the big tankers. Unless the government is ready to enclose Nigeria with the equivalent of the Berlin wall...the Berlin wall 2000 that the GDR leadership was planning for the 1990's that would have included among other things robot controlled guns operating by being triggered by motion sensors, anD cctv cameras everywhere...smuggling is going to happen. The fact that subsidy is gone means that it isn't being done at the expense of the treasury.

Still, a trick we could use is to charge tarrifs on petrol going out of the country...as much as 30%. Ouch.

No sir!

What he has just said is that it is dangerous for the price of petrol to be lower than it is in Nigeria because even at the pump price we call expensive in Nigeria, prices are between 25-30% more expensive across the border


Meaning that if Nigeria should reduce their own pump price, the incentive to smuggle the fuel out of Nigeria across the border would increase tremendously and this would lead to scarcity in Nigeria (potentially higher cost).

So, artificially, they maintain a higher cost in Nigeria to sustain availability.

TenQ:
No sir!

What he has just said is that it is dangerous for the price of petrol to be lower than it is in Nigeria because even at the pump price we call expensive in Nigeria, prices are between 25-30% more expensive across the border


Meaning that if Nigeria should reduce their own pump price, the incentive to smuggle the fuel out of Nigeria across the border would increase tremendously and this would lead to scarcity in Nigeria (potentially higher cost).

So, artificially, they maintain a higher cost in Nigeria to sustain availability.

Then why can't he just make fuel available for everyone irrespective of where they are taking the product to. How does this affect the price.

It is not as if he was the only supplier of products to the economy. Remember we still import a lot...a lot of products at international market price remember....or is his fuel cheaper than imports?

The koko of the matter remains that since subsidy ended, it supposedly ended the fear of smuggling since it equalized the price across the border so how can there be scarcity when everyone in Africa has access to global oil at no additional cost to refiners, importers or government....or is there something they are not telling us....


ARE THEY STILL PAYING SUBSIDY....tok tru...

I don't believe all these indices. Let every State has their supply and monitor their supply, anyone found diverting the product should be arrested and jailed and have their licences revoked. There should be an independent monitoring agencies that are independent of another.

Fuckyoumod:
See this man just dey deceive gullible people. What has smuggling got to do with the fact that crude prices fell, but Dangote kept increasing fuel prices?

Mtchww... Gullible People who don't understand monopoly and somebody taking advantage of a corrupt country like Nigeria will say yes to this fallacy.

Was this not the same refinery you Nigerians prayed, waited and clamored for? How has it improved your life's and your personal economics?

Ok he should tell us why cement is so expensive, a commodity that has all raw materials here in Nigeria. Sorry Nigerians, our leaders are very wicked people.

Dangote is just being mean. All what he said is a lie. If Dangote says fuel to fuel station at #1200 and the fuel station inturn sell to consumers at #1250. What does that has to do with smuggling? He is a monopolist. Who ever that buys in Nigeria and snuggle should not affect us here

Goinhard:
Reason for cement hike ? Smuggling too.



Richest man in Nigeria my foot.

Good question.

Typical Nigerian greedynrss, he want to get all the money he use in building the refinery back in a year, same way some people were protesting for Chinese to leave the country and not sell cheaper to the masses, so they can continue their monopoly and greedyness like dangote on Nigerians.

This man called Dangote is just giving flimsy excuses, he should continue when Nigerians are ready they will take back their country from this evil guys

adenigga:
Source: https://punchng.com/why-petrol-remains-expensive-in-nigeria-dangote

kenmaro:
What's the accusations at smugglers got to do with fuel prices in Nigeria? If Dangote sells to the open public then anyone can buy directly from Dangote and sell anywhere since it's not subsidized anymore. So Dangote should stop the excuses that smugglers are behind the price increment as I don't see any smugglers anywhere on this currently. This is a lame excuse!

That man is plain wicked. Very lame excuse

Evercurious:
I was just expecting someone to be as smart as you are to know this... Dangote issimply taking advantage of the corrupt govenment and country

he has no business in Europe or U.S because their laws won't allow his exploitation and corrupt business strategy

This man is a bloody liar, just like all other business men.

There is no neighbouring country around Nigeria where the price of petrol is 30 to 50 percent higher.

I can only agree with him during subsidy regime, not this time.

The price of petrol in Nigeria compared to neighbouring countries are minimal so much that you ant make an gains from smuggling except of course if you are smuggling in hundred of thousands of litters, not with few tankers.

If you are a tanker smuggler, the risk involved is far more than the gains.

If he tells us that smuggling will resurface if he decides to bring down the price of petrol far below the price in neighbouring countries which will lead to artificial scarcity, we will understand.

TenQ:
No sir!

What he has just said is that it is dangerous for the price of petrol to be lower than it is in Nigeria because even at the pump price we call expensive in Nigeria, prices are between 25-30% more expensive across the border


Meaning that if Nigeria should reduce their own pump price, the incentive to smuggle the fuel out of Nigeria across the border would increase tremendously and this would lead to scarcity in Nigeria (potentially higher cost).

So, artificially, they maintain a higher cost in Nigeria to sustain availability.

Which wasn't what I was talking about per Se.

So when government was giving you FOREX at highly subsidized rate with the mantra that your refinery will crash Petroleum products prices, you didn't know there is smuggling.

I feel so annoyed when Dangote explains this kind of rubbish. As if we are fools.

If government grants licences to anyone with the requisite approvals to import Petroleum products, the same Dangote will fight it. At least if there is massive importation of the products here and outside, it can help dissuade smuggling. But Dangote will never agree.

But he keeps declaring huge income and explaining jazz here.

That's why Yar"Adua (God bless his soul) view Dangote as just a shyluck capitalist and opened the cement market then which Dangote wanted to monopolize.

a favorable exchange rate can resolve everything

Goinhard:
Reason for cement hike ? Smuggling too.



Richest man in Nigeria my foot.

Strangely and funny enough, most of the commentaries above didn't bother to think along this line, many were trying to justify what the maigida was saying...

Omo, thank you for this wonderful and timely input.