₦airaland Forum

Nolevel666:
At 850 per kg?

Unless the rate of combustion is less than PMS
I.e the energy density is higher than petrol per kg

you're talking about the price of LPG. Not sure of the price of CNG LNG.

But this is what I saw on Google

Today vs. 24 hours ago

Amount Today at 1:50 am 24 hours ago

0.5 CNG NGN 20.70 NGN 24.10

1 CNG NGN 41.40 NGN 48.19

5 CNG NGN 207.01 NGN 240.95

10 CNG NGN 414.03 NGN 481.91

Asswipemod:
But oga, PMS and Gasoline na the same tin naa

what I meant was diesel

pocom16:
First of all there is no independent marketer importing fuel.. NNPC is the sole importer of all petroleum products.

Second..
The drop out of the so called demand and supply isn't going to be significant..inshort when subsidies are removed the only thing that can significantly drop PMS prices is crude oil prices.. how many people consume diesel.. inshort do you know when diesel prices increased x4 alot of businesses abandoned it..some didn't..still did it force the price down? No.. Diesel is also fully deregulated .

When kerosene was the normal house hold fuel for cooking..GEJ removed subsidies off kerosene and prices jumped .every one simply switched to gas.. today an average family doesn't use kerosene yet the prices are still very high.. because of the cost of production attributed to crude oil prices and exchange rates..

Every one switching to CNG will not significantly impact on PMS prices.. the crude oil price will . Those who process crude oil to PMS have an average leverage as profit they make.. The price can go higher if there is a scarcity though..

. “NNPC had arrangements with some of the oil marketers as a stop-gap for importation of PMS in 2020 but what we would do is we will provide you information on those things imported and the vessels and everything, so that you will be cognizant of those that did the importation. Like I said, this is the data that we got from PPPRA then and NNPC also, so we collated those data and from the importers themselves.
This is an extract from this article on Vanguard.

https://www.vanguardngr.com/2022/07/how-n4-194trn-was-paid-as-fuel-subsidy-from-2017-to-2022-oagf/.

See, NNPC is the sole importer, but the importation is done by marketers under arrangement with NNPC.
They're the ones receiving the bulk of the subsidy payment.

Take away subsidy, price will double.


Price of crude oil does not really have much direct effect on petrol pump price.
The major factor affecting petrol pump price, is refining, haulage and dollar exchange rate.

If crude oil price is the only major factor affecting petrol pump price, then prices of petrol across the globe would be the same.

We're not refining petrol here. Our refineries are in comatose. Most of the PMS we use here are imported from other countries, and ferried down to Nigeria. Dollar exchange rate affects the price, cost of haulage affects the price, etc.

Now coming to Why kerosene hasn't gone down. Kerosene isn't only used as cooking gas. It is the primary component of aviation fuel.
Airlines uses it. It's on high demand.

Diesel too is use for engine oil blending. So apart from automobiles, factories needs it. The price won't drop.

I have given you a run down on how it will affect the price of pms

treatise:
SON isn't different from INEC. I've seen a couple of innoson vehicles that are a few years old, hmmmm

my brother, I have seen brand new Toyota Hilux given to police turn to Scrab. It's not the fault of the vehicle, it's lack of maintenance culture and I don't care altitude of public office holders because it's not their properties. I have seen private Innoson vehicles still sound and classy

pocom16:
The point I made is that PMS has a constant and regulated price.. if fuel subsidies are removed.. the official price will be let say.. N400

even if all the cars in Nigeria switch to CNG..PMS will still be sold at N400.. as that prices is not influenced by demands or supply of PMS but by the price of crude oil used in processing

I think you're a bit wrong Sir.

The reason government has petroleum pricing regulatory body is because the government is the one subsidizing the product. Subsidizing the product here means that the government is the one paying certain amount of money albeit huge sum, to independent marketers who imports the product. The reason for giving the money to this importers is because they said if they add all the expenses they uncured in the cause of bringing in petrol into the country, that the pump price of the petrol we're buying will be more than what we're buying now. So government has to pay them some amount to offset part of that expenditure, in other to make sure the price is affordable. Haven offset part of the expenditure, the federal government has the right to determine how much fuel has to be sold to the public, that's why Petroleum products pricing regulatory agency PPPRA was established.

I know why I went into details

Now, if the federal government removes subsidy, they won't have right to tell importers how much they will sell their products because you don't know how much expenses they incured in the cause of bringing in the products.

Haven established that, there's no way the price of Petrol will be pegged at certain amount after subsidy is removed,because price is determined by economic law of demand and supply.

Therefore, their won't be any official price for petrol after subsidy is gone.
Market forces of demand and supply and availability, will determine the price.

The price won't be stable.

Just like every other commodity in the market.

People will go for cheaper source of energy to power their automobiles.

If CNG LNG is cheaper than PMS they will go for CNG LNG.

If greater percentage of the people opt for CNG LNG, it will affect PMS because it will no longer be attractive because of high cost of pump price. And when it's no longer attractive, the price will most likely drop.

treatise:
I implied durability not weather conditions.

And Standard organization of Nigeria (SON ) that certified the vehicle, told you that the vehicles ain't durable?.

In engineering, strength of materials are subjected to very rigorous tests, before being used.

You don't know more than SON

Kobojunkiee:
If anything now more than ever people have no need to depend on others for their progress in life.

Bro, lots of people doesn't depend on others. In fact there are people that doesn't even have whom to depend on

Pootle:
best coupling company of nigeria

your papa get bicycle?

treatise:
Let's encourage the man but the quality not at park with Japanese and European standards

Why do you guys have slave mentality?. Every vehicle is built based on country's standard.
Country's standard e.g Temperature, terrain etc. Standard organization of Nigeria has certified his vehicles as regarding standard. So what other standard are you talking about??

okeysoninv:
wrong,CNG is mostly a methane and LPG propane. it's not easy to set LNG because it's requires extreme low temperature.

checked again. Thanks. Apparently I interchanged it.

pocom16:
With fuel subsidies on it way .. it definitely won't

What Influences PMS prices is the cost per barrel of oil, exchange rates, and demand and supply..

This CNG vehicles are not enough to reduce demands.. but it will increase demands for gas WhIch also isn't readily available..


The reason why innoson is now eying gas powered vehicles is because the government ain't joking on removing PMS subsidies..this means, PMS won't be cost effective for transport anyone and the only alternative 7s gas..
It won't change petrol prices at all

Ok first, I want to tell you that, should government remove fuel subsidy, the price of Petrol will double. It will be around 600-700 or even #800 a litre. That's huge already.
The impact will be felt across board.

I've never implied that CNG vehicles are enough. I'm not sure what you meant by not being enough to reduce demand. CNG isn't same as LPG. LPG is cooking gas. Liquefied petroleum gas,. It won't affect the price of LPG.

Your comment is a bit contradictory.

If PMS won't be cost effective after subsidy is gone, it means more people will source for alternative for pms, which is CNG LNG vehicles.

And if more people dump pms for LNG CNG, vehicles, the demand for pms will be affected. Not sure how much it will be affected because that would depend on the number of people willing to go for CNG LNG vehicles. If good number of Nigerians go for CNG vehicles, then the demand curve for pms will flatten.
The demand for CNG May cause equilibrium to the sector. It will reduce the price for PMS and slightly increase the price of CNG LNG, thereby causing a psuedo equilibrium.

pocom16:
It won't

ok, why do you think so bro?

manutdrichie:
What about The tricycle

not sure of the price. That's just for launching, they will soon go into mass production and will surely announce the price

samuelson06:
You should also add that one can even produce the gas at home via biogass and turn it into their car. This is very commendable. A big win for Nigeria, especially as we are battling with subsidy removal.

awesome 👍

lexy2014:
With the age thing that you flaunting, you mean you still can't answer very simple questions even after giving you expo? Na wa oh.

Is gas not readily available in the Niger delta area? Simple yes or no

What's the result of the gas in d ND? Very simple question

Is it gas that made Japan and Germany to blow? simple yes or no

I'm pretty sure you're a primary school student

Flier:
Every part of Innoson is imported,its just being assembled in Nigeria
No car maker can make all its parts alone,Nobody use chinese cars its plastic

Petty fellow.

1. Innoson doesn't important EVERY part of it's vehicles. You should take a tour of his factory it's free
Innoson has other factories that you don't know most of which are in Emene Enugu. Tyre factory, plastic factory, fabrication yard etc. Stop being stvp! d.

He also sublet others to local companies.

Business is comparative advantage thing. If he sees that he saves more money by subletting, he do that.

2. Car manufacturing is also called car assembling because you bring other manufactured parts and assembly them together to form a car.

Nobody uses Chinese car?. First Innoson isn't Chinese car. Chinese vehicles and heavy equipments are all over the world.

Most of equipments CCEC uses in Nigeria are Chinese equipments and vehicles. Ejoit

lexy2014:
You haven't answered my questions, you say you are asking me questions.

Is gas not readily available in the Niger delta area? Simple yes or no

What's the result of the gas in d ND? Very simple question

Is it gas that made Japan and Germany to blow? simple yes or no

I don't understand all this grammar you are speaking

how old are you please?. So Imo & Anambra that hosts the largest gas reserve, are they not Niger Delta?. Do you know how much Shell and seplat energy are sinking in Imo and Abia?.

Come straight with your opinion and stop asking rhetorical question.

Which Niger Delta are you referring to?.

There's huge gas in Niger Delta courstey of Imo, Anambra, Abia, Rivers, etc.

Japan and Germany blkw by leveraging on technology which they have and sensible governments invested in.
Same isn't the case here.

Come clean with your question or you stop qouting me.

integrity16:
What about the supply side, is the product CNG cheaper to produce?? If your answer is no then I don't see how it's going to be cheaper to buy.

we're not importanting Sir. Ok fact we have LNG depot in Portharcourt I think.

Besides, this vehicles showcased here hasn't been mass produced.

It's a call for investors to sink there money in LNG CNG business

eteba:
LNG....Liquefied Natural Gas

ok sir. Correction taken

lexy2014:
That's not what I asked you. Pls try again.

Is it gas that made Japan and Germany to blow?

Is gas not readily available in the Niger delta area? What's the result?

what made Japan and Germany to blow?. Technology?. In Nigeria, I can tell you for free SE is the home of science and technology. No government has shown interest to harness our technical know-how.

Is SE apart from Enugu and Ebonyi not part of Nigeria Delta?.

If what you're implying is that Niger Delta couldn't do much with her petrodollar, it's because of Nigerian factor.

Will the gas be different?. We keep our fingers crossed.

You didn't answer me, if Japan and Germany had this natural resources, won't they exploit it?

manutdrichie:
Is it cheaper?

the tricycle or the gas it uses?.

See for now, CNG is cheaper because there's no much demand for it here unlike pms and diesel.

In economics we say demand drives price.

The higher the demand the higher the price, on this I would say it's cheaper because the demand isn't high yet

prophetfire:
Same as the cooking gas at home?

that's not what I implied bro.
Cooking gas at home is LPG meaning Liquidified petroleum gas and contains methane while CNG contains propane.

What I mean by how do you get your cooking gas is that, just like cooking gas, people are gonna be setting up LNG/CNG stations. Some fuel stations I guess does that

Jemex003:
Igbo with desperation Bus, Car, Bike, Napep and Marwa hmmmm which be expecting Inn Bike and Train soon

you are of most men m!serable. Somebody is displaying his products and you're crying

Flier:
They should have partnered with Japanese not Chinese,Innoson is a Chinese car and no sensible person will buy it.A Road safety brought one to my see me few months ago it looks like kiddies toy car
He said he always fear anytime a trailer come across him on express because it always feels like its breeze want to blow the truck away
Its a complete plastic

you're being petty. Even in the far flunges of western world, Chinese products are used there too.

By the way, Innoson only imports engine from china

lexy2014:
Enquiry

Is that what made Japan and Germany to blow?

Is gas not readily available in the Niger delta area? What's the result?

SE case is very unique. A combination of human resources and mineral resources.

Are you saying if Japan and Germany had this natural resources they wouldn't exploit them?

prophetfire:
In which filling station are they available?

Where do you buy your gas? 😂

ibechris:
The largest ever found in the world,especially in Imo state.

Yeah bro

lexy2014:
Is that what made Japan and Germany to blow?

Is gas not readily available in the Niger delta area? What's the result?

what's the essence of this?

Kobojunkiee:
You may not but I do.

what's wrong with the comment point it out let's see please

ObongBassey:
You're calling Mynd44. Next this beautiful thread will be suppressed.

Uhhh. I sighted him here that's why I mentioned him.
If he likes Let him do anything he so wishes.
It's Seun that employed him

ejimatic:
Let me shake this table again!
If the National Stadium is renovated,whom should it be named after:
1. President Bola Ahmed Tinubu
2 Atiku Abubakar
3. Peter Obi
4. Peter Orogbo

What do you think? Some people will be sad again this afternoon!

It should be named national Bulaba stadium of Pablo Escobar

Kobojunkiee:
What do you mean by this for Pete's sake. Why exactly do you claim you need to depend on others for your own progress?

I don't really see anything wrong with his comment