Nlanalyst:

Kyari didn't study economics, he studied geology and earth science. He may not have a single idea of how these things work.

its a shame, then why mislead the country, that should make him resign. what a country, this is what we are going to face for another 8yrs

Freelancer2020:




They always think ppl are dunce, how can you compare the cost of a product made locally to the one refined in a foreign land, and they need to be careful tbh.

Exactly and raw materials for production is 100% locally source.

Godszilla:


https://punchng.com/dangote-ph-refineries-others-wont-change-fuel-price-nnpcl/

This sounds so unintelligent. He is telling us that subtracting the cost of shipping all the way from Russia or Europe or the US plus the cost of money (exchange rates) plus insurance will not significantly impact the final cost. Does he think he is speaking to infants.

gimakon2:
First an Increase in Minimum wage for Workers, then ensuring 94% stable power supply would have been good, then ensure good road transport network where commuters can have easy access to transport at fair rates, would have been better off, should they then decide to do Fuel subsidy, by then, you have solved three quarters of the citizens problems. Every Nigerian is paying everything by themselves as it stands, question is , why are we paying taxes and the need for Tax Clearance, when you cannot enjoy basic things as amenities. Tinubus Policies will give birth to a new style of Embezzlement.

What they succeeded in doing now, is bringing EndSARS part 2 to Nigeria.

Yoruba "Ronus" will not see it like this, Sense no day their head before. Shay na Peter Obi do this one?
Ozuor people.

Nice talk.
But that one no dey our politicians dictionary

hush15:



Price of operating the plant is not in naira. Government will not sell crude to dangote in naira. More importantly, dangote na front man. The real board of directors are these politicians. You think they don't know what they doing?

Dangote will also be exporting products to other countries at standard market price. So if marketers are buying from him at standard market price then cost of landing has been cut off.

LordAdam16:


Ogbeni, it will not be cheaper.

Some of our local refineries produce other petroleum products like AGO, Kerosene when they're partially operational.

They do not sell it significantly cheaper than the global market rate. Any savings go to the profit margin.

Like cement, like rice, like gasoline. Cheap gasoline is a thing of the past.

The public should insist on diverting subsidy funds to electricity generation so most people have little reason to care about gasoline prices like most people do not care about diesel prices.

-Lord

What is the current landing cost of petrol in Nigeria?

juvewalex:
He didn't explain why local production won't reduce fuel price , if you're producing in Nigeria, will there still be a landing cost ?

Nigeria government is never straight forward in dealing with its citizens.

Na still corruption be this anyways.

Dangote Refinery is also an importer of PMS, I doubt if much of local production will be going on at all times 24/7.

The price being the same is cover so that imported products purporting to originate from local Dangote Refineries can still be sold to Nigerians at a profit.

Otherwise, it does not make common sense that, an imported product that first left this country as crude wouldn’t be more expensive than a locally produced one.

motionarena:


Nice talk.
But that one no dey our politicians dictionary

At All. Na how to do useless life them only sabi , and met out several tiers and brand of suffering among the Citizens.
If the citizens can team up and work with one Mind like the first EndSARS, Nigeria will be a way better place. We have to Force them this time.

Na why i like South Africans o.

pocom35:

Obviously it is business.. would you want such big refinery to fail like the others?

Lai lai . No nation as corrupt as nigeria should have hands in anything business . Look at Transmission company of Nigeria , the only non privatized sector in the power industry . They are one of the major reasons for the poor power supply .

I just pray that the government encourages more private investors go into refining instead of trying to protect Dangote . ( the government bought a stake in the refinery )

juvewalex:
He didn't explain why local production won't reduce fuel price , if you're producing in Nigeria, will there still be a landing cost ?

Nigeria government is never straight forward in dealing with its citizens.

Na still corruption be this anyways.

I was trying to explain this to someone just yesterday. Dangote refinery can't automatically reduce petrol prices. Yes local production could lower the pump price, but not enough to give us 'cheap' fuel cos the total landing cost of petrol isnt made up of just the import logistic component.... There's also the raw material cost and then the massive exchange rate issue.

At the current cost of N500+, local production could probably push the price down to around N400, but that can happen only if the refining was by NNPC. Knowing who Dangote is, he'd want to make a decent profit.

Over time however, local production would translate to massive forex savings and excess forex would mean strengthening of the Naira. When the Naira strenghtens to about the N360/$ level, then perhaps pump prices would drop to about N300 (this should be about a year after Nigeria stops importing fuel).

Godszilla:


https://punchng.com/dangote-ph-refineries-others-wont-change-fuel-price-nnpcl/

Tinubu should just close down NNPCL or whatever and sell the company completely to foreign investors who will build refinery and stop telling us how refining company will sell.

Currently there's nothing this useless NNPCL is doing if they cannot refine crude oil for us. By June ending I expect our new president to scrap the useless NNPCL if he is LIEING to us about subsidy removal

Godszilla:


https://punchng.com/dangote-ph-refineries-others-wont-change-fuel-price-nnpcl/

Tinubu should just close down the uselesss NNPCL or whatever and sell the company completely to foreign investors who will build refinery and stop telling us how refining company will sell.

Currently there's nothing this uselesss NNPCL is doing if they cannot refine crude oil for us. By June ending I expect our new president to scrap the uselesss NNPCL if he is not LIEING to us about subsidy removal

juvewalex:
He didn't explain why local production won't reduce fuel price , if you're producing in Nigeria, will there still be a landing cost ?

Nigeria government is never straight forward in dealing with its citizens.

Na still corruption be this anyways.

In other words, it is the citizens that will now be subsidizing for government expenditures.

That is why they can never come up with any meaningful analysis or explanation.

abatically:


Dangote will also be exporting products to other countries at standard market price. So if marketers are buying from him at standard market price then cost of landing has been cut off.

You misunderstanding the concept behind landing cost.

Neway, sha know that dangote won't sell below is production cost which will be valued in dollars also. So it's all about the value of exchange rate. If the naira falls, fuel price will likely go up but if the naira gains, then there might be a drop. It's that simple. With the recent devaluation of the naira to achieve a unified fx rate, the prices will go up and remain stable for a long period of time but Nigerians shouldn't expect it to go less. Simple economics.

Lincton:
What do you expect from a monopoly market?

Go and get a licence and start your own refinery.
Govt has given licences to several operators.

Stop envying Dangote because he is not from your region. We know you, bitter people

We have old greedy animals ruling this country.

Heartless and stark selfish demons.

Dangote refinery is a cashcow for incoming politicians. They intentionally remove subsidy at this time to create high profit margin for dangote and they will inturn get a huge chunk from it.
Though a good one but not I the interest of the masses. Forget all those narrative they are selling to us. None of dangote business has direct positive impact on the masses.

Minjim:




They should check the statistics of countries that refine locally and see whether they don't sell cheaper locally. Why must ours always be different?

So Dongote won't make any difference, why all the noise about his refinery then?
These people are not being honest

Saying that the price of fuel will not come down when we switch from getting fuel from overseas refinery to getting fuel from local refinery is really insulting the intelligence of Nigerians.

But as someone else said, the higher the price of fuel, the better it will be for Dangote.

gimakon2:
First an Increase in Minimum wage for Workers, then ensuring 94% stable power supply would have been good, then ensure good road transport network where commuters can have easy access to transport at fair rates, would have been better off, should they then decide to do Fuel subsidy, by then, you have solved three quarters of the citizens problems. Every Nigerian is paying everything by themselves as it stands, question is , why are we paying taxes and the need for Tax Clearance, when you cannot enjoy basic things as amenities. Tinubus Policies will give birth to a new style of Embezzlement.

What they succeeded in doing now, is bringing EndSARS part 2 to Nigeria.

Yoruba "Ronus" will not see it like this, Sense no day their head before. Shay na Peter Obi do this one?
Ozuor people.

What does all of this tribalistic ranting have to do with the basic economic question at hand? The cost of a good in a free market is determined by supply as well as demand, and Dangote will charge exactly as much as he can get away with unless he is kept in check by competition. Besides, even if there were perfect competition, there is still a minimum cost associated with refining petroleum, and that cost is well above the current subsidized rate. All of this would remain the case whether it was Atiku or Obi in Aso Rock rather than Tinubu, so your pontifications are utterly meaningless.

When I said Dangotes refinery will increase fuel price I was criticized. Nigerian Oil sector is now a monopoly market. The prise is not coming down. The oil wells are privacy owned and the importation is privately owned.
Meaning the Nigerian people will slave and work for these people. Energy is means of control.
Enjoy your BAT.

Broadmind:
Dangote refinery is a cashcow for incoming politicians. They intentionally remove subsidy at this time to create high profit margin for dangote and they will inturn get a huge chunk from it.
Though a good one but not I the interest of the masses. Forget all those narrative they are selling to us. None of dangote business has direct positive impact on the masses.

The correct answer to all of the concerns you have is to allow unfettered competition, by demanding the removal of all licensing conditions for the importation of refined petroleum, and insisting that it be allowed in at the minimum tariff rate. That will provide the necessary incentive for Dangote to charge no more than the international market price. There is no need whatsoever for subsidies that ensure no domestic refiner can ever succeed under any conditions.

Freelancer2020:




They always think ppl are dunce, how can you compare the cost of a product made locally to the one refined in a foreign land, and they need to be careful tbh.

U dey mind them, he forgot that the petrol was shipped with it's additional cost.

The only way to solve this madness is for common man to rise and fight these heartless criminals. Save your country . Stop waiting for any messiah

Let the Refineries strt running first and we will see if things will change or not. . NNPC is about to collaps under this new dispensation. .Ishaa Allah

Alliswell248:


Nnpcl is now a private company same way as Dangote. No more free giveaway. Nnpcl wants to make profit, whether the product was sources locally or abroad. That is what he is saying.

Buhari sold Nnpcl to himself and closest cohorts and the same cabals also acquired / funded around 70% of Dangote refinery.

Therefore, he still milks and runs Nigeria significantly. Tinubu has met noting on ground and he want to create his own flows too.

I pity this nation.

God have mercy.

Lobatan! # sadistic govt of self serving THIEVES!
The shithole from fry pan to fire!

omohayek:

What does all of this tribalistic ranting have to do with the basic economic question at hand? The cost of a good in a free market is determined by supply as well as demand, and Dangote will charge exactly as much as he can get away with unless he is kept in check by competition. Besides, even if there were perfect competition, there is still a minimum cost associated with refining petroleum, and that cost is well above the current subsidized rate. All of this would remain the case whether it was Atiku or Obi in Aso Rock rather than Tinubu, so your pontifications are utterly meaningless.

Na so.
E day disturb you because i mentioned Ronus?
You people made us understand there are differences in Yoruba, there is Yoruba who are reasonable and wanted a better Leader who knows strategy and would not want to sell the future of their kids for nonsense, and the Ronus, who wanted a Leader who speaks their Language, and has absolutely no idea of what he is doing. Because I said something, you want to turn it to a brawl, fortnately, i dont have your time, you hear me. Wail all you like, one day you will become reasonable!

Your Messiah started on the wrong foot. Deal with it.
His advicers are Mediocre (if I say Mediocre, I am being fair), His advicers are wack and i need to be very blunt, Dude has absolutely idea of Nothing. If he knew something he would have done a research before metting out suffering on you and Me, I apologise for Nothing, and If you want me to say it, I would say it again, because I want you Ronus, to have sense of belonging when voting a Leader, you cannot continue to bring nonsense for us in this country, First una bring Buhari, now this one, Next una go bring Sheyi Tinubu way day use Security enter Toilet go shit__ and force him on us for us to Vote. When the suffer come, you go talk maybe e day ask if you be Igbo or Yoruba or Hausa. Sense no cost.

Truth is bitter, but someone has to say it.

We have all been fooled. Nothing will change with Dangote Refinery, from my I dept understanding of the dynamics, NNPC will be importing petroleum products from Dangote.

See it this way,
Dangote sited the refinery in a free trade zone, meaning he is not bounded to trade in Naira. NNPC will continue to sell crude to offshore, part or all of the forex realized from that trade will be used to pay Dangote for refining the crude given to him.

Dangote will charge NNPC in forex at the same
rate foreign refineries are charging for refining a barrel.

NNPC will evacuate the refined product and calculate landing cost to determine the price they will sell.

In all, Dangote will be the most beneficiary and this point to the reason he want the government to prevent another investor from building refinery.

juvewalex:
He didn't explain why local production won't reduce fuel price , if you're producing in Nigeria, will there still be a landing cost ?
Nigeria government is never straight forward in dealing with its citizens.
Na still corruption be this anyways.

God bless you for your brief analysis,bro!

To President Tinubu:
•If you desire to make a lasting progress, especially on most of the Ministries and Departments ( MIDAS) in Nigeria,there is urgent need to change their Structures,by changing them from top to bottom! Let FRESH Personnel handle them!
What has been the contributions of NNPC, CBN, NPA,Custom dept,NEPA/ DISCOS,etc, --it's Corruption and Curruption- with many don't even have Budgets and No Auditors- (both Internal and External) OR their Auditors have been Compromised!
•Nigeria is bleeding and Stinking in Corruption!
For instance,the present DISCOS - can never guarantee 24/7 Lights as being done in Ghana because the Structure is Rigidly built.Nigerians need 24-Hours Lights for INDUSTRIALISATION in this 21- Century,where American are sleeping in the Moon! Without Light,it is impossible!
•No wander ,the Nigerian Youths have one of the highest Unemployment Rate- 34% and are not Happy and are against this Country Establishment!
•We need a NEW Nigeria that will make Nigeria Great and it's Now!
President Tinubu- you must readily assert your Authority to let go those who are just feedings on Nigeria and don't be deceived by any Party Members praise singers.
Remember, when you turn around Nigeria,Nigerians will see it, and the World will see it ,like Modi in India and Kagami in Rwanda!
It's possible in Nigeria and avoid Nay have it syndrome!
•Look for Experts- Home and Abroad,who are ready to change things for the Good of the Land.
•Nigeria is greater than any Ethnicity or Regions,go for Excellence, afterall,you are called His Excellency ( HE)!
•Your 4- Yrs,has started NOW!
Nigeria will be Great again and we must determined to make it great now and for our future!
God Bless Nigeria.

Know what 9ja is, subsidy removal will be a big chop for some set of cabal in this administration while the masses will keep suffering!

Patrickker:
Very true. Save employment that they may grant, the prices are even going to soar. When Dangote bought Benue Cement Company Gboko for instance, we all jubilated here and thought prices were going to crash, but we unfortunately saw the prices doubled. Infact, a bag of Dangote cement in Benue where the product is produced costs more than it is when the same product is taken to Kano. The rich always have a way.

Just another way of raising his stakes as one of the richest men in the world. Plus or minus, it is good for the economy, but don't expect prices to crash.

Dangote is not the only cement Company in Nigeria. Stop giving yourself frustration just because the man is succeeding where others have failed.

Why didn't you join Dangote to bid for Benue cement? Because, it was an open bidding then.

We know the bitter people on this forum.
Any successful person who does not hail from their region is hated by them. It's in their DNA