The price of fuel or PMS will not drop significantly if any because of Dangote refinery or any other local Refinery including those owned by the govt/NNPCL. We need to Wake up from our false hope .

Crude oil is priced on international price. Crude oil investment is done in dollars by oil companies. They will sell to Dangote at international price. Nigeria doesn't own all the oil produce in Nigeria. And also Nigeria need oil money at international price to be able to perform its budget and monthly federal allocation to states. So the Crude oil to Dangote and other local Refinery including those owned by by the Govt will receive crude at international price.

Dangote refinery and other local refineries including govt owned refineries are a major investment in dollars with alot of foreign bank loans and foreign investors and foreign technical experts

Local Refinery can only reduce the price of PMS by 50 naira per litre maximum which is the cost per litre in transporting PMS from Europe and Asia to Nigeria.

However, since there is already some subsidy in the current PMS at 600 to 700 naira, dangote refinery /Local Refinery won't reduce the price . it will only reduce the cost of subsidy by the govt by about 50 naira .

But dangote refinery will bring Jobs, Energy security and profit tax to Nigeria. And will also improve forex situation a little not significantly.

The only way Other companies can reduce the price is when federal government give them on low price.

johnmartus:
The only way Other companies can reduce the price is when federal government give them on low price.

Yes. But Nigeria govt can't do that because they don't even have enough to fund the Budget. Only a stupid president or a shallow leader like the former President of Venezuela will give crude oil at subsidised rate to refineries when it has over 30 percent Budget Deficit while using 45% of its revenue to service debt. Venezia did it and the country ended up much poorer.

Without oil, Nigeria would have been one big pack of shit.

One reason refining oil at home will have advantages is that the additional cost for importing other by-products as well as the profit margin accruing to the foreign sellers, will be saved. The 50 Naira you mentioned for transportation might apply just to PMS. So, what about AGO, kerosene, bitumen, wax, lubricating oil, and the other by products from the lump.

According to the US Energy Department, these by products make the production of up to 6,000 products possible. Nigeria will gain the forex for all these if we refine crude oil in Nigeria even by foreign companies.

Maybe, we need to brainstorm more on this Nlfpmod.

You guys have moved from the refinery is a scam to it will not impact the price of fuel.
It will reduce because a whole lot of overheads would be removed from the pricing.
Government will sell to local refineries in naira for local consumption as it was done before when we were refining our crude.
I know say na bad news una like pass but God pass una 😏

I still believe that the price will even rise more since Dangote about to involve in the oil market. Government can't determine the price any longer even NNPC will be privatized soon.

Naija2023:

Yes. But Nigeria govt can't do that because they don't even have enough to fund the Budget. Only a stupid president or a shallow leader like the former President of Venezuela will give crude oil at subsidised rate to refineries when it has over 30 percent Budget Deficit while using 45% of its revenue to service debt. Venezia did it and the country ended up much poorer.

Dangote refinery will reduce Refine products price. The landing cost of the refine products is high because of the high dollar rate.

When dangote start refining, we don't need dollar to buy PMS abroad. The saved dollars over time will strengthen the Naira.
When the Naira is strengthen to like 700naira to 1dollar petrol cost will automatically reduce

I want to make a statement of fact, Dangote will reduce the price of All the oil we import,infact I'm predicting something around 30-40% reduction in the prices.
There are factors we must consider, Nigeria oil prices mustn't be too low so as to encourage smuggling,if it's too low I'm sure it will be driven directly from the Refinery to our neighboring countries and sold for Huge profit.
On the issue of foreign exchange,I'm sure Dangote is not expecting Nigerians to pay for his products in Dollars, I'm also sure the NNPCL isn't expecting Dangote to pay for the crude oil in Dollars,but there will definitely be a % of the crude that will refined and sold to other African countries.
That's where Dangote will get his Dollars,Euro or pounds or Yen.
I read somewhere some months ago where even the Ghanaian Oil minister said they were eagerly awaiting the start of the Dangote Refinery,
https://leadership.ng/ghana-assures-nigerias-dangote-refinery-will-transform-downstream-sector/
I'm sure many African countries will patronize the Refinery and pay In foreign currency.
I'm also sure there will be a lot of swap deals with some airline companies who have their payment stuck in Nigeria,that should bring some foreign exchange too.
But like I keep saying what will you benefit now that the Refinery has started.
It's not too late,check my signature.....

The propaganda of 50 naira difference between imported petrol and locally refined one is ridiculous.

How can you import something from Europe and a price difference is 50 naira? It shows that they are artificially keeping the price high to rip Nigerians off.


Local Petrol in Nigeria should be at least 200 naira lesser than imported one.

Faiththatworks:
I want to make a statement of fact, Dangote will reduce the price of All the oil we import,infact I'm predicting something around 30-40% reduction in the prices.
There are factors we must consider, Nigeria oil prices mustn't be too low so as to encourage smuggling,if it's too low I'm sure it will be driven directly from the Refinery to our neighboring countries and sold for Huge profit.
On the issue of foreign exchange,I'm sure Dangote is not expecting Nigerians to pay for his products in Dollars, I'm also sure the NNPCL isn't expecting Dangote to pay for the crude oil in Dollars,but there will definitely be a % of the crude that will refined and sold to other African countries.
That's where Dangote will get his Dollars,Euro or pounds or Yen.
I read somewhere some months ago where even the Ghanaian Oil minister said they were eagerly awaiting the start of the Dangote Refinery, I'm sure many African countries will patronize the Refinery and pay In foreign currency.
I'm also sure there will be a lot of swap deals with some airline companies who have their payment stuck in Nigeria,that should bring some foreign exchange too.
But like I keep saying what will you benefit now that the Refinery has started.
It's not too late,check my signature.....

better oil dey your head!!

jmoore:
The propaganda of 50 naira difference between imported petrol and locally refined one is ridiculous.

How can you import something from Europe and a price difference is 50 naira? It shows that they are artificially keeping the price high to rip Nigerians off.


Local Petrol in Nigeria should be at least 200 naira lesser than imported one.

Same way local cement is 30% lesser in price right?

ivolt:

Same way local cement is 30% lesser in price right?

If we use #1200 exchange rate to import cement do u think a bag of cement is going to be less than the current price?

The advantage of Dangote refinery is saving of scarce forex.If both official and black market rate stabilizes at around 650-700,the of PMS cannot be more than #500/l

ivolt:

Same way local cement is 30% lesser in price right?

Go and import cement na. Let's see if it is only 50 naira difference with local cement.

10mobile:
Without oil, Nigeria would have been one big pack of shit.

One reason refining oil at home will have advantages is that the additional cost for importing other by-products as well as the profit margin accruing to the foreign sellers, will be saved. The 50 Naira you mentioned for transportation might apply just to PMS. So, what about AGO, kerosene, bitumen, wax, lubricating oil, and the other by products from the lump.

According to the US Energy Department, these by products make the production of up to 6,000 products possible. Nigeria will gain the forex for all these if we refine crude oil in Nigeria even by foreign companies.

Maybe, we need to brainstorm more on this Nlfpmod.

yeah it would be saved then used to finance frivolities like purchasing SUVs for house members, renovate residence, buy perfume, etc

Where is the billion saved from fuel subsidy removal by tinubu

Nonsense! if crude oil is shipped to another country for refining, it attracts shipping cost, insurance cost etc. the same cost is involved in bringing it back...these will be eliminated.

jmoore:

Go and import cement na. Let's see if it is only 50 naira difference with local cement.

importing cement is cheaper only that it is banned.

ivolt:
importing cement is cheaper only that it is banned.

Because 1 dollar is 200 naira? Dey play.

A lot of economic illiterates opening threads up and down, they don't even know what it meant to produce a product locally. They forget petroleum product import gulp over 35% of Nigeria forex.

Even a dullard should know that saving over 35% of our forex that should have been spent on import is a big relief on the national currency. Theoretically, after a year of continued local refining of petroleum it is expected that the nation currency will appreciate significantly.