GeneralDae:

I think we can bring back subsidy with this method. We sell enough Crude to Dangote and local refineries in dollars and then we keep a fixed price of 350 naira for the masses.

The dollar is not wasted because the local refiners like Dangote and NNPC (through PH refinery) would still convert some dollars to naira for their local operations

you realy need to start thinkin about dumpin dollars....
their are many nations emergin today ready to do business with anybody local currency to local currency....

saudi arabia is already doing it with some countries....

This is real environmental hazard.

Donchichi212:


You don't get it do you, who owns the natural resources his refining, is it no Nigeria, bro the price of fuel should drop to like 150# or 200# per liter. We really need to wake up in the country oo.

Meanwhile, the cost of refining fuel from crude is above N800 per liter, if not more.

Shey you go pay the difference?

Besides, your argument could be used to argue that you should sell everything in your provision store, assuming you had one, below N100. per item.

Things cost money. It is sad, but here we are. Things cost money.

GeneralDae:

I believe it's thesame reason Dangote is taking his time with PMS production because there is some form of reduced subsidy at the moment.

So it seems Dangote wants to sell Diesel and Aviation fuel first where there's no subsidy at all.

A subsidy wouldn't affect Dangote - he would get his full price regardless of whether it is the marketers paying or the government paying him. Producers don't bear the burden of a subsidy.

SmartyPants:


A subsidy wouldn't affect Dangote - he would get his full price regardless of whether it is the marketers paying or the government paying him. Producers don't bear the burden of a subsidy.

always the consumers....thats not hard to understand....

nairalanda1:




If you were a businessman, and you were selling yam you bought from farmer at N1500 per tuber, will you sell that same tuber at N200 per tuber to help the poor breathe? To help the masses breathe?

You will not, because your business will die.

Dangote needs to pay salaries(at the rate that his workers would not jakpa), pay taxes, pay for crude at international prices, pay for maintenance costs, etc etc. Expecting him to do all that and then sell fuel at N200 per liter because of the masses is a big joke.

Businesses are not charities. They exist to make profits, and to make more profits. They do not care about the masses, because if they let the masses set their prices, they would crash. If the masses were allowed to set MTN and Airtel prices, they would crash well well.

Hopefully, it would reduce the pressure on dollars, and hopefully this means the cost of transporting fuel falls. But the era of cheap fuel is over. NNPC is even now a private company self.

The funny thing is people will call me oppressor now. Ok. If a business cannot set its prices, how would it make profit for shareholders and workers? Shebi government go pay am? Lol.

chairman I thought one of the major excuse both past and present administration give to defend selling these products at high rate is because our refineries aren't working, we incur additional cost by way of exporting the crude to refine and these cost has to somehow be factored into pricing...now that we have one working refinery here shouldn't that eliminate the extra cost we were incurring from importation. Shouldn't that in some way reflect in the pricing?

Obiedun:
common man will be employed to work

Someone's got to do the dirty jobs.... But on a serious note, Dangote was built to bring the shareholders profits.

They could care less about the naira pump price of fuel. And they will demonstrate that soon.

SmartyPants:


A subsidy wouldn't affect Dangote - he would get his full price regardless of whether it is the marketers paying or the government paying him. Producers don't bear the burden of a subsidy.

It would well well.

Suppose government buys fuel at N900 per liter from Dangote, and sells it to the marketers at N200 per liter, so that they can sell to us at N300...what do you think Government would do, when Dangote's production cost goes up to N1200 per liter due to rising fuel prices?

They would be forced to either

1.Borrow more money to close the resulting deficit

2. Mount pressure on Dangote to keep selling to them at N900 per liter.

There is a cold reason why many people refuse to do legal licit refining in Nigeria. Because government is going to force them to sell at cheap prices under the guise of subsidy. That means they run at a loss.

And that means no bank would be mad enough to lend to them.

SmartyPants:


A subsidy wouldn't affect Dangote - he would get his full price regardless of whether it is the marketers paying or the government paying him. Producers don't bear the burden of a subsidy.

That's true if he is paid in dollars at international market price. If he is paid in naira, it's a different story.
He however needs more dollars to pay his foreign workers and to pay his debts. He may also be purchasing crude from IOC in dollars.

If I were the FG, I would pay Dangote in dollars then subsidize at a fixed price of say 350-400 naira.

its sad how we ridicule how obasango payed back all ur debts back then to be borrowin today like lunatics....

imagine obasanjo didnt achieved that back then how hard it would be today for nigeria to get loans....

Magnetic010:
chairman I thought one of the major excuse both past and present administration give to defend selling these products at high rate is because our refineries aren't working, we incur additional cost by way of exporting the crude to refine and these cost has to somehow be factored into pricing...now that we have one working refinery here shouldn't that eliminate the extra cost we were incurring from importation. Shouldn't that in some way reflect in the pricing?

LOL...we have never sold petrol at its true price in this country. Even now, we are still selling below what it actually costs.

That's why you think we have been selling it at 'expensive' prices.

Fuel should have been selling at N150 and above per liter in 2012 January. Not the N97 we were selling it then. And right now, it should be selling at N1000 or more, not the N580-700 we sell it at.

Magnetic010:
If this Dangote refinery doesn't in any way reduce the price of petroleum products in the country then it is of no benefit to the common man....

It won't have much reduction in price but it will save naira from further collapsing

nairalanda1:


Meanwhile, the cost of refining fuel from crude is above N800 per liter, if not more.

Shey you go pay the difference?

Besides, your argument could be used to argue that you should sell everything in your provision store, assuming you had one, below N100. per item.

Things cost money. It is sad, but here we are. Things cost money.

The cost to refine crude to fuel is about 800 naira per litre? That's not true bro. I think the marketers arrived at that figure because they factored in the cost of importation and landing. That's why they say landing price of fuel is 800 per litre. So when we eliminate the cost of importation and landing, logically fuel should sell lesser than what is it now.

heysquare:

It won't have much reduction in price but it will save naira from further collapsing

You want naira to stop collapsing...we have to produce more stuff for export. Crucially we have to produce more manufactured stuff for export because we can then set the prices.

Naira would not stop collapsing so long as we import , and so long as it is dependent on the price of crude oil.

I hope prices of crude oil commodities will reduce

nairalanda1:


It would well well.

Suppose government buys fuel at N900 per liter from Dangote, and sells it to the marketers at N200 per liter, so that they can sell to us at N300...what do you think Government would do, when Dangote's production cost goes up to N1200 per liter due to rising fuel prices?

They would be forced to either

1.Borrow more money to close the resulting deficit

2. Mount pressure on Dangote to keep selling to them at N900 per liter.

There is a cold reason why many people refuse to do legal licit refining in Nigeria. Because government is going to force them to sell at cheap prices under the guise of subsidy. That means they run at a loss.

And that means no bank would be mad enough to lend to them.

That's the beauty of a free market, and the deregulation of the sector brought about by the PIA. The government can't force you to do any such thing.

Magnetic010:
The cost to refine crude to fuel is about 800 naira per litre? That's not true bro. I think the marketers arrived at that figure because they factored in the cost of importation and landing. That's why they say landing price of fuel is 800 per litre. So when we eliminate the cost of importation and landing, logically fuel should sell lesser than what is it now.

In Niger republic, fuel costs above N1000 per liter....with even one domestic refinery that meets ALL their needs.

Dangote needs to pay back loans, he needs to pay world class salaries that compete with international standard, and he also needs to pay maintenance costs, and a host of other costs.

Fuel is not going to fall back to N200 per liter. No way.

Magnetic010:
The cost to refine crude to fuel is about 800 naira per litre? That's not true bro. I think the marketers arrived at that figure because they factored in the cost of importation and landing. That's why they say landing price of fuel is 800 per litre. So when we eliminate the cost of importation and landing, logically fuel should sell lesser than what is it now.

i dont think you will get it much cheaper in nigeria than in other nations....

wouldnt make sense....

fuel is not something that you take out of the ground already as a finish product....
you must process crude oil to get fuel....

dont forget maschines dont function only on crude oil....

the question you should be askin yourself is,why didnt this rubbish whites invent maschines that run directly with crude oil....

when you understand how sinister they are then things start to make sense....

justtoodark:


only a naive person calls his own country a zoo....

That's the simple reason why it's said that the truth is bitter . . . Especially to myopic people like you

nairalanda1:


Meanwhile, the cost of refining fuel from crude is above N800 per liter, if not more.

Shey you go pay the difference?

Besides, your argument could be used to argue that you should sell everything in your provision store, assuming you had one, below N100. per item.

Things cost money. It is sad, but here we are. Things cost money.

How much was a litre of petrol 9 months ago? Just 9 months ago, a litre of petrol sold for less than 200 Naira! One spaghetti was 140 Naira, now it is 700 Naira.
Now you are claiming things cost money. Every sane person can see beyond your hypocrisy and sycophancy!
Just kwantiniu!

Richtaiwo:
I thought gas flaring has stopped. Why the flaring? Can't it be converted to a useful purpose? I understand gas flaring produces excessive carbon monoxide (CO) which destroys ozone layer leading to global warming.

Just Google why flares are necessary at refineries, chemical plants etc

obesse:

How much was a litre of petrol 9 months ago? Just 9 months ago, a litre of petrol sold for less than 200 Naira! One spaghetti was 140 Naira, now it is 700 Naira.
Now you are claiming things cost money. Every sane person can see beyond your hypocrisy and sycophancy!
Just kwantiniu!

That person you quoted supported buhari from top to bottom start to end.

Why won't he be making such useless statements

obesse:

How much was a litre of petrol 9 months ago? Just 9 months ago, a litre of petrol sold for less than 200 Naira! One spaghetti was 140 Naira, now it is 700 Naira.
Now you are claiming things cost money. Every sane person can see beyond your hypocrisy and sycophancy!
Just kwantiniu!

Yeah, am a hypocrite because....I believe that a business must set its prices?

I love being that type of hypocrite.

As for you, go into government and set prices at N40 per liter to help the poor.

Leave hypocrites like me alone.

(FIN)

nairalanda1:


LOL...we have never sold petrol at its true price in this country. Even now, we are still selling below what it actually costs.

That's why you think we have been selling it at 'expensive' prices.

Fuel should have been selling at N150 and above per liter in 2012 January. Not the N97 we were selling it then. And right now, it should be selling at N1000 or more, not the N580-700 we sell it at.

sorry but you didn't answer my question sir; the only reason we have subsidy and what not and everything you just tried to explain is because we weren't refining crude locally( we haven't for a long time). Government understood that had these products been processed locally Nigerians won't have to pay #150 for a litre of petrol in 2012 like you pointed out. So they subsidize to keep the price at what they know the citizens will accept without much fuss; it's not good will neither it is just laziness and low desire to do the needful on their part(which is fix the refineries).

So now that we have a perfectly working refinery sir, at least you agree that we are safing money by refining it here rather than exporting the crude and then importing the finished product. It's basic economics we are safing something sir,it's common sense. So that amount we are safing shouldn't it at least reflect in the price of the product my good sir.

SeeWahala:


That's the simple reason why it's said that the truth is bitter . . . Especially to myopic people like you

sorry for you....

what is your plan now....??

destroy the zoo and join people that dont like your kind....??

GeneralDae:

That's true if he is paid in dollars at international market price. If he is paid in naira, it's a different story.
He however needs more dollars to pay his foreign workers and to pay his debts. He may also be purchasing crude from IOC in dollars.

If I were the FG, I would pay Dangote in dollars then subsidize at a fixed price of say 350-400 naira.

I suppose all of this can be solved if they simply traded crude for refined products like we were doing at some point in the past?

SmartyPants:


I suppose all of this can be solved if they simply traded crude for refined products like we were doing at some point in the past?

i dont think you produce that much crude to consider such a deal today....

Magnetic010:
sorry but you didn't answer my question sir; the only reason we have subsidy and what not and everything you just tried to explain is because we weren't refining crude locally( we haven't for a long time). Government understood that had these products been processed locally Nigerians won't have to pay #150 for a litre of petrol in 2012 like you pointed out. So they subsidize to keep the price at what they know the citizens will accept without much fuss; it's not good will neither it is just laziness and low desire to do the needful on their part(which is fix the refineries).

So now that we have a perfectly working refinery sir, at least you agree that we are safing money by refining it here rather than exporting the crude and then importing the finished product. It's basic economics we are safing something sir,it's common sense. So that amount we are safing shouldn't it at least reflect in the price of the product my good sir.

And even though we have a working refinery, for that refinery to work well, Dangote must be allowed to set whatever price he wants to set...so that workers are paid well, shareholders see returns on investment, maintenance costs are paid, expansion plans are carried out, etc etc.

Remember, Dangote refinery is not NNPC refinery, where government pays workers salaries, whether the things works or no.

(FIN).

justtoodark:


i dont think you will get it much cheaper in nigeria than in other nations....

wouldnt make sense....

fuel is not something that you take out of the ground already as a finish product....
you must process crude oil to get fuel....

dont forget maschines dont function only on crude oil....

the question you should be askin yourself is,why didnt this rubbish whites invent maschines that run directly with crude oil....

when you understand how sinister they are then things start to make sense....

lol i think that's like asking why don't they make cars tha run on water? Crude in its natural form isn't combustible, hence it's virtually impossible to make a car engine that runs on crude.

nairalanda1:


And even though we have a working refinery, for that refinery to work well, Dangote must be allowed to set whatever price he wants to set...so that workers are paid well, shareholders see returns on investment, maintenance costs are paid, expansion plans are carried out, etc etc.

Remember, Dangote refinery is not NNPC refinery, where government pays workers salaries, whether the things works or no.

(FIN).

ehen....your head dey their....

justtoodark:


sorry for you....

what is your plan now....??

destroy the zoo and join people that dont like your kind....??

No naw, that's a senseless plan

How about destroy the zoo and then stay with my own people who don't give a hoot about others and their kinds

Doesn't the plan above sound waaaaay better than the one you have in your head?

nairalanda1:




If you were a businessman, and you were selling yam you bought from farmer at N1500 per tuber, will you sell that same tuber at N200 per tuber to help the poor breathe? To help the masses breathe?

You will not, because your business will die.

Dangote needs to pay salaries(at the rate that his workers would not jakpa), pay taxes, pay for crude at international prices, pay for maintenance costs, etc etc. Expecting him to do all that and then sell fuel at N200 per liter because of the masses is a big joke.

Businesses are not charities. They exist to make profits, and to make more profits. They do not care about the masses, because if they let the masses set their prices, they would crash. If the masses were allowed to set MTN and Airtel prices, they would crash well well.

Hopefully, it would reduce the pressure on dollars, and hopefully this means the cost of transporting fuel falls. But the era of cheap fuel is over. NNPC is even now a private company self.

The funny thing is people will call me oppressor now. Ok. If a business cannot set its prices, how would it make profit for shareholders and workers? Shebi government go pay am? Lol.

Same excuses all the time when it comes to dangote. So how is this a benefit to the citizens that are still suffering from high price of things in the country nau. Sha be you people have been shouting that dangote refinary will reduce fuel pump price since it will be produce here and not imported