SolomonGrandi:


You’re not well educated . Dangote that will soon be listed on stock exchanges? You funny o

You don’t understand Oil and Gas

how does dangote being listed in the stock exchange negate the points I raised?

since you understand oil and gas, kindly negate the following points.

because that is what NNPC told them to shout. it was the voice Jacob but the hand of Esau.

while you guys were running after marketers and accusing them of sabotage, NNPC was busy using landing cost as an excuse to inflate subsidy cost and steal.

that is why NNPC initially refused to give dangote crude because Dangote will sell without the bogus landing cost and NNPCs scam will be exposed.

so NNPC made a deal with dangote. we will give you crude but we will be the only ones to buy your fuel.

with that arrangement, NNPC can now maintain the price of imported fuel for locally produced fuel so as to cover up its ass.

that is why a few hours before dangote announced he was ready to supply fuel, NNPC fixed the price of fuel at N897 in order for them to maintain the margin which they were stealing as a result of the phantom landing cost

will helinues even read and comprehend, i doubt......

So, it is the same old story. It is well with my country

yes.


to


#300 per litre

and


dollar to #150

[quote author=Lexusgs430 post=131854262]Dangote is not a charity organisation and oil is a commodity traded in hard currency + Dangote owes an obligation to his shareholders........ 🤣😂

Not forgetting, he also got debt obligations to honour in $$$$...... [/quoteYes!! running into billions, insurance, maintenance , spare parts ,etc.

The only way the price of petrol can come down is through a stronger naira which will definitely not happen in the first four years of Tinubu,s regime.

Crimecity:
So in essence, Dangote and FG are the winners. Citizens have nothing there to gain or celebrate.

One would have thought that those saves from TFare and landing costs + import duties will reduce the cost of PMS at least.

Sighs

You people never want to hear the truth. All you want is cheap petrol which is devastating the economy.

The Naira would probably be $1- N500 if the Buhari had deregulated the price in his first year in office.

The massive borrowing the government undertakes to finance the subsidy is very inflationary. And where you have high inflation, you automatically have currency depreciation.

Why has government reached this agreement with Dangote? It is simply because there is still a subsidy. There's no way Dangote can purchase crude oil at the market and still make a profit. A litre of crude oil sells for 720 per litre. I haven't added refining cost.

To those who say government should first build refineries before they remove subsidies can see it does not work. Dangote hasn't refined petrol because of the subsidy. The subsidy needs to go first by fully deregulating its price which will give investors the signal to build refineries.

For foreign rice prices to be lesser in Nigeria to local rice prices, how will you think that Dangote fuel price will be lesser than imported fuel.

Nigeria case is not normal.

Lexusgs430:


If Ghana wanted to buy from Dangote, would they buy in naira...... So you see, Dangote got the knife and the yam, so he is slicing it whichever makes business sense........ 🙄🤣

No Ghana won't buy in Naira. That is why NNPC is buying all of Dangote refinery fuel and leave a good profit margin for Dangote. They are probably not even selling crude to Dangote. They supply dangote crude, dangote refines it and they buy it back at a margin. NNPC wants to make sure Nigeria has enough for local consumption and NNPC can even be exporting the finished product. But I do know Dangote will still make money from all the other byproducts like fertilizer, polypropylene, gas, tar etc. The immediate problem facing dangote refinery is how to get feedstock of 650,000 barren of crude per day for their operation. They will need to accept supply deal and later think about owning oil well and crude production plants.

We all need to pray for Dangote. This was a cartel business and it will never had worked if Dangote wasn't alive. Dangote broke the jinx and now more oil refinery will crop up.

[quote author=tefund post=131854564][/quote]

The Nigerian economy needs Dangote, the same way Dangote needs to Nigerian economy.......

It's simply a symbiotic relationship........ But the chief monopolist, remains king.....👑😂

Crimecity:
So in essence, Dangote and FG are the winners. Citizens have nothing there to gain or celebrate.

One would have thought that those saves from TFare and landing costs + import duties will reduce the cost of PMS at least.

Sighs

The analyst points are watery, in production no cost relieve can be undermined not to mention local refinery will eliminate avoidable cost such

double freight .. we import and export back
double uploading &offloading from vessel cost
Overseas freight miscellaneous and taxes


A decline in dollar demand should strengthen the naira, dangote buying crude in naira from nnpc at int'l price ensures our turnover woull be an equivalence of it dollar worth, the most important thing is "Revenue" is made and we are saving some avoidable cost
Nigeria obligation to export crude is a strong source to keep our Fx reserve stable, over 60% of fx demand is expended on fuel importation, with that out of the equation that ensure surplus Fx supply to meet other needs ...

That Nigeria will sell crude and sell refined crude at int'l market is a double boost to our GDP, its a big brnefit for Nigeria

Have you seen how pure n clean dangote fuel his, that means Nigerians wil be freed from bad & inferior fuel that spoil our engines that is a win for Nigerians
huge scale of Job employment ... thats a win for Nigeria
dangote refinery contribution to power grid thats a win for Nigerians

Only the govt / Nnpc touch can throttle the benefits of dangote refinery

Mayflowa:


No Ghana won't buy in Naira. That is why NNPC is buying all of Dangote refinery fuel and leave a good profit margin for Dangote. They are probably not even selling crude to Dangote. They supply dangote crude, dangote refines it and they buy it back at a margin. NNPC wants to make sure Nigeria has enough for local consumption and NNPC can even be exporting the finished product. But I do know Dangote will still make money from all the other byproducts like fertilizer, polypropylene, gas, tar etc. The immediate problem facing dangote refinery is how to get feedstock of 650,000 barren of crude per day for their operation. They will need to accept supply deal and later think about owning oil well and crude production plants.

We all need to pray for Dangote. This was a cartel business and it will never had worked if Dangote wasn't alive. Dangote broke the jinx and now more oil refinery will crop up.

What is the present level of consumption of PMS....... 🤣😂

I think there is an unspoken reason why the FG, through NNPC, has taken two steps recently as it concerns energy crisis.

One is making NNPCL LIMITED the sole buyer of petroleum products from DR.
Secondly, is the recent covert hike in the price of PMS.
I thought over this and came to the conclusion that, perhaps the FG is trying to withdraw subsidy payment on gasoline or at least reduce it to a sustainable level.
It has become imperatives to do this because, the FG can longer bear the burden of subsidy.
Coming to think of it, the landing cost of petrol currently is around N1200/L. Comparatively, DR. should ideally sell lower than this price after taking into the cognisance, the lower cost of production since its an indigenous company. I believe, in which ever perspective one decides to examine this, the truth is, the cost of production here is inveriably lower than it should be for foreign companies for a number of reasons;
One is the fact that, raw material are sourced in naira, the cost of shipment and duties on crude is already out of the way, and other related wavers.

Hence, in order to eliminate subsidy or at least reduce it to the minimum, the federal government had to prepare the market and the minds of the citizens by arbitrarily jacking up the price through NNPC to N897/L. At this rate, the price is almost close to or exactly what should be ideal for D.R product and there would be little or no need for subsidy expenditure.
This is what I think is the unspoken truth that FG has not been bold enough to tell Nigerians, since they have not been very open in their subsidy payment ab initio.

Realdeals:
Somehow flawed analysis
At what percentage FX loss will selling crude oil in Naira to Dangote refinery cost Nigeria, compared to importing refined fuel in USD? I'm sure it is minimal.

Besides, there are other crude oil products that are being imported that will now be supplied by DR. Also, most of Dangote refinery export earnings which will be in USD will be domiciled in Nigeria, making it available in the FX market.

Your analysis is also wrong. I am aware Dangote is doing a lot of propaganda through the new Public Relations Manager. 5 or more people can be in the same location with different accounts defending the same cause.

I wish him well and I hope the Prophecy delivered by Prophet Hezekiah at Erio Mountain will not come to pass.

Standing5:
We already know Mr Analyst.

The crude sold in Naira means less crude in normal exchange for forex or dollar and thus lower forex inflow. But once Dangote starts refining beyond local consumption capacity, which may reduce very drastically if smuggling stops, it means the refined crude will earn more forex than it usually would have in govt hand as raw crude oil because value has been added and it sells for higher. It is still a win on the long run as long govt doesnt make petrol artificially lower than in neighbouring countries.
Heard the FEC is the one dictating final prices and that points to an arrangement where FG bills dangote for crude lower than intl rates just to allow it come out as refined crude product lower than market rates while preserving Dangote flat profit margin. Dangote is now acting a lot like public refineries should under FG on a level playing field.

Have you thought about, Nigeria will be having multiple income in all of these
NNPc will export crude .. revenue $
dangote capacity affords him to export ... revenue $
other deriatives from crude refining ... will be sold both locally & int'l

All of these are solid boost to our GDP, that our revenue will boom negates your reservations

Crimecity:
So in essence, Dangote and FG are the winners. Citizens have nothing there to gain or celebrate.

One would have thought that those saves from TFare and landing costs + import duties will reduce the cost of PMS at least.

Sighs

u know the variety of by-product gotten from crude oil is much aside the pms .if the crude oil is refined here and the byproducts sent out for sales it will earn us more forex and in the long run I feel the pressure on dollars will reduce.this will make the naira gain value and the attendant reduction in price of goods and services .
But Nigeria get as e be sha

chudez0147:
Dey play . As if Dangote is not a business man.

I tell people until Dangote sale for at least #400 there is nothing there to celebrate about his refinery.

You also talked about the byproducts left in malt as if they don’t pay fg for them.

Tell that to those Nigerians that will get job from dangote refinery..

lexy2014:


how does dangote being listed in the stock exchange negate the points I raised?

since you understand oil and gas, kindly negate the following points.

because that is what NNPC told them to shout. it was the voice Jacob but the hand of Esau.

while you guys were running after marketers and accusing them of sabotage, NNPC was busy using landing cost as an excuse to inflate subsidy cost and steal.

that is why NNPC initially refused to give dangote crude because Dangote will sell without the bogus landing cost and NNPCs scam will be exposed.

so NNPC made a deal with dangote. we will give you crude but we will be the only ones to buy your fuel.

with that arrangement, NNPC can now maintain the price of imported fuel for locally produced fuel so as to cover up its ass.

that is why a few hours before dangote announced he was ready to supply fuel, NNPC fixed the price of fuel at N897 in order for them to maintain the margin which they were stealing as a result of the phantom landing cost

Please show us how landing cost is generated ? lol

So what was happening to those 'many' by-products of crude oil before now? Which pocket captures the proceeds?

We'll just have to wait and see. Hopefully it does so the fuel price would not be going higher without control.

spiSeyi:
Forget the paper talks with big grammars, and let's face the reality. With the recent script of fuel hike played by NNPCL and FG the Dangote refinery is a tool for siphoning Nigerians to pay for the humongous loans borrowed by the FG to finance their lavish lifestyles. Why would pump rise just increase overnight, and yet NNPC peg their pump price @ 800-850 after loading from the Dangote refinery.
APC as made it their modules operandi to loot by making the president the Petroleum Minister, and using Kyari (NNPCL GMD) as a cover.
APC + NNPCL GMD are the worst thing that happened to Nigerians . It's only a corrupt government that will retain the NNPCL GMD, sell crude to local refinery in local currency and still sell in US Dollars. Above, all the answer is a NO as long as the NNPCL is the sole distributor and PBAT is the Petroleum Minister. And any president that failed to privatize NNPCL is worse than ABACHA

if you understand it is a scripted, then you suppose know the overnight increase in pump rise his to pave way for acceptance of dangote price that will be a little below
Tinubu is a script writer swith that man everything is premeditated to dribble Nigerians

How does hiring five PR and a prophecy invalidate my statement?

professorPABX:


Your analysis is also wrong. I am aware Dangote is doing a lot of propaganda through the new Public Relations Manager. 5 or more people can be in the same location with different accounts defending the same cause.

I wish him well and I hope the Prophecy delivered by Prophet Hezekiah at Erio Mountain will not come to pass.

If you are talking of Crude you may be right. I don't know if he sells that in Naira

If you are talking of Diesel which concerns us now - you are wrong.

Dangote does not sell PMS in Naira.

Don't argue with me unless you are among those in Dangote who deals with marketers who buy PMS.

My contact is there and they initially were selling in Naira but now in Dollars.

StPete:


I disagree

Asides the transportation cost, there are also clearing costs at the ports and other fringe costs in offloading the products into NNPC from outside the country.

Moreso, the crude can be bought in Naira (not Dollar) thereby reducing the pressure of acquiring dollar for external trade between Marketers and the external Refineries who do not trade in Naira. Dangote refinery buys in Naira and also sells in Naira

This analysis is faulty because it makes you believe that Dangote is the sole buyer of Nigeria's crude output. If the FG grants a $ purchase waiver to Dangote and still receive $ for crude exports to other countries, how does the country lose fx, as claimed by Kalu Aja?

Crimecity:


Kalu Aja

He mentioned FX loss from Dangote purchasing crude in naira but failed to mention FX savings from NNPC purchasing PMS from Dangote in same naira; PMS that would have been purchased from foreign refineries in dollars.

Crimecity:
So in essence, Dangote and FG are the winners. Citizens have nothing there to gain or celebrate.

One would have thought that those saves from TFare and landing costs + import duties will reduce the cost of PMS at least.

Sighs

Good morning

spiSeyi:
Forget the paper talks with big grammars, and let's face the reality. With the recent script of fuel hike played by NNPCL and FG the Dangote refinery is a tool for siphoning Nigerians to pay for the humongous loans borrowed by the FG to finance their lavish lifestyles. Why would pump rise just increase overnight, and yet NNPC peg their pump price @ 800-850 after loading from the Dangote refinery.
APC as made it their modules operandi to loot by making the president the Petroleum Minister, and using Kyari (NNPCL GMD) as a cover.
APC + NNPCL GMD are the worst thing that happened to Nigerians . It's only a corrupt government that will retain the NNPCL GMD, sell crude to local refinery in local currency and still sell in US Dollars. Above, all the answer is a NO as long as the NNPCL is the sole distributor and PBAT is the Petroleum Minister. And any president that failed to privatize NNPCL is worse than ABACHA

Bros that price is still going to N1200. Get ready for it . If Dangote is to sell its refined pms profitably, they will allow him sell it at unregulated price. That's the gimmick behind the price increases you have witnessed recently.

at 80 dollars ...a one liter of crude oil is 800 naira before e reach dangote refinery.....one barrel is 159 liters...do the maths at 1600 naira per dollar....which miracle wan happen...

spiSeyi:
Forget the paper talks with big grammars, and let's face the reality. With the recent script of fuel hike played by NNPCL and FG the Dangote refinery is a tool for siphoning Nigerians to pay for the humongous loans borrowed by the FG to finance their lavish lifestyles. Why would pump rise just increase overnight, and yet NNPC peg their pump price @ 800-850 after loading from the Dangote refinery.
APC as made it their modules operandi to loot by making the president the Petroleum Minister, and using Kyari (NNPCL GMD) as a cover.
APC + NNPCL GMD are the worst thing that happened to Nigerians . It's only a corrupt government that will retain the NNPCL GMD, sell crude to local refinery in local currency and still sell in US Dollars. Above, all the answer is a NO as long as the NNPCL is the sole distributor and PBAT is the Petroleum Minister. And any president that failed to privatize NNPCL is worse than ABACHA

Who knows

swagifted:
at 80 dollars ...a one liter of crude oil is 800 naira before e reach dangote refinery.....one barrel is 159 liters...do the maths at 1600 naira per dollar....which miracle wan happen...

The crude is sold to him in Naira and he will sell to other countries in USD. Why shouldn't he sell back to Nigerians in Naira, if Dangote will sell to us using USD benchmark then the FG should sell to him in USD if he can't sell it to Nigerians using the Naira benchmark

AfonjaMozlem:
Tinubu will still tax it
Petroleum Consumption Bill (PCB)

Watch

dododawa1:
yes.


to


#300 per litre

and


dollar to #150

Amen