He should be moderate in pricing but the price must reflect the true cost of production and genuine profit.

We're all begging oooooo

advocatejare:
May God bless Dangote for giving a refinery which we ease the burden of Nigerians unlike one businessman who established a brewery and turn all the youths in his state to alcoholics

Peter Obi and many others have refused to set up refineries because your government was, and up till now, is forcing the petroleum sector to sell at a loss...in the name of subsidy

That is why as at three years ago, out of over 20, some said 60 refinery licencees, less than 7 of them (incl Dangote) were doing something. Because no bank would lend you money to do refinery business in a country where government is setting the price of petrol . The losses would be so great that they won't see their loans repaid. And you know what happens to banks that carry lots of unpaid loans....

Because with a subsidy in place, refining in Nigeria is risky and unprofitable. Unless you are as rich as Dangote...to provide a colalteral for banks to lend you money...nothing for you.

Obi is rich, but not as rich as dangote. Most states are so in debt that no one would lend them money for refinery self...or why hasn't your own state too built refinery.? Are they as daft as Obi for your mind...or is it because refining in Nigeria is not profitable thanks to subsidy? I think it is the latter.

Or why didn't tinubu build refinery when he was governor of Lagos? Because at the end, no one would lend any state money for a venture that is bound to lose money because Nigerians want fuel at N40 or less per liter. People like you

Meanwhile, beer companies are allowed to sell beer at a profit. No one is forcing Guinness, NBL, Consolidated, etc..to sell beer at a flat price of N10 per bottle....instead they can increase prices when they want, and how they want...and make their profit. SO, why won;t a state government invest in a beer factory, when they know they will see their money back with extra?

Oga, if there was no subsidy since 1993, if it had removed, I bet you Obi would have built a refinery pronto. Because refining fuel would be now profitable in NIgeria to make sense. Banks and other bodies would lend them money well well. Refienreis would spring....


That is why you guys should stop supporting subsidy. It is why Oriental refinery did not get off the ground. At the end, no one wants to invest in a refinery that would refine fuel at N1000 and sell it at N580 or less....per liter

victorsola:
there is no international price for petrol, there is only a price range for crude and since he his buying it in naira and not in dollars . That is a big difference

Is he not selling in naira?

#300 per litre

If the petrol coming from Dangote refinery is so good that it last longer and vehicles and machine work more efficiently i think Nigeria should free Dangote even if he sell at 1000naira per litre as long as we get value for our money.

Everything depend on the quality

Haaa! Thank you o.
A lot of people just spew ignorance with so much confidence on this forum. International price for petrol? I have never heard of that nonsense before... Crude oil? Yes, I know of that one

Thanks for correcting his ignorance

victorsola:
there is no international price for petrol, there is only a price range for crude and since he his buying it in naira and not in dollars . That is a big difference

nairalanda1:


Peter Obi and many others have refused to set up refineries because your government was, and up till now, is forcing the petroleum sector to sell at a loss...in the name of subsidy

That is why as at three years ago, out of over 20, some said 60 refinery licencees, less than 7 of them (incl Dangote) were doing something. Because no bank would lend you money to do refinery business in a country where government is setting the price of petrol . The losses would be so great that they won't see their loans repaid. And you know what happens to banks that carry lots of unpaid loans....

Because with a subsidy in place, refining in Nigeria is risky and unprofitable. Unless you are as rich as Dangote...to provide a colalteral for banks to lend you money...nothing for you.

Obi is rich, but not as rich as dangote. Most states are so in debt that no one would lend them money for refinery self...or why hasn't your own state too built refinery.? Are they as daft as Obi for your mind...or is it because refining in Nigeria is not profitable thanks to subsidy? I think it is the latter.

Or why didn't tinubu build refinery when he was governor of Lagos? Because at the end, no one would lend any state money for a venture that is bound to lose money because Nigerians want fuel at N40 or less per liter. People like you

Meanwhile, beer companies are allowed to sell beer at a profit. No one is forcing Guinness, NBL, Consolidated, etc..to sell beer at a flat price of N10 per bottle....instead they can increase prices when they want, and how they want...and make their profit. SO, why won;t a state government invest in a beer factory, when they know they will see their money back with extra?

Oga, if there was no subsidy since 1993, if it had removed, I bet you Obi would have built a refinery pronto. Because refining fuel would be now profitable in NIgeria to make sense. Banks and other bodies would lend them money well well. Refienreis would spring....


That is why you guys should stop supporting subsidy. It is why Oriental refinery did not get off the ground. At the end, no one wants to invest in a refinery that would refine fuel at N1000 and sell it at N580 or less....per liter

I’m not supporting subsidy, Obidients were the ones claiming that fuel would have been cheaper if Obi were the president as if Obi has a magic wand!

Is N855 moderate enough?[b][/b]

Sometimes you guys think rushing to comment first makes you smart, unfortunately, in a bid to look smart you end up sounding foolish, has he asked Aliko to sell below market rate? or he's simply letting him know that given that overhead logistics cost in terms of shipping/importation would have been eliminated to a large extent, the wise thing to do is be magnanimous in his price?

MEEVEET:
What type of talk is this one... There is an international price for petrol

Unless Nigeria gives him crude at a price below international price... He can't sale below International price

ecolime:

If crude is supplied to him in Naira that means:

1. Sourcing for FCY and exchange rate pressure is off his neck.
2. International shipping fee is off.
3. Customs fees, etc. is off.

Why can't he then sell below international price?

The world will soon see Dangote for who he truly is.

Have you asked yourself how much it costs to ship petrol vs the actual
cost of the petrol itself?

For Dangote to sell below average international price, he must
have discovered a way to reduce his production cost far below international costs.

Anither563:
He should be moderate in pricing but the price must reflect the true cost of production and genuine profit.

You don't need to say that.
He is in business for profit and not charity.

Deefirm:
Sometimes you guys think rushing to comment first makes you smart, unfortunately, in a bid to look smart you end up sounding foolish, has he asked Aliko to sell below market rate? or he's simply letting him know that given that overhead logistics cost in terms of shipping/importation would have been eliminated to a large extent, the wise thing to do is be magnanimous in his price?

The statement makes no sense because dangote is not going to sale to the public but solely to NNPC who would then sale cheaper than they bought to the general public

Dangote would rather buy 100 million police vehicles than reduce fuel price.


The black man is just funny

He has nothing to say . Stay away

Dem dey beg for business ni?

olatade:
No Landing Cost, No VAT Charges, No Port Duty, No Forex Impediments and yet NNPCL Increase Fuel Price! The More We Try To Understand the Indices Of Nigerian Economy, the more confused we become.

cost of production in Nigeria is not same with cost of the imported one. Cost of finance in Netherlands and Malta is not same as in Nigeria etc. just like cement, if imports were allowed it will be cheaper than dangote.

At least the real amount that would be spent on subsidy would be known. The subsidy can subsequently be gradually phased off.

MEEVEET:
What type of talk is this one... There is an international price for petrol

Unless Nigeria gives him crude at a price below international price... He can't sale below International price

Int market activist ... int'L market price as it sounds regulates and determine the price crude are sold for at int'L trade scale as the name implies

Since Dangote is private, Nnpc would sell to dangote at int'l price ( naira equivalent) but however cost of producing locally is what will determine Dangote price

No matter the arguement anyone bring to this, local refinery guarantees lower price to import except Nigeria happens

chidiokay:



Int market activist ... int'L market price as it sounds regulates and determine the price crude are sold for at int'L trade scale as the name implies

Since Dangote is private, Nnpc would sell to dangote at int'l price ( naira equivalent) but however cost of producing locally is what will determine Dangote price

No matter the arguement anyone bring to this, local refinery guarantees lower price to import except Nigeria happens

Lmao... U guys are funny

It shall never be well with the wicked

Zionmdde:
Story for the gods

Dangote does business strictly for excessive profits. Cement price is an example.

Any smart person reading the news of NNPC increasing their pump price and at the same time dangote announcing the commencement of Petrol production and distribution will know its not a coincidence

Dangote is a very greedy business man, I hope he carries his wealth along when he leaves the earth

Meanwhile it's a thing of joy that finally petrol will be locally reduced. Let's hope it will have some positive effect on forex exchange.

But one thing I can vouch for is that he won't sell below 800 naira. Let's rather beg nnpc to start up their refinery

well, anybody that wishes can carry thier poverty when they leave the earth.

MEEVEET:
What type of talk is this one... There is an international price for petrol

Unless Nigeria gives him crude at a price below international price... He can't sale below International price

You are not intelligent enough to comment on this thread, go to children section.

ednut1:
cost of production in Nigeria is not same with cost of the imported one. Cost of finance in Netherlands and Malta is not same as in Nigeria etc. just like cement, if imports were allowed it will be cheaper than dangote.

if you are trying to postulate cost of production in Nigeria is not cheap, i agree

with the forex rate, freight cost and delivery cost in play, local manufactured goods will be lesser .. lets subject these to reality
think of one imported item you know more expensive than local product currently

chidiokay:


if you are trying to postulate cost of production in Nigeria is not cheap, i agree

with the forex rate, freight cost and delivery cost in play, local manufactured goods will be lesser .. lets subject these to reality
think of one imported item you know more expensive than local product currently

One example:
Imported ( smuggled)Frozen chicken vs live chicken. Cost of feeds have gone up, cost of borrowing is high, cost of fuel/ transport high.

Dangote got some of his crude from USA which was bought with FX, the machine/ spares for the refinery are bought with dollars, he is supplying his own energy vs those abroad that get from national grid. E no go cheap biko

MEEVEET:
What type of talk is this one... There is an international price for petrol

Unless Nigeria gives him crude at a price below international price... He can't sale below International price

Do you think they have any capacity for reasoning. Where was he when the FG was working out a workable price for PMS?

The official price is yet to be fixed, let's wait for the outcome of meeting of the President with the major stakeholders.

nairalanda1:


Peter Obi and many others have refused to set up refineries because your government was, and up till now, is forcing the petroleum sector to sell at a loss...in the name of subsidy

That is why as at three years ago, out of over 20, some said 60 refinery licencees, less than 7 of them (incl Dangote) were doing something. Because no bank would lend you money to do refinery business in a country where government is setting the price of petrol . The losses would be so great that they won't see their loans repaid. And you know what happens to banks that carry lots of unpaid loans....

Because with a subsidy in place, refining in Nigeria is risky and unprofitable. Unless you are as rich as Dangote...to provide a colalteral for banks to lend you money...nothing for you.

Obi is rich, but not as rich as dangote. Most states are so in debt that no one would lend them money for refinery self...or why hasn't your own state too built refinery.? Are they as daft as Obi for your mind...or is it because refining in Nigeria is not profitable thanks to subsidy? I think it is the latter.

Or why didn't tinubu build refinery when he was governor of Lagos? Because at the end, no one would lend any state money for a venture that is bound to lose money because Nigerians want fuel at N40 or less per liter. People like you

Meanwhile, beer companies are allowed to sell beer at a profit. No one is forcing Guinness, NBL, Consolidated, etc..to sell beer at a flat price of N10 per bottle....instead they can increase prices when they want, and how they want...and make their profit. SO, why won;t a state government invest in a beer factory, when they know they will see their money back with extra?

Oga, if there was no subsidy since 1993, if it had removed, I bet you Obi would have built a refinery pronto. Because refining fuel would be now profitable in NIgeria to make sense. Banks and other bodies would lend them money well well. Refienreis would spring....


That is why you guys should stop supporting subsidy. It is why Oriental refinery did not get off the ground. At the end, no one wants to invest in a refinery that would refine fuel at N1000 and sell it at N580 or less....per liter

I dont really know what you are all about, But the refinery business is a very viable business in a country where every household depend on Petrol as a reliable and alternative source of energy

what most lenders/ bank are weary of is the forces that be, conspiracy ploy and insincerity that chokes the oil sector its almost difficult for just anyone to breath around there, we saw what they did to dangote but Dangote survived cos he is a shark himself

profitability or vialiability is not why banks are weary of investing in refinery, the force against refinery is what they are avoiding
these imaginery forces are even major stakeholders in most of the tops bank/lender , if you understand how banks pull funds

Is the NNPCL increment of pump price for Dangote PMS supply which we are yet to see or what. what happens if he sells his product at a cheaper rate

MEEVEET:
What type of talk is this one... There is an international price for petrol

Unless Nigeria gives him crude at a price below international price... He can't sale below International price

Dont mind all this useless people. NNPC that has been importing fuel have they been moderate with the nations finances? Do you know the impact of their unannounced subsidy?

MEEVEET:
What type of talk is this one... There is an international price for petrol

Unless Nigeria gives him crude at a price below international price... He can't sale below International price

are u OK?, what's the international price for PMS? Dude if u have nothing reasonable to say, shut up... Nigeria is an oil producing nation as such fuel should be very cheap now that it is locally produced, can u compare the cost of refining it outside the country then importing it back? .. We are talking cost of fuel as relative to average income earner of the country and u open ur dirty mouth to say he should sell in international standard..