Dangote refinery will sell petrol at international price, says FG

Published September 14, 2020

Eniola Akinkuotu, Abuja

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said when Dangote Refinery kicks off next year, it may not significantly reduce the price of petrol because the refinery will be selling at the international price.

Ahmed said this is because the refinery is located at the Export Processing Zone in Lagos State.

The minister said this on NTA’s ‘Good Morning Nigeria’ programme on Monday, which was monitored by our correspondent.

She said the only thing Nigeria would not need to pay is shipping cost.

Zainab said, “What we are doing is enabling the petroleum sector to actually grow. There have been a number of refineries that have been licensed for several years. None of them was willing to start refining under the regime that we had were fuel was controlled.

“The Dangote refinery is sitting within an Export Processing Zone so they are insulated from that. When we buy fuel from Dangote, we will be buying fuel at the international market price. The only savings that we will be making is the savings of freight which is shipping.

“But we will still have landing cost; labour cost and the marketers will still have to put a margin. These refineries being those that are supposed to have come to operate can now come in because they are assured that when they produce, they can sell at market rate and recover their investments and make some reasonable profits.”

She said the deregulation of the sector which led to the increase in petrol price was good for the economy as it would encourage investments in refineries.

Ahmed added, “It will mean more refineries will open, they will employ people and fuel will be available in different parts of the country and not just relying on the government refineries.

“Those refineries are old and even if we turn them around, we will not be able to operate them at optimal capacity, so while the NNPC is trying to rehabilitate them, we also need to encourage the private sector refineries to come on stream and even state governments that have the capacity.”

Also speaking, the Minister of State for Petroleum Resources, Timipre Sylva, said the pump price of petrol would not drop significantly even if Nigeria is refining crude oil locally.

He said the major determinant of the cost of petrol was crude oil and as long as it remains high, the cost of petrol will not drop.

Sylva said the only thing that could make local production cheaper is that there would not be a need to pay for shipping cost.

He said the cost of labour would not be too different from the international price because local refineries would be paying expatriates.

The minister added, “For now, our supply is coming mostly from imports as we all know. And that doesn’t really have an impact on the price as people would think. The only difference that will happen if our supply was coming from in-country would have been the freight price. But whether it is coming from outside or coming from within, it will be about the same cost because when you import, the only difference is that you will have to pay the freight. But it is the same cost of crude and whether you are refining or not, you will have to pay the market price for the crude.”

The Dangote refinery is expected to commence operations next year with a capacity of refining 650,000 barrels of crude oil per day.

https://punchng.com/dangote-refinery-will-sell-petrol-at-international-price-says-fg/?utm_medium=Social&utm_source=Facebook#Echobox=1600081840

Madam Zainab, concentrate more on NNPC and other Nigerian dead refineries. Stop famzing Dangote refinery. Shame no dey catch you

So Nigerian Government was actually waiting for Dangote Refinery to Start production.Very Soon Dangote will start lending Money to Nigeria.


Sad Indeed!

They should be ashamed of themselves "FG"

Govt has continually empowered him to enjoy some sorts of Monopoly in business for many years, and despite the concessions, rather than appeal to him to consider providing his services at a discount rate, you make bold statements on his behalf on how he will sell at an intl price. Just tell us u have a part sharing deal in place of what he will deposit in all your accounts from the intl benchmark selling price you will enable him sell by force. Rubbish.

So Fed Govt is now relying on Dangote refinery. What a mess

Maxymilliano:

Dangote refinery will sell petrol at international price, says FG

Published September 14, 2020

Eniola Akinkuotu, Abuja



https://punchng.com/dangote-refinery-will-sell-petrol-at-international-price-says-fg/?utm_medium=Social&utm_source=Facebook#Echobox=1600081840

When it comes to Fulani owned businesses, they allow price gouging and maximum exploitation of Nigerians.

If this was owned by another Nigerian, the same FG will insist that it will not sell above NNPC pump price.

That is the Fulani nepotistic Nigeria we have found ourselves in today.

And no one is asking what is the international price

Shame on Buhari
Shame on FG

I no even understand weting this minister Dey talk.

Why government can't sell those four nonfunctional refineries and invest the proceeds on increase capacity for fuel reserve.

And the suffering continues.

A refinery that is not yet operational, the government is already helping the owner to the determine the direction of his price.

Isn't this wonderful ?

Ok

FemolasticA:
They should be ashamed of themselves "FG"

Unfortunately, shame no dey dia Dictionary

Politicians, how does FG and Dangote meet? no wonder our refineries refused to work, just to inflict injuries on Nigerians

OreMI22:


When it comes to Fulani owned businesses, they allow price gouging and maximum exploitation of Nigerians.

If this was owned by another Nigerian, the same FG will insist that it will not sell above NNPC pump price.

That is the Fulani nepotistic Nigeria we have found ourselves in today.

...And the Yorubas will defend this fulani heartless expliotation to death, because of their hatred to other Southerners and Igbos in particular,... they have been harmered into the matrix where they can only defend the evil that flows out from the Fulanis and nothing else...

Maxymilliano:
And the suffering continues.

A refinery that is not yet operational, the government is already helping the owner to the determine the direction of his price.

Isn't this wonderful ?

guy believe me, there ar many secret behind that refinary. dangote is not the real owner of that refinary.

were they expecting Dangote to sell at local price before?

Is it an international crude oil?

Of course dangote must sells at international price. Afterall it is from multinational oil coy he will get the crude for. However the important thing is who determines how many barrels he gets, what of the other bye products of crude oil, will govt continuously devalue exchange rate which makes fuel expensive, will he be allowed to repatriate profits in dollars. because honesty speaking i don't see any benefit to Nigeria from dangote refinery. All i see is dangote getting richer. It will not stop repatriation of profits in dollars because dangote must pay oil coys in dollars, expatriates in dollars and also hedge his income in dollars

Useless Government, they are now Dangote’s mouthpiece. Dangote is just a front for money laundering.

State Capture!!

Nigerians please shine your eyes!

The northerners are slowly but surely enslaving the south!

I guarantee the prices in the north wont be the same as in the south!

Can Nigeria get any better?? So federal government is waiting for dangote's refinery!! What a shame.

SmartProf:
Govt has continually empowered him to enjoy some sorts of Monopoly in business for many years, and despite the concessions, rather than appeal to him to consider providing his services at a discount rate, you make bold statements on his behalf on how he will sell at an intl price. Just tell us u have a part sharing deal in place of what he will deposit in all your accounts from the intl benchmark selling price you will enable him sell by force. Rubbish.

Leaders of tomorrow thinking like leaders of yesterday.

Investors are in business to make money, compensate their shareholders, create jobs, expand government's tax base and grow economy, they are not in business to offer discounts to do father christmas and operate little or no profits.

Investors are not trooping into Nigeria to build refineries that they know we urgently need for decades because of detrimental government price control and interference, it's always been a turn off, a turn off that we can not sustain if we must grow and develop as a Nation.

We can not keep crying, moaning and blaming the FG for lack of jobs and the poor state of things in the country while still advocating detrimental policies that's crippling our job growth, investments, progress and development.

Nigerians love awoof and they are always trying to have it both ways. You can not keep admiring and comparing Nigeria with advance countries while at the same time refusing to practice what they practice in the same advanced countries. They are where they are today because they make sacrifices.

The price of petrol or gas in the US and other advanced countries is regulated by the markets, not by the government. When the price of crude oil shots up, petrol pump price shots up, when it drops, petrol cost drops without any government involvement.

The FG can not keep subsidizing what should be determined by market forces especially now that we don't have that kind of money and on top of that, investors won't invest their money in environments where governments controls everything, this is also the reason why the Nigerian power sector is rubbish.

Investors refused to invest in our power sector because of government subsidies and interference which prevents realistic business judgements and creates flawed ROI.

Nigerians must wake up and smell the coffee, the FG must remove the feeding bottles and smililac in our mouths and position Nigeria for realistic and sustain growth, we must stop expecting awoof from the government and start paying the real cost of goods and services if we truly want real growth, jobs, money and a good economy.


Btw, just because Dangote is a Nigerian doesn't mean he's father christmas, investors, banks and other people put money in his business, Dangote is a Publicly listed company that must answer to investors aka shareholders who are my parents, you and your parents, your neighbors and millions of hardworking Nigerians. They did not buy shares and invest in Dangote for their money to be awoof money, they need returns on their investments to buy food, pay rent, send their kids to school and for a better quality of life.


Nigerians need to get real and start reasoning above conspiracy theories and petting anti government sentiments.


We can not have it both ways.

on a serious note if I want to be the richest man in Africa I s being d President of Nigeria borrow 20trilllion dollars from 30 country combine then am too on the chat if Nigeria like make them pay the debt no be my business. owner feel say dabgote get money reach tinubu amd obj think twice

NwaNimo1:
State Capture!!

Nigerians please shine your eyes!

The northerners are slowly but surely enslaving the south!

I guarantee the prices in the north wont be the same as in the south!

A Northerner invested $15 billion in the south to create wealth, hundreds of thousands of jobs and new business here in the south for southerners including you and many people from wherever you are from in the south, but you still think the North is enslaving you?

You people just can not make sense to save your lives.

SmartProf:
Govt has continually empowered him to enjoy some sorts of Monopoly in business for many years, and despite the concessions, rather than appeal to him to consider providing his services at a discount rate, you make bold statements on his behalf on how he will sell at an intl price. Just tell us u have a part sharing deal in place of what he will deposit in all your accounts from the intl benchmark selling price you will enable him sell by force. Rubbish.

Lots of People don't know that starting from inception, the federal government has been providing him with some much needed funds through the centeral bank for that refinery project, just as they have reduced taxes on his cement firms because according to them, he helps with "road constructions"! Nobody even investigates the amount of solid minerals he lifts at will n places like kogi while maintaining a very excruciating monopolistic price regime on cement with his brother at BUA. . Now, after all those federal government help, they want to fool the people by using a non existent global price index to tighten their chokehold on ordinary Nigerians through exhorbitant fuel pump price. Dangote is a big problem to Nigeria and Nigerians.

Another hope of buying cheap fuel dashed by our darling daddy

If people expect him to sale below market price,then government most also sale to him below international price.

NGpatriot:



Leaders of tomorrow thinking like leaders of yesterday.

Investors are in business to make money, compensate their shareholders, create jobs, expand government's tax base and grow economy, they are not in business to offer discounts to do father christmas and operate little or no profits.

Investors are not trooping into Nigeria to build refineries that they know we urgently need for decades because of detrimental government price control and interference, it's always been a turn off, a turn off that we can not sustain if we must grow and develop as a Nation.

We can not keep crying, moaning and blaming the FG for lack of jobs and the poor state of things in the country while still advocating detrimental policies that's crippling our job growth, investments, progress and development.

Nigerians love awoof and they are always trying to have it both ways. You can not keep admiring and comparing Nigeria with advance countries while at the same time refusing to practice what they practice in the same advanced countries. They are where they are today because they make sacrifices.

The price of petrol or gas in the US and other advanced countries is regulated by the markets, not by the government. When the price of crude oil shots up, petrol pump price shots up, when it drops, petrol cost drops without any government involvement.

The FG can not keep subsidizing what should be determined by market forces especially now that we don't have that kind of money and on top of that, investors won't invest their money in environments where governments controls everything, this is also the reason why the Nigerian power sector is rubbish.

Investors refused to invest in our power sector because of government subsidies and interference which prevents realistic business judgements and creates flawed ROI.

Nigerians must wake up and smell the coffee, the FG must remove the feeding bottles and smililac in our mouths and position Nigeria for realistic and sustain growth, we must stop expecting awoof from the government and start paying the real cost of goods and services if we truly want real growth, jobs, money and a good economy.


Btw, just because Dangote is a Nigerian doesn't mean he's father christmas, investors, banks and other people put money in his business, Dangote is a Publicly listed company that must answer to investors aka shareholders who are my parents, you and your parents, your neighbors and millions of hardworking Nigerians. They did not buy shares and invest in Dangote for their money to be awoof money, they need returns on their investments to buy food, pay rent, send their kids to school and for a better quality of life.


Nigerians need to get real and start reasoning above conspiracy theories and petting anti government sentiments.


We can not have it both ways.

You did not get it right sir/ma. There is no competition here, so where will your market forces come in? Two thing must be clear;
1. In building the refinery, did Dangote enjoy any subsidy on the dollar rate? How did he source for dollars? If so, then he must pay back with interest because he benefited unhealthily.
2. You don't earn your income in dollar do you? if you earn naira like millions of Nigerians, then don't you think it is a good thing that to move from point A to point B tomorrow cannot be determined by any so called market forces in Nigeria? Hey, it will depend of the commodity market in the international market which is beyond your consumer behavior or whatever demand and supply you may wish to reference. It will be the third force and the major force.

I once said that you cannot dollarise your economy and expect growth, taken that government will stop spending dollar on fuel imports but what about graft? when govt becomes rich at the expense of the populace you can't achieve growth through diversification. At any given time over half of the country will be running on dollarised fuel for a country on the wheel? Common, its just sickening.

Nepotism and Monopoly loading...

Nigeria is a scam and mistake that must be corrected before it's too late....

Are you a NigerDeltan?
JoinTheMovement

Ibrahimmrfish:
If people expect him to sale below market price,then government most also sale to him below international price.

Oil is an internationally traded commodity so he can not buy below international price so he must sell at international price to remain in business.

Besides, the government can not do much because he's operating from a free trade zone.