lexy2014:


Ok. Pls tell me d truth about cooking gas and why d price keeps going up

Over 50% of LPG used by Nigerians is imported. That means we produce less than 50% of what we consume.

The LPG pump price is not regulated by NNPC so market forces determine the final price. That means the price is dependent on imports, same as diesel, Kerosene, petrol, cooking gas and all petroleum products we consume.

Until we produce 100% of what we use, the price of petroleum products will be determined by foreign exchange

Before this unpopular clique took over power, they were shouting it to high heaven that we didn't have business buying fuel at #87 because oil had fallen to about $90 per bbl. We were all deceived thinking that with the oil averaging $45 in their own tenure, we could have a #45/50 per litre regime. But see the turn of things. OK you claim anti- corruption is saving and fetching so much money, why are the refineries not functional? For your information, a barrel of crude when refined can yield over a $100. After all we heard recently from the president himself how much petrol is sold in the neighborhood countries, a great opportunity if we had leaders that think.
A beg, not everyone can be deceived.

fedorahat:

Crude is a raw material for petrol, if the price of raw material rises the price of the finished good will also rise.

Nnpc sells crude oil Nigeria as a country imports petrol these are two different things because nnpc does not sell the crude oil directly it only invest in JV with multinationals and marginal fields to drill the crude when they sell they get their profit back so what they are directly telling you now is that yes we are making profit from crude but don't expect us to use that profits to pay for your fuel we don't want to be directly involved in how you buy fuel which is a good thing because I might use two litres of fuel a day but he rich man will certainly use 15l who therefore is gaining more from the subsidy

Bennycollins:
I never thought we still had brainless people in this country. If you don't have what to say, keep quiet. Anyway you are not exempted from whatever. You will have sense eventually.

Brainless? What business do I have with you that you insult me.

If you had a point, why not say it instead of insults

fedorahat:

Because crude petrol and local cooking gas are one and the same thing gotten from the same process

Pls, take a look at figures from NBS for d months of September 2020:

average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Cross River (N4,598.50), Akwa Ibom (N4,562.50), and Anambra (N4,503.14).

States with the lowest average price for the refilling of a 12.5kg cylinder for LPG (Cooking Gas) were Kano (N3,560.00), Oyo (N3,638.46), and Zamfara (N3,700.00).

Pls notice d discrepancies. Is it d price of crude oil that created these prices?

fedorahat:
ok change the ifs to as, so that you can be pleased.
The reality still remains there is more profit to be made selling outside Nigeria for now

From what I discovered, nigeria also imports cooking gas. Quite shocking:

https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/

Bennycollins:
Before this unpopular clique took over power, they were shouting it to high heaven that we didn't have business buying fuel at #87 because oil had fallen to about $90 per bbl. We were all deceived thinking that with the oil averaging $45 in their own tenure, we could have a #45/50 per litre regime. But see the turn of things. OK you claim anti- corruption is saving and fetching so much money, why are the refineries not functional? For your information, a barrel of crude when refined can yield over a $100. After all we heard recently from the president himself how much petrol is sold in the neighborhood countries, a great opportunity if we had leaders that think.
A beg, not everyone can be deceived.

Firstly am not talking from a political standpoint but from a professional one.
What most of you don't understand is that Nigeria selling crude and Nigeria buying fuel are two different things.
Even if our refineries are working least it will do is reduce shipping cost which is negligible, without subsidy it won't impact much on the price of petrol, because crude is a raw material drilled by private companies who want to make a profit, they will only sell it at a slightly lower price if at all to Nigerian refiners, then input cost of refining tax , storage et Al and tell me if you think the price will be lower than it is for now .

adanny01:


Over 50% of LPG used by Nigerians is imported. That means we produce less than 50% of what we consume.

The LPG pump price is not regulated by NNPC so market forces determine the final price. That means the price is dependent on imports, same as diesel, Kerosene, petrol, cooking gas and all petroleum products we consume.

Until we produce 100% of what we use, the price of petroleum products will be determined by foreign exchange

It's funny that nigeria imports even gas. Obviously, buhari d minister in charge hasn't contributed anything to d sector. Meanwhile, find below data from NBS:

average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Cross River (N4,598.50), Akwa Ibom (N4,562.50), and Anambra (N4,503.14).

States with the lowest average price for the refilling of a 12.5kg cylinder for LPG (Cooking Gas) were Kano (N3,560.00), Oyo (N3,638.46), and Zamfara (N3,700.00).

Note d discrepancies. This doesn't reflect price of crude

lexy2014:


From what I discovered, nigeria also imports cooking gas. Quite shocking:

https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/

Because we don't have enough storage farms as I told you , so we pump directly to vessels or flare the gas.

fedorahat:

Because crude petrol and local cooking gas are one and the same thing gotten from the same process

I have been following your argument on cooking gas and it's faulty. The supply of cooking gas is not carried out by IOCs but rather by NLNG. So your theory of demand and supply does not cut it especially if you know the laws by which NLNG operates.
I suggest you find out instead of just applying general knowledge to defend what you don't understand

The exports should sell at 68$ per barrel while innit the country, the masses should buy way less less cheaper (almost free). This is the only damn resources we have

lexy2014:


It's funny that nigeria imports even gas. Obviously, buhari d minister in charge hasn't contributed anything to d sector. Meanwhile, find below data from NBS:

average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Cross River (N4,598.50), Akwa Ibom (N4,562.50), and Anambra (N4,503.14).

States with the lowest average price for the refilling of a 12.5kg cylinder for LPG (Cooking Gas) were Kano (N3,560.00), Oyo (N3,638.46), and Zamfara (N3,700.00).

Note d discrepancies. This doesn't reflect price of crude

Your report is a little mischievous and misleading.
That report says that average was achieved because Nigerians bought less gas due to a lower level of purchasing power, meaning some people might have sold at a loss, bear in mind that sale of gas is deregulated meaning there is no fixed price, you buy at what you can afford and sell at what you can afford to sell at, so if the price of raw material is high expect high selling price even if it is not uniform.

Agboriotejoye:


I have been following your argument on cooking gas and it's faulty. The supply of cooking gas is not carried out by IOCs but rather by NLNG. So your theory of demand and supply does not cut it especially if you know the laws by which NLNG operates.
I suggest you find out instead of just applying general knowledge to defend what you don't understand

Who said the IOC supplies cooking gas, the supply the raw material which cooking gas is refined from, if they NLNG does not receive any supply what happens.

lexy2014:


Kindly explain

Are you serious about not knowing why pump price increases with crude price increase? or are you just trying to feign ignorance here? The explanation is all over the place, why dont you just google it?
Aren't you aware Nigeria imports its petrol?
Aren't you aware the cost of this imported refined petrol increases if crude prices (it's raw material) increase?
When crude price increases, pump price can only be stable if the govt pays the difference (i.e. if govt subsidises)
Are you not aware govt has stopped paying subsidies?
So how exactly do you expect petrol price to be stable when crude price just increased and govt isn't paying the difference (i.e. subsidy)?

fedorahat:

Because we don't have enough storage farms as I told you , so we pump directly to vessels or flare the gas.

This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum

fedorahat:
Who said the IOC supplies cooking gas, the supply the raw material which cooking gas is refined from, if they NLNG does not receive any supply what happens.

Lol. Refined cooking gas? Where did you get that from?
Where is the refinery located if I may ask?

fedorahat:

Your report is a little mischievous and misleading.
That report says that average was achieved because Nigerians bought less gas due to a lower level of purchasing power, meaning some people might have sold at a loss, bear in mind that sale of gas is deregulated meaning there is no fixed price, you buy at what you can afford and sell at what you can afford to sell at, so if the price of raw material is high expect high selling price even if it is not uniform.

D fact that people bought less gas due to low purchasing power doesn't explain d discrepancies in price in different state within d same period. Even if there's no fixed price, it also doesn't explain d sharp difference in price in d north and south since u say d price of crude determines local price.

lexy2014:


From what I discovered, nigeria also imports cooking gas. Quite shocking:

https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/

Don't mind that dude. He's just saying nonsense. The reason we "import" cooking gas is because NLNG by the law establishing it is mainly for export. Tweaks being made to its operations enabled it to become active in the local market in the mid-2000s.
I put import in quotes because the so-called imported gas is still Nigerian gas which has been bought off NLNG terminals. You can see how crazy that is.

Iamgrey5:
More protest loading....

Our useless goverment is increasing Taxation when production is falling which has led to Massive inflation as producers have simply passed the excess cost (taxation) unto the consumers.

The same goverment is looking for ways to further compound the misery suffered by the Nigerian consumer by increasing the price of petrol which is the only stable and affordable source of energy available in Nigeria.

By the Time they increase petrol price÷

> Cost of Transportation increases

>Cost of production increases

> it will lead to a disastrous increase in the cost of goods and services that are already at a all time high.

Please bear with us the ruling class. Nigerians MUST bear the pains of increasing fuel price while we, the ruling class, enjoy the benefits of crude oil price increase.

Former CBN governor, Sanusi, said he has not bought fuel for over twenty years. So also all the thieficians and politicians don't buy fuel.

lexy2014:


D fact that people bought less gas due to low purchasing power doesn't explain d discrepancies in price in different state within d same period. Even if there's no fixed price, it also doesn't explain d sharp difference in price in d north and south since u say d price of crude determines local price.

I said a lot of things,
Supply and demand determines price
If crude or let me put it this way fossil fuel is high price of gas will be high.
Availability determines price
So which do you have issues with.

Agboriotejoye:

Lol. Refined cooking gas? Where did you get that from?
Where is the refinery located if I may ask?

Oga no vex where does cooking gas come from

lexy2014:


This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum

Wrong all gas come from an offshoot of drilling, it passes to a facility where gas water debris and pure crude is seperated.
What the production company decides to do with it is left for them, how they want to maximize their profit is left for them, some companies sell directly without passing through any process , some purify because they have the facility.
What is more profitable is what they do or they declare force majuire

fedorahat:

Oga no vex where does cooking gas come from

From crude oil

Agboriotejoye:

From crude oil

So if a company bdecides to sell all thier quota To a foreign company what happens.

fedorahat:

Wrong all gas come from an offshoot of drilling, it passes to a facility where gas water debris and pure crude is seperated.
What the production company decides to do with it is left for them, how they want to maximize their profit is left for them, some companies sell directly without passing through any process , some purify because they have the facility.
What is more profitable is what they do or they declare force majuire

Am not sure where u read my comment where I said that gas doesn't come from drilling. When u locate that comment, pls let me no. Pls read my comment again. It doesn't relate with ur response above:

This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum

fedorahat:

So if a company bdecides to sell all thier quota To a foreign company what happens.

That is what I'm correcting you for. Foreign companies/IOCs don't supply cooking gas in Nigeria. The supply is done by NLNG. Thought you said you're a professional.

fedorahat:

I said a lot of things,
Supply and demand determines price
If crude or let me put it this way fossil fuel is high price of gas will be high.
Availability determines price
So which do you have issues with.

U are saying 3 different things at once for just one thing which is d sharp difference in prices 4d same period.

States with the highest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Cross River (N4,598.50), Akwa Ibom (N4,562.50), and Anambra (N4,503.14).

States with the lowest average price for the refilling of a 12.5kg cylinder for LPG (Cooking Gas) were Kano (N3,560.00), Oyo (N3,638.46), and Zamfara (N3,700.00).

lexy2014:


Am not sure where u read my comment where I said that gas doesn't come from drilling. When u locate that comment, pls let me no. Pls read my comment again. It doesn't relate with ur response above:

This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum

You still don't get me
Whether LNG or LPG it comes from one source, and if the NGC is not getting supply because a company wants to sell all it's crude quota, price of LPG will be high.
I know the industry and I know their are companies that pump everything out, water, gas crude and debris.
Price is then determined by purity.

Also don't forget that we are short of forex and the country does not mind selling everything to raise money.

I don't know the profession you are talking about. I am an experienced professional in oil/gas myself. Are the imported products not stored? Don't the incure some duties?The crude we export, don't we incure any cost in moving it? Whether you understand it or not, we are better off exporting our own refined product. But our corrupt policy makers would rather the proper things are not done.

fedorahat:


Firstly am not talking from a political standpoint but from a professional one.
What most of you don't understand is that Nigeria selling crude and Nigeria buying fuel are two different things.
Even if our refineries are working least it will do is reduce shipping cost which is negligible, without subsidy it won't impact much on the price of petrol, because crude is a raw material drilled by private companies who want to make a profit, they will only sell it at a slightly lower price if at all to Nigerian refiners, then input cost of refining tax , storage et Al and tell me if you think the price will be lower than it is for now .

fedorahat:

You still don't get me
Whether LNG or LPG it comes from one source, and if the NGC is not getting supply because a company wants to sell all it's crude quota, price of LPG will be high.
I know the industry and I know their are companies that pump everything out, water, gas crude and debris.
Price is then determined by purity.

Also don't forget that we are short of forex and the country does not mind selling everything to raise money.

I get u and once again, u are making a comment that doesn't correlate with this comment:

This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum.

NB: take note of d first sentence immediately after d link

lexy2014:


U are saying 3 different things at once for just one thing which is d sharp difference in prices 4d same period.

States with the highest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Cross River (N4,598.50), Akwa Ibom (N4,562.50), and Anambra (N4,503.14).

States with the lowest average price for the refilling of a 12.5kg cylinder for LPG (Cooking Gas) were Kano (N3,560.00), Oyo (N3,638.46), and Zamfara (N3,700.00).

Like I said you only quoted a part of that article.
Law of supply and demand will determine price, because there is no price window.
Price of raw material will determine price

So places that have more demand and more purchasing power will have a higher average price because there is no price window.

fedorahat:


Like I said you only quoted a part of that article.
Law of supply and demand will determine price, because there is no price window.
Price of raw material will determine price

So places that have more demand and more purchasing power will have a higher average price because there is no price window.

Where u expecting to quote d entire article? If price of crude oil determines price, then u shouldn't be having price discrepancies. Are u saying cross river state has greater demand for cooking gas than Oyo state or Kano state?

lexy2014:


I get u and once again, u are making a comment that doesn't correlate with this comment:

This is d comment u made:

"The reality still remains there is more profit to be made selling outside Nigeria for now"

Hence this:

"https://m.guardian.ng/news/cooking-gas-marketers-blame-increasing-prices-on-importation/"

So ur theory that there isn't enough cooking gas because most of it is exported isn't true. What is pumped to vessels is LNG not LPG. There is d nigerian gas company (NGC) a subsidiary of nnpc whose primary responsibility is providing cooking gas( LPG) for nigerians. But just like d refineries, NGC is performing below optimum.

NB: take note of d first sentence immediately after d link

You are butressing my point, producing companies are selling more to foreigners because for them it is more profitable

Nigerian dealers are forced to buy from outside, pay shipping cost and other charges increasing the local price.