PMS Price: Dangote Refinery Will Sell At a Competitive and Profitable Price – Sowunmi
PMS Price: Dangote Refinery Will Sell At a Competitive and Profitable Price – Sowunmi
Crude oil is an international commodity, it does not have differential pricing. One of the major factor that will determine the price is the parity of the dollar to the naira. It is highly unlikely for the naira to continue to fall to dollar and the price of PMS will remain the same without one form of subsidy
Olabode Sowunmi, Chairman,…
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He is talking about comparison with foreign countries. Sorry, how is the economy of foreign countries when doing this comparison.
Secondly are we now buying our own resource within the same country, where it is refined to be supplied within the same country? Am I missing something or does his intelligence mean am stupid or he is more silly than I perceive he is?
There are 3 refineries that NNPCL has exclusive power to determine the pms price. PH, Warri and Kaduna refineries. Dangote is not one of them. We are not all kids in this game!
NNPCL should allow Dangote refinery to sell their refined products to the market without interference. We are about to see the fraud committed by government and NNPCL over the decades. Thank you.
Nah.. This analyst isn't only a professional analyst.. He is a professional liar.
Apart from standardizing cost of crude for a global market perspective… Because it is found locally, refined locally, should see an effect too.. This should mean that, as long as it is not exported or sold outside Nigeria, there should be a difference in price, small difference but will go a large way in the larger numbers.
Secondly.. Why is this guy lying anyhow… God!
Anyways, secondly, cost of import, do we understand why import is expensive, you import with large ships designed to keep the refined product in a good condition over the ocean for days to get to Nigeria..
The cost of running that ship, including temperature, operation and crew is crazy high.. Very high.. This in turn affects overall price of import..
As long as that ship is operational, it is consuming a lot of money… From when it's been loaded to when it's unloading.
So all this stupid talk is annoying..
Fuel should drop in price, mostly because crude is locally sourced and refined.. And we aren't introducing any new source of production, we are literally reducing while getting a better product in the end.
The least I feel it should be sound for us under NGN500 per liter, would have been lower, but due to the naira to dollar matter, this is why I suggested this.
Fingers crossed
That last guy most be yuroba accepting everything a bad government throw at him without protecting
Why has it been so impossible for anyone to breakdown the prices of imported PMS and locally produced PMS? So that we can make comparison
I just dey laff Nigerians, you can't sow rice and rep beans. You voted this man and the man you get. This fuel will not go down to 700 naira is going to be sold at 800niara last
The biggest hurdle we face is that the Nigerian government has made us believe that subsidy is a bad thing. What is the cost of petrol in Saudi Arabia? Across the world, they subsidise. Corruption is the issue. A fully transparent subsidy structure is actually what we need but we’re banging our heads on a brick wall just because we don’t want to address the criminal elements in our government. Even if we pay a subsidy to Dangote to reduce the price, marketers will come and do their own. Half the oil will be diverted to other countries and they will all pretend like they don’t know what is happening.
Is it really that difficult? It’s not that complex. Why must we ‘sell’ the crude to Dangote? Why can’t we do a swap for personal use? There was another guest that broke it down very simply the other week. Are we having memory loss?
Secondly, the shareholders of NNPC are the government, that is the people of Nigeria, stop separating the two. Did NNPC pay for the oil they’re selling? Since we want to talk about how companies must work for a profit, what company is given its goods free of charge. Don’t let these capitalists deceive you!!!!
NNPC is bunch of irregular Nigerians. Dangote should tell us what he is selling his fuel. Not NNPC
bode spoke very well and knowablely. Not all all families are the same
Kibbhjķ9lmmm
Just imagine the animals saying they'll buy with any amount
😂😂😂 lol
Interesting…. fact speaks for itself
He is very smart.
I still think the directors should have told Dr. Abati and Ayo to keep a serious face, this is a serious issue 😢
Around 11minutes, so analyst do not interpret. Rubbish!
It's pertectic situations in Nigeria today.Government have no genuine feeling towards the poor masses that Government supposed to good care of is a pity and Laughable
Why is nobody talking about the PH, Warri, and Kaduna Refinery??
Why are we focusing all our energy on this dangote Refinery?
Buhari said we will miss him. I believe it is official!
#LOCAL CRUDE IS SOLD IN NAIRA EQUIVALENT OF DOLLAR TO DANGOTE
Remember that FG ordered NNPCL to sell crude OIL to Dangote in Naira and AFriExim Bank ( Where FG borrowed $3bn from last year) will handle the payment. This only means Dangote Ref will not need to look for Dollars to pay but the product is priced in $Dollars.
Also note there is no pipeline with a tap delivering the crude oil to Dangote refinery from Escravos, it has to be moved by a vessel.
No discount for Dangote on crude even though he pays Naira, he will add cost of refining , logistics and profit to the determine price with NNPC.
Do you know how much Naira he paying for the Crude per barrel or do you know his cost of refining/litre?
But as time goes on and we stop importing refined fuel dollar, surely Naira will get stronger, and Dangote will pay less Naira for crude and so price of refined products will come down. This is the first step, Naira must become stronger when we stop importation of fuels and many other things.
Dangote staked almost everything he has to build the refinery. He can sell his products at any price profitable to his company. Other Nigerians who are not happy with his pricing should set up their own refineries to compete with him. We should stop telling people what to do with their money.
Too much talk talk people are starving. I don't believe in anything good from these people
If Dangote don't sell fuel at half the international price, then he is a thief;
The final cost of any product is determined by cost of raw material, production activities, and delivery then before profit. How can one juxtapose cost of transportation from say warry or PH to Lagos with that of Venezuela, Qatar or even Angola to Lagos .
2. A cleaner in the UK for instance is paid £11 GBP per hour. average work hours is 160 hrs/M that is £1,760 x #2,080 = #3, 660,800/M. That's the least a cleaner is paid assuming he/she is cleaning a low or normal risk environment not an oil company setting oo. For a factory such as Dangote refinery you should except something around #12m/M. Now, how many percent of local employees of Dangote refinery will be paid $1,000,000 monthly?
By the time you factor in the differences in cost of transportation, Salary and other production activities Dangote's final cost of production cannot exceed half cost of production in any European or Asian nation for the same product and quality. these are fact.
This is my problem with a lot of African professionals. They don't use their own God given mind and senses rather they rely solemnly on what the papers written for them by their Western masters says. Such people are more dangerous than politician in Africa's economic development matters because they are handy agents of the external powers often without even knowing.
Listening to this man, If you are not a businessman, with his fancy English language laced with professional jargons you will be completely sold. Make no mistake he is not trying to deceive anyone, he is only following the books completely convinced in his mind that is not only true but also the only way.
This is the clear difference between Africans and Asians. They trust there own intellectual abilities and wisdom. We borrow everything including common sense.
For us to develop economically under democracy we need a leader who understands through personal experiences what it means to create small businesses locally from the scratch.
This people are just stupid, you can check the price of petrol online to determine what will be the price of petrol in Nigeria 🇳🇬, but you cannot check minimum wage online…. Bed government
You are talking rubbish
Well said, Mr. Olabode Sowunmi. The petroleum industry must be regulated to avoid capitalist behaviour.
All this petro analysis is not necessary. Nigerians only want the government to bring the price of petro down to an affordable level. It will also help the economy and help elevate the Naira.
Why should there be a substantial increase in fuel price simply because the Tinubu Administration had agreed to a mere N70,000 in minimum wage! The government gave with the right hand, and takes back with the left hand. Why not reduce the price of fuel substantially to make the people happy and at ease; to help the economy. Our gullible politicians want to have their cake and eat it. They and their families want to be enjoying the enormous wealth of this great country country alone; regardless of how the states of the people who put them there are. It’s nothing to them building a N21 billion Vice president’s residence, buying expensive luxury cars for them. Why are they so wicked? This is bad governance.
I will vote Tinubu
If a year the price of a litre was 195, when the Naira was 400 to 1 USD, and now the price of a litre is 650 and the Naira is 1600 to 1, then one would argue that the price is lower today….Selling oil to Dangote in Naira helps to reduce the demand for forex which should help strengthen the Naira, but the price of oil and PMS will increase and decrease depending on the dollar price of oil. Its time for people to take basic economic 101 classes… Naija we hail thee…
Crude oil for local markets has nothing to do with international markets.
Countries like Saudi Arabia, Russia, UAE can sell petroleum locally at prices that differ from international prices.
Problem is, local production trying to price at international rates which is not appropriate. You can’t be pricing petrol in Nigeria at the same rate like Germany or the US, you do not have same financial capability, your citizens have low wages. Companies only speak about international markets so that they can increase prices to maximise profits
A 35% windfall tax is levied on unexpected profits made by oil and gas companies operating in the UK – a 35% windfall tax was imposed by the government. The proceeds were used to cushion the effects of the cost of living and inflation.
This guy is talking nonsense. How can the cost of production for 60000 PH refinery capacity almost be the same with Dangote 650000capacity? Is this what you understand in engineering economy?