Anyone expecting Dangote Refinery or PMS from that Refinery to sell at a discounted price, lower than what we have now, is a deluded and ignorant person, and part of the problems we have in Nigeria
According to Nnameka Obiarael @ emekabl21 on his X handle, he said, Dangote is buying crude oil from the NNPC in Naira at the prevailing market-driven RDAS exchange rate. As of Wednesday, it was N1,617 / $1…
The price of a barrel of the Brent crude Thursday was $72.74 /N117,620.58 per barrel
A barrel of crude oil is 159 liters of petrol byproducts.
Out of a barrel of crude, we will get about 71.25 liters of PMS; 41 liters of gasoil; 15 liters of JET A fuel; LPG -7.5 liters of other products account for 26.25 liters of
If you are to divide N117,620.58 by 159 liters per barrel, it will amount to N740 per liter average prices of all the byproducts
Then you add Dangote finance cost, operating cost, administration costs, other costs plus margins
Then you will add the cost of vessels that will move it from the Dangote SBM jetty to the depots.
The depots will add their costs and margin
Then you will add the cost of trucking it from the depots to the filling stations across Nigeria
The station owners will add their coats and margins
Then the final consumers purchase it and use it to run their cars and generators to make profits
Jobs and incomes are created along the whole value chain….
Anyone expecting Dangote Refinery or PMS from that Refinery to sell at a discounted price, lower than what we have now, is a deluded and ignorant person, and part of the problems we have in Nigeria
SOLUTIONS…
The only procedure or model that will crash the price of the PMS in Nigeria, is for Nigerians to wait for the NNPC to sell off the two refineries in Port Harcourt and Warri under a special arrangement that will allow the new owners to have marginal fields that can allow them to produce crude in Nigeria, refine it in those refineries, [with additional 160,000 barrels new Refinery collocated in PH], under a clearly defined cost plus 30% margin arrangements, to be handled by a Bulk Petroleum Products Purchasing Company set up in Nigeria and owned by MOMAN, DAPMAAN and IPMAN
We have all the details worked out…
But, unfortunately, in Nigeria. Smart and honest Josephs are not allowed to help us execute their creative skills at problems solving
https://x.com/emekabk21/status/1831239208205164953?s=46