The anger in the land is palpable following the latest fuel price increase. Amid all that, netizens responded with wry humour and paradox. Here are some posts.
Many others offered education and information, some needing citation or verification. Yet others punched directly. They include Odua People’s Congress leader Iba Gani Adams and senior lawyer Barrister Tugbiyele, who taught the Attorney General at the Nigerian Law School, while others dug up recent files.
1. It’s BACK: Bicycle
• Zero fuel consumption
• Optimum AC (Natural Air)
• Economical
• No engine servicing. E no kuku get engine.
• Zero documentation (Police, FRSC, EDSTMA no get person time)
• No overloading
• Space for a passenger (additional source of income)
• Easy to carry in case of traffic or unnecessary delay
• Insurance not needed.
• Good for health (exercise)
• Nothing to do with engine oil, engine filter, etc
• In case of brake failure, you can use your legs
• Parts affordable
• Classic because it’s the latest in town.
2. Refinery economics
When and at what price will citizens get PMS from the Dangote Refinery? While the NNPC and Dangote Refinery determined appropriate figures, citizens offered perspectives on social media.
A citizen wrote:
I asked Meta AI the question below and encourage you to do the same.
” Can a refinery give PMS free and be able to recover costs and still make profits from other crude oil products?”
Response below:
Yes, a refinery can give Premium Motor Spirit (PMS) at a subsidised or free price while still recovering costs and profiting from other crude oil products. Here’s how:
Refinery Economics:
1. Crude oil refining yields multiple products:
– PMS (gasoline), Diesel, Jet fuel, Fuel oil, LPG, Petrochemicals
2. Each product has a different profit margin.
Cost Recovery Strategies:
1. Cross-subsidization: Offset PMS losses with profits from other products.
2. Price differentiation: Charge higher prices for other products to compensate for PMS subsidies.
3. Economies of scale: Increase overall production to reduce costs per unit.
4. Operational efficiency: Optimize refinery processes to minimise costs.
Profitable Products:
1. Diesel: Typically has higher profit margins than PMS.
2. Jet fuel: High-demand product with attractive margins.
3. Petrochemicals: Specialty products with high value-added potential.
Case Study:
Assume a refinery produces:
• 30% PMS (subsidised)• 25% Diesel (higher margin)• 15% Jet fuel (high margin)• 30% Other products (fuel oil, LPG, petrochemicals)
The refinery can maintain overall profitability by cross-subsidizing PMS losses with profits from other products.
Challenges and Considerations:
1. Market dynamics: Fluctuating global oil prices, demand shifts.
2. Government regulations: Price controls, subsidies, taxes.
3. Competition: Other refineries, imports.
4. Operational risks: Maintenance, downtime.
Examples of Successful Implementation:
1. Saudi Aramco (Saudi Arabia): Subsidized PMS prices while maintaining profitability through other products.
2. Kuwait National Petroleum Company (Kuwait): Implemented cross-subsidisation to offset PMS losses.
Key Takeaways:
1. A diversified product portfolio is crucial.
2. Efficient operations and cost management are essential.
3. Market dynamics and regulations must be carefully monitored.
Would you like more information on refinery economics, cross-subsidization, or petroleum industry trends?
3. WHY DANGOTE FUEL IS WHITE!
By Abubakar B.
The reason PMS is white is that it is like water. Petrol has different colours.
When it is red, it means octane was added.
When it is slightly green, it means octane is somewhat very much.
When it is yellow, it means it has no lead. It shows that it is unleaded.
But when it is clear, like water, you should know that ethanol is used.
What ethanol does is that it improves engine efficiency and power.
Because ethanol has a good amount of oxygen, it lessens the carbonation in engines, reducing air pollution, which comes as carbon dioxide.
So, this is the best form of petrol
Comment: Awesome write-up here. However, a slight colour should be added for public safety reasons before we begin hearing funny and sad events, such as some people mistakenly dumping Dangote fuel for water and shovelling it down their stomachs. In a similar vein, LPG is odourless. Still, odorisers are dosed into the gas stream to efficiently and quickly detect leakages by human sense organs because the risk of explosion is imminent when the gas cloud is formed and undetected. Nigerians can be careless with fuel handling- Engr. Huessein, K.
DON’T BE FOOLED
1. Oct 2022, NNPC bought Oando filling stations and assets for USD324m
2. August 2024 NNPC Retail Ltd dissolves itself and hands over itself to OVH, owners of Oando.
3. September 2024 NNPC is the sole buyer of Dangote Petrol.
4. Who’s the buyer? NNPC Retail
5. Who is NNPC Retail? Oando
6. Oando will decide how much we will pay for Dangote petrol.
Gani Adams’ call out to Mr President
A critical message to President Bola Tinubu from the Odua People’s Congress leader, Iba Gani Adams, played well on various media platforms. Adams is the Aare Ona Kakanfo of Yorubaland and a renowned fan of President Bola Tinubu. He discarded chumminess in the message.
In his message, “President Bola Tinubu, Time is Going”, Gani Adams charged:
a. Mr President, to tell the truth without minding whose ox is gored, you have disappointed many Nigerians who thought you were the messiah they were waiting for. The facts are there to speak for themselves.
b. On May 29, 2023, when you became the Commander-in-Chief of the Armed Forces of Nigerians, the price of a litre of fuel was less than N200. Today, it is more than N1000. As the Minister of Petroleum, I ask you, what type of reform is this? In May 2023, the Naira to a Dollar was less than N740. Today, it is more than N1,600. Now, your two right-hand men, when you were Governor of Lagos State between 1999 and 2007, Wale Edun (Finance Minister) and Yemi Cardoso (CBN Governor), are in charge of the economy. What are the fiscal, economic and financial briefings they give you daily to convince you they know what they are doing in those two offices?
c. In August, many Nigerians came out to express their frustration with how you govern them. Today, some of those arrested have been charged with treason. In the Comity of Nations, who does that? Is that the way governments are overthrown, with placards? Human rights activists are being harassed by security agents daily, and Civil Society Organisations (CSOs) have become soft targets of sycophants who speak sweet words to their ears for selfish reasons.
d. The plain truth is that the recent fuel price increase by the Nigerian National Petroleum Company Limited (NNPCL), an agency under your office as the Petroleum Minister, is an attack on Nigerians. Your administration is becoming indifferent, insensitive, and unresponsive to the plights of millions of Nigerians who can no longer meet their daily needs. This is a brutal assault on Nigerians’ sensibilities.
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