Former petroleum minister Prof Tam David West breaks down his analysis of the falsehood behind the fuel subsidy that has only enriched a few rich and selfish individuals in Nigeria. See insightful details.
1) One barrel of Crude oil = 42 gallons or 159 litres
2) Our Refineries (i.e 4) Installed (combined)
capacity = 445,000 barrels per day
3) Actual refineries capacity due to ageing
equipment = 30% i.e. 133,500 barrels per day.
4) 133,500 barrels = 21.2 million litres
5) Local required consumption (F.O.S) =
12millions litres
6) It means that even our MORIBOND refineries can actually meet our local consumption need of petroleum.
7) The cost structure of crude oil (i.e. Qua Iboe Crude Oil) production; – Findings / development – $3.5
– Production cost – $1.5
– Refining Cost – $12.6
– Pipeline/transportation – $1.5
– Distr/bridging fund Margin -$15.69
True cost of one litre of petroleum anywhere in Nigeria;
– Total sum cost = $34.8
– 1ltr cost = $34.8/159 litres = $0.219
– Naira equiv. 0.219xN160= N35.02k
– Add Tax N5 + N35.02 = N40.02
9) Let FGN refute the above composition and if not, they should tell us how they came about
N95/N85 litre.
10) Locally refined products cannot be sold at International price.
11) We really do not need FGN SUBSIDY as
there was NONE in the first place.
12) What is LACKING, is the WILL to enforce LAW ON CORRUPTION.
Pls re-post until it gets to the right quarters for their response; We still stand a chance as a
COUNTRY.
Analysis by Professor Tam David West, former
Petroleum Minister.

Is the man still alive, pls tell our baba to make minister of petroleum again

@current USD RATE OF $=N199.
1 Litre of petrol= 199x 0.219=N43.58/L

Keep posting NONSENSE

This really need to be spread....... If it's true....

No knowledge is a waste....

Am enlightened...

Kachiukwu needs to explain and refute this else he is a corrupt being working for a corrupt party and a corrupt president...

oboy

Everyone knows APC needs the change im fuel price to settle demselves...

How true is this information please.