Lovely ..
Ipman said "fuel will sell below ₦200 if we refine locally.

Mynd44 said "no,fuel will sell for ₦515 if we refine locally".

Ipman are experts in the Nigeria upstream and downstream petrochemical industry .

Mynd44 is a blogger who has probably never seen raw crude or been close to an oil rig platform all his/her life.

Now let's do some arithmetic.

The cost of producing a barrel of bonny light crude oil in Nigeria ranges between $17-$20 per barrel. A barrel of crude oil is 168liters.

IOC (international oil companies ) spend $20 to drill a barrel out of the earth . And then sell it in the international market for $82 (current price). IOC's operating in 9ja include Mobil , siapem, nestoil , Addax and several other indeginous crude oil miners.

So we assume the Warri and portharcourt refinery are working optimally ..

After distilling a barrel of BONNY LIGHT CRUDE OIL , here are the derivatives you will get and their quantities.

Petrol - 90liters

Kerosene - 30liters
Diesel -70liters
Gas oil - 45 liters
Lubricating oil - 3liters
Lpfo- 20liters
Asphalt - 8liters[color=#006600]

The federal government owned refineries will receive crude oil at max $25 per barrel , piped directly to them.

Current I&E forex window $25x₦750= ₦18,750 for a barrel of crude oil to the refineries.

Let's see what we get after a fractional distillation of this barrel.

[color=#000099]Petrol @₦160/liter = 90liters x ₦160= ₦14,400

Diesel @ ₦400/liter = 70liters x ₦400= ₦28,000

Kerosene @₦250/liter= 30liters x ₦250= ₦7500

Let's assume a (NOTE: it's almost triple this price) ₦70/liter price for the remaining products amounting to 76 liters . = ₦70 x 76liters =₦5,330.


TOTAL AMOUNT in naira obtained FROM DISTILLING A BARREL OF BONNY LIGHT CRUDE =₦14,400+ ₦28,000 +₦7,500 +₦ 5,330 = ABOUT ₦56,000.

COST OF A BARREL OF CRUDE OIL TO THE REFINERIES IS ₦18,750.
Therefore projected profit will be

₦56,000- ₦18,750 = ₦37,250..


The refineries will still be raking in a massive profit of ₦37,250/barrel of crude oil(note it is more than this figure ) if it sells

Petrol @₦150/liter
Diesel @₦400/liter
Kerosene @₦250/liter...



As you can see IPMAN WAS ON POINT.

Story

If the local refineries receive Crude at $25 it is a form of subsidy as this price is a subsidized price.

That is what the blogger called Mynd44 said but your ego and arrogance wont let you see beyond basic politics.


Again, except the government wants to subsidise the price of crude oil to the refineries, there is no way petrol can be sold below 450 naira.

You are not the first smartypants to have done arithmetic.

Without subsidy, no way you can sell a litre of petrol below N400. Consider the production cost now even if refined locally

Good

helinues:
Without subsidy, no way you can sell a litre of petrol below N400. Consider the production cost now even if refined locally

Bring out your arithmetic argument, not writing vain comment.
You knew this and yet you trooped out at Ojota in 2012 to protest

Isobug:

Bring out your arithmetic argument, not writing vain comment.
You this and yet you trooped out at Ojota in 2012 to protest

Consider the production cost now even if refined locally

When did you troop to Ojota? Post the picture of me protesting against it in 2012

helinues:
Without subsidy, no way you can sell a litre of petrol below N400. Consider the production cost now even if refined locally

you didn't read the post did you? Since we are not importing crude oil, we can refine at a fixed cost price and then the distribution companies sell at a marginal profit rate maybe %60-100. It's not rocket science.

helinues:
Without subsidy, no way you can sell a litre of petrol below N400. Consider the production cost now even if refined locally

who told you.
Big pot, firewood, lighter, spatular, flexible pipes, catalysts and fire extinguisher. Make you diy petrol.