Rhino.5dm:

How can i be exchanging banters with this character caught in the habit of making wild and unfounded claims? Damn! I have descended very low, indeed.

OK! Blondie, is the the world still flat?? Gadamit!

Bloodyfool!!!! you dare not exchange words. You've long descended so low when you started licking Pastor Bakare's boots. Bloody praise singers. Go about carrying pastor's suitcase and making Pastor a demi god.
Mschewwwww

Meldrick:

Tunde Bakare is only interested in becoming Vice President at all cost so he tries to gain cheap support using the fuel subsidy.

^
would you prove to us how you arrived at that conclusion? Or are you just battling with genetical transmitted stuupidity? This hybrid goat came in dishing outs wild allegations(like the one highlighted above) and making unfounded statements, and when ask to prove it, he turncoat and started convulsing like a weed smooking vulture. What an ape!

Meldrick:

Bloodyfool!!!! you dare not exchange words. You've long descended so low when you started licking Pastor Bakare's boots. Bloody praise singers. Go about carrying pastor's suitcase and making Pastor a demi god.
Mschewwwww

, .

humblebee:

even if Jonathan has to remove subsidy, i suggest he fix some basic infrastructural needs of this nation, fix the refineries by borrowing money and let's see where the removal of oil subsidy will go, if you borrow money to do all these and tell the nation, the only way to pay back is to remove the subsidy, we would have no choice but accept since the refineries will start working henceforth, simple

Jonathan cannot fix the refineries. Anything that is government owned in this country is not but a cash cow. Checkout Nitel, Nafcom, NEPA/PHCN. The generality of Nigerians including those we refer to as "common man" have all grown greedy. Money is shared left right centre.

Nepa staff are more of the reason we dont have power than goverment.

Let the subsidy go and w alevel palying field will be created and the private sectore will invest in it. Take a look at the GSM business, then you will see wha will happen. Yes, their will be the innitial incease, but the open market forfces will combine to crash the prize.

Meldrick:

My friend go and sit down. The Lord did not ask him to lead any protest.
After leading the protest, he'll leave to Aso Rock and collect another amount of money in the name of ''transport money''. God is not an author of confusion. God says a thing and it comes to pass. Did God ask him to be running mate to Buhari.
In my opinion, he is not different from Jonathan. The man should just be seen and not heard.

Bakare never collected any "transport money". It was actually his rejection of said "transport money" that made the press and endeared Bakare to many Nigerians.

Oga, please no spoil the show.

Allow the foooool to continue entertaining us with his certified stuupidity.

Is gonna be a night of thousand foooools. Indeed!!

Gbawe:

Bakare never collected any "transport money". It was actually his rejection of said "transport money" that made the press and endeared Bakare to many Nigerians.

I might have some problems with Bakare, but I will not fail to identify with genuine issues when raised.

Spending so much on (internal) security guarantees nothing, especially when we do not have intelligent Intelligence Agencies.

I do not agree with any hint of amnesty for Boko Haram. While they have sought to impose their religious will on Nigeria, the militants of the Niger Delta only sought to assert their economic rights to fair existence. Amnesty is not and should not be a policy of the FG to mitigate violence against its people.

Bakare is obviously not too well informed on Lekki tolls. The issue is not the presence of a toll gate, but the frequency. Let him check if there is any 20 kilometer stretch of road anywhere in the world that has THREE toll gates.

The Real Cost Of Fuel (without Subsidy) In Nigeria

By Izielen Agbon Izielen Agbon

On December 10, 2011, if you stopped at the Mobil filling station on Old Aba Road in Port Harcourt , you would be able to buy a litre of petrol for 65 naira or $1.66 per gallon at an exchange rate of $1/N157 and 4 litres per gallon. This is the official price. The government claims that this price would have been subsidized at N73/litre and that the true price of a litre of petrol in Port Harcourt is N138/litre or $3.52 per gallon.

They are therefore determined to remove their subsidy and sell the gallon at $3.52. But, On December 10, 2011, if you stopped at the Mobil Gas station on E83rd St and Flatlands Avenue in Brooklyn, New York, USA, you would be a able to buy a gallon of petrol for $3.52/gallon. Both gallons of petrol would have been refined from Nigerian crude oil. The only difference would be that the gallon in New York was refined in a US North East refinery from Nigerian crude exported from the Qua Iboe Crude Terminal in Nigeria while the Port Harcourt gallon was either refined in Port Harcourt or imported. The idea that a gallon of petrol from Nigerian crude oil cost the same in New York as in Port Harcourt runs against basic economic logic. Hence, Nigerians suspect that there is something irrational and fishy about such pricing. What they would like to know is the exact cost of 1 litre of petrol in Nigeria .

We will answer this question in the simplest economic terms despite the attempts of the Nigerian government to muddle up the issue. What is the true cost of a litre of petrol in Nigeria ? The Nigerian government has earmarked 445000 barrel per day throughput for meeting domestic refinery products demands. These volumes are not for export. They are public goods reserved for internal consumption. We will limit our analysis to this volume of crude oil. At the refinery gate in Port Harcourt, the cost of a barrel of Qua Iboe crude oil is made up of the finding /development cost ($3.5/bbl) and a production/storage /transportation cost of $1.50 per barrel.

Thus, at $5 per barrel, we can get Nigerian Qua Iboe crude to the refining gates at Port Harcourt and Warri. One barrel is 42 gallons or 168 litres. The price of 1 barrel of petrol at the Depot gate is the sum of the cost of crude oil, the refining cost and the pipeline transportation cost. Refining costs are at $12.6 per barrel and pipeline distribution cost are $1.50 per barrel. The Distribution Margins (Retailers, Transporters, Dealers, Bridging Funds, Administrative charges etc) are N15.49/litre or $16.58 per barrel. The true cost of 1 litre of petrol at the Mobil filling station in Port Harcourt or anywhere else in Nigeria is therefore ($5 +$12.6+$1.5+$16.6) or $35.7 per barrel . This is equal to N33.36 per litre compared to the official price of N65 per litre. Prof. Tam David West is right. There is no petrol subsidy in Nigeria . Rather the current official prices are too high. Let us continue with some basic energy economics.

The government claims we are currently operating our refineries at 38.2% efficiency. When we refine a barrel of crude oil, we get more than just petrol. If we refine 1 barrel (42 gallons) of crude oil, we will get 45 gallons of petroleum products. The 45 gallons of petroleum products consist of 4 gallons of LPG, 19.5 gallons of Gasoline, 10 gallons of Diesel, 4 gallons of Jet Fuel/Kerosene, 2.5 gallons of Fuel Oil and 5 gallons of Bottoms. Thus, at 38.2% of refining capacity, we have about 170000 bbls of throughput refined for about 13.26 million litres of petrol, 6.8 million litres of diesel and 2.72 million litres of kerosene/jet fuel.

This is not enough to meet internal national demand. So, we send the remaining of our non-export crude oil volume (275000 barrels per day) to be refined abroad and import the petroleum product back into the country. We will just pay for shipping and refining. The Nigerian government exchanges the 275000 barrels per day with commodity traders (90000 barrels per day to Duke Oil, 60000 barrels per day to Trafigura (Puma Energy), 60000 barrels per day to Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and 65000 barrels per days to unknown sources) in a swap deal. The landing cost of a litre of petrol is N123.32 and the distribution margins are N15.49 according to the government. The cost of a litre is therefore (N123.32+N15.49) or N138.81 . This is equivalent to $3.54 per gallon or $148.54 per barrel. In technical terms, one barrel of Nigerian crude oil has a volume yield of 6.6% of AGO, 20.7% of Gasoline, 9.5% of Kerosene/Jet fuel, 30.6% of Diesel, 32.6% of Fuel oil / Bottoms when it is refined.

Using a netback calculation method, we can easily calculate the true cost of a litre of imported petrol from swapped oil. The gross product revenue of a refined barrel of crude oil is the sum of the volume of each refined product multiplied by its price. Domestic prices are $174.48/barrel for AGO, $69.55/barrel for Gasoline (PMS or petrol), $172.22/barrel for Diesel Oil, $53.5/barrel for Kerosene and $129.68/barrel for Fuel Oil. Let us substitute the government imported PMS price of $148.54 per barrel for the domestic price of petrol/gasoline. Our gross product revenue per swapped barrel would be (174.48*0.066 +148.54*0.207+172.22*0.306+ 53.5*0.095+129.68*0.326) or $142.32 per barrel. We have to remove the international cost of a barrel of Nigerian crude oil ($107 per barrel) from this to get the net cost of imported swapped petroleum products to Nigerian consumers. The net cost of swapped petroleum products would therefore be $142.32 -$107 or $35.32 per barrel of swapped crude oil. This comes out to be a net of $36.86 per barrel of petrol or N34.45 per litre.

This is the true cost of a litre of imported swapped petrol and not the landing cost of N138 per litre claimed by the government. The pro-subsidy Nigerian government pretends the price of swapped crude oil is $0 per barrel (N0 per litre) while the resulting petroleum products is $148.54 per barrel (N138 per litre). The government therefore argues that the “subsidy” is N138.81-N65 or N73.81 per litre. But, if landing cost of the petroleum products is at international price ($148.54 per barrel), then the take-off price of the swapped crude oil should be at international price ($107 per barrel). This is basic economic logic outside the ideological prisms of the World Bank. The traders/petroleum products importers and the Nigerian government are charging Nigerians for the crude oil while they are getting it free.

So let us conclude this basic economic exercise. If the true price of 38.2% of our petrol supply from our local refinery is N33.36/litre and the remaining 61.8% has a true price of N34.45 per litre, then the average true price is (0.382*33.36+0.618*34.45) or N34.03 per litre. The official price is N65 per litre and the true price with government figures is about N34 per litre (even with our moribund refineries).

There is therefore no petrol subsidy. Rather, there is a high sales tax of 91.2% at current prices of N65 per litre. The labor leaders meeting the President should go with their economists. They should send economists and political scientists as representatives to the Senate Committee investigating the petroleum subsidy issue. There are many expert economists and political scientists in ASUU who will gladly represent the view of the majority. The labor leaders should not let anyone get away with the economic fallacy that the swapped oil is free while its refined products must be sold at international prices in the Nigerian domestic market.

The government should explain at what price the swapped crude oil was sold and where the money accruing from these sales have been kept. We have done this simple economic analysis of the Nigerian petroleum products market to show that there is no petrol subsidy what so ever. In the end, this debate on petrol subsidy and the attempt of the government to transfer wealth from the Nigerian masses to a petrol cabal will be decided in the streets. Nigerian workers, farmers, students, market women, youths, unemployed, NGO and civil society as a whole should prepare for a long harmattan season of protracted struggle. They should not just embark on 3 days strike/protests after which the government reduces the hiked petroleum prices by a few Nairas. They must embark upon in a sustainable struggle that will lead to fundamental changes. Let us remove our entire political subsidy from the government and end this petroleum products subsidy debate once and for all. It is time to bring the Arab Spring south.

Izielen Agbon Izielen Agbon writes from Dallas, Texas. izielenagbon@yahoo.com

He is former HOD , Petroleum Engineering Dept, former ASUU chairman, University of Ibadan, trained many operators in nation’s energy industry with pratical experience on our practices and policy focus in the last 20yrs

@eGift, you really dissected makeup of the actual cost of a litre of fuel here in Nigeria!!!

I agree totally with you assumptions in arriving at the cost per litre of fuel by removing the international cost of a barrel of crude oil, between $91 and $107 per barrel, from your computation. This is because am aware that the Production Contract the Nigerian Government has with Oil Majors like Shell Petroleum, Chevron etc is a Production Sharing Contract (PSC) one, where the oil majors incurr cost in prospecting and drilling of crude oil. The above assertion means that if an oil well produces 30,000 barrels per day, the Nigerian Government may get 20,000 barrels of crude as their own share of production, while Shell (for example) gets 10,000 barrels per day. This means the Federal Government is not incurring any production cost and so the international cost of crude oil should nnot be used in computing the cost of a litre of fuel here in Nigeria.

Rhino.5dm:

^
would you prove to us how you arrived at that conclusion? Or are you just battling with genetical transmitted stuupidity? This hybrid goat came in dishing outs wild allegations(like the one highlighted above) and making unfounded statements, and when ask to prove it, he turncoat and started convulsing like a weed smooking vulture. What an ape!

, .

Good!!! I have been looking for your type.

When you get home sit your father down and start explaining the type of goat your mother is. Tell your father he is an ape. Omo ale.

@Noblezone
You have spoken well. Not only in the GSM sector did deregulation work. How about the broadcast industry? When I was a child, we had only the NTA and the various state broadcast houses! Thanks for deregulation, we have them many now; starting from AIT, SB, DBN, Channels, NN24, etc and this has even forced the NTA to rise and shine!

How about the banks? Then we had banks that we collect tally number first thing in the morning and come at the close of work to cash your cheque and then still "oil" the hands of the cashier, but with deregulation of the banking industry by IBB, we can even do GSM banking.

The problem is Nigerians forget too soon!

The truth is this:

Any Nigerian Leader that loves this country must remove subsidy and completely deregulate the petroleum industry! Our population is rising and our production remains at 2.3million barrels pd. Let there be a level field for any would-be investor.

In my mind, I was thinking that Adams Oshiomole would have built a refinery (no matter how small) in Edo State to provide jobs for Edolites. He used to be a strong opposition to Fuel Subsidy removal as NLC President. Let him now come up with all those his beautiful mathematical calculations of fuel economics that warmed him into the hearts of the simple folks! Afer all, there is oil Edo state!

The simple obvious truth is that no level of government can build and operate a refinery under the current arrangement in Nigeria. If this subsidy has not helped us in 50years, it will not help us now.

There is recession in Europe, let us free up this money in subsidy and turnaround our country.

Again, I repeat, our interest as Nigerians is to watch what our government will do after removing the subsidy and hold them to become more accountable.

No matter how the ACN dislike the PDP, was it not the Amiable BRF that headed a committee among the Governors forum that first proposed the removal of subsidy after the minimum wage bill was signed into law.

Nigerians, our leaders know the truth including Buhari/Bakare! Was it not the money Gen. Abacha got from proceeds after increasing the fuel price that brought again Buhari in to government direct service that he shows as one of his service to the nation, ? Why then should they play politics with the survival of the country? Tunde Bakare travels out, how many of those countries (like the UK) have fuel subsidy, yet their economy is dying today even with the infrastructure they have!

Was it not the UK government that withdrew some social services and it sparked riots, did it change their policies? NO,

If we don't act now, we shall be hit seriously tomorrow. Our case will even be worse. The obvious is that it a fact that the greatest spender today in Nigeria is government. So, if our government cannot spend tomorrow, the whole country is in catastrophe. All these talk will not help. If the government says tomorrow there is no money to spend (i.e. pay salaries), even a change of government will not produce money. Therefore, let us un-bundle our petroleum industry and allow investors to come in and begin to spend big. Until such a time, when our private sector becomes the major spender in the economy, we are not insulated from recession. Then, Tunde Bakare, SNG, NLC, NBA cannot help us, even the military cannot help then too.

So, lets us open up the PETROLEUM INDUSTRY NOW!!!

God bless Goodluck Ebelemi Jonathan!
God Bless Nairalanders!
God bless the Federal Republic of Nigeria!

Is Bakera planning to set himself ablaze as part of the protest? That is the only thing that will make me take that bitter hypocritical pastor serious.

The problem of nigeria is a word "amalgamation".
Call me to a press conference, give me 10hrs and I'l prove it to you and all nigeria in all sectors. But give me 10months pre-notice.

Oil Subsidy Removal: I’ll Lead Sng To Protest If – Tunde Bakare

Who is the President of Nigeria for God sake. Wen Obj was President or Yaradua, how many of these riff-raff were talking. GEJ should create problems for some of these idiots for God sake. haba   it is unbecoming,   

Dat subsidy is now gone.

Only Bakare loves Nigeria pragmatically; not the present online activism that we are good at, lol

PointB:

[size=33pt]Is Bakera planning to set himself ablaze as part of the protest?[/size] That is the only thing that will make me take that bitter hypocritical pastor serious.

Choi! One day is one day, pesin go take laf wound for dis NL!

You slammed it right between the eyes, bruv! Lets see that hypocrite, false prophet and snake oil merchant self immolate first. He is always pushing fools and the weak forward to reap the glory and to lap up his false prophesies; stealing from the poorest in the name of tithing and urging them to their destruction.

I prefer to listen to the likes of Owei Lakemfa with his untrained tongue, the likes of Oshiomole etc than to hear the words of a belly crawling hypocrite who plays dice with the Name of God.

Did Mahatma Ghandi, MLK, Malcolm X etc set themselves ablaze?

Did Bakare set himself ablaze to liberate Odechukwu retardeen from the clutches of Turai yar Adua?