temitemi1:
Buhari my Hero, Fashola my role model

imbless:
This man should go and seat down

JustCalMeDBoss:
A simple knowledge of fractional distillation shows that only 42% of gasoline can be gotten from a barrel of oil. For our type of oil. now the US energy information assessment agency clearly states that 19 gallons of gasoline and 12 gallons of diesel can be gotten from a barrel of oil. Bloomberg also states nigeria can only meet 16 percent refining capacities of its domestic needs which a large percentage is lost to vandalism and depends on importation for over 70% of its domestic needs.

Every body wants to be an economist now. LOL
Buhari the miracle worker. But let him start with Oando because we know tinubu has a large share there.

http://www.bloomberg.com/news/articles/2014-12-23/oil-s-slump-gives-nigeria-chance-to-end-7-billion-fuel-subsidy


http://www.eia.gov/tools/faqs/faq.cfm?id=327&t=9

http://www.petroleum.co.uk/refining

JustCalMeDBoss:
A simple knowledge of fractional distillation shows that only 42% of gasoline can be gotten from a barrel of oil. For our type of oil. now the US energy information assessment agency clearly states that 19 gallons of gasoline and 12 gallons of diesel can be gotten from a barrel of oil. Bloomberg also states nigeria can only meet 16 percent refining capacities of its domestic needs which a large percentage is lost to vandalism and depends on importation for over 70% of its domestic needs.

Every body wants to be an economist now. LOL
Buhari the miracle worker. But let him start with Oando because we know tinubu has a large share there.

http://www.bloomberg.com/news/articles/2014-12-23/oil-s-slump-gives-nigeria-chance-to-end-7-billion-fuel-subsidy


http://www.eia.gov/tools/faqs/faq.cfm?id=327&t=9

http://www.petroleum.co.uk/refining

impetus:
There has been an ongoing national argument on the reality of the oil subsidy which some eminent Nigerians have refuted against. 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.

http://nigeriana.org/135485.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Jetheights+%28Jobemy+Nigeria%29

imbless:
This man should go and seat down

grandstar:
Listen up guys and listen good! Tam David West is an economic illiterate

When a company wants to carry out machinery valuation, who do they call-An estate valuer or an engineer? Interestingly, they do not call an engineer. Its an estate valuer they call.

You may wonder why? Because value of a product is determined by the Law of demand and supply or simply put, market forces. If you have ever bought a sachet of pure water for 50naira in a monstrous traffic jam, you'll know what I mean.

Or alternatively, have you ever tried to dispose of your own item and found out that what you are being offered is usually less than your ideal value?

Tam David West here is speaking about cost of production and not value. Based on cost of production, yes there is no subsidy. But based on market value, there is.

No company in its right mind will invest hundreds of millions of dollars or even billions into producing oil if the sale price is based on the cost of production. Not a penny will be invested. No bank will ever extend money to such a venture!

Do you know that the market value can at times be less than the cost of production? It has happened several times. Why do you think that Saudi Arabia refuses to reduce the quantity of oil it produces. It wants there to be a glut so as to drive down price of crude oil to make it unprofitable for the Americans oil producers operating in the United States who have a very high cost of production.

If the market price is $80 and the FG is compelled to sell at say a cost of production price of $30 in order for the price to be 87naira, that means the government subsidizes it by $50 a barrel.

If you are a restaurant and the price for a plate of rice with chicken is N300 and you are compelled to sell at N150 which is your cost price, you are subsidising it by N150. If you sell 100 plates at 150, you are losing 150.

JustCalMeDBoss:
A simple knowledge of fractional distillation shows that only 42% of gasoline can be gotten from a barrel of oil. For our type of oil. now the US energy information assessment agency clearly states that 19 gallons of gasoline and 12 gallons of diesel can be gotten from a barrel of oil. Bloomberg also states nigeria can only meet 16 percent refining capacities of its domestic needs which a large percentage is lost to vandalism and depends on importation for over 70% of its domestic needs.

Every body wants to be an economist now. LOL
Buhari the miracle worker. But let him start with Oando because we know tinubu has a large share there.

http://www.bloomberg.com/news/articles/2014-12-23/oil-s-slump-gives-nigeria-chance-to-end-7-billion-fuel-subsidy


http://www.eia.gov/tools/faqs/faq.cfm?id=327&t=9

http://www.petroleum.co.uk/refining

grandstar:
Listen up guys and listen good! Tam David West is an economic illiterate

When a company wants to carry out machinery valuation, who do they call-An estate valuer or an engineer? Interestingly, they do not call an engineer. Its an estate valuer they call.

You may wonder why? Because value of a product is determined by the Law of demand and supply or simply put, market forces. If you have ever bought a sachet of pure water for 50naira in a monstrous traffic jam, you'll know what I mean.

Or alternatively, have you ever tried to dispose of your own item and found out that what you are being offered is usually less than your ideal value?

Tam David West here is speaking about cost of production and not value. Based on cost of production, yes there is no subsidy. But based on market value, there is.

No company in its right mind will invest hundreds of millions of dollars or even billions into producing oil if the sale price is based on the cost of production. Not a penny will be invested. No bank will ever extend money to such a venture!

Do you know that the market value can at times be less than the cost of production? It has happened several times. Why do you think that Saudi Arabia refuses to reduce the quantity of oil it produces. It wants there to be a glut so as to drive down price of crude oil to make it unprofitable for the Americans oil producers operating in the United States who have a very high cost of production.

If the market price is $80 and the FG is compelled to sell at say a cost of production price of $30 in order for the price to be 87naira, that means the government subsidizes it by $50 a barrel.

If you are a restaurant and the price for a plate of rice with chicken is N300 and you are compelled to sell at N150 which is your cost price, you are subsidising it by N150. If you sell 100 plates at 150, you are losing 150.

Elcapo:
Mathematically
Ever had about a priori in economics?