FORMER PETROLEUM MINISTER ON FUEL SUBSIDY REMOVAL
1) One barrel of Crude oil = 42gallons or 159 litres
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 N65/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 done by Professor Tam David West, former Petroleum Minister