Former Petroleum Minister, Tam David West, Say Petrol Should Sell at N40.02

FORMER PETROLEUM MINISTER ON FUEL SUBSIDY REMOVAL

1) One barrel of Crude oil = 42gallons 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 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

28 comments

  1. thank God for pple like prof, have wonder why the federal govt cant give us the true analysis has done by the prof. oh God show us the way as the so call leaders are not but fools

  2. This is a fact. Can such facts about major government’s decisions be made public before conclusions are made by government? If they do so, we will have less protests and more peace.

  3. Removal of oil subsidy had been in vogue for decades before Babangida regime, even while the Prof. was in the helm of the affair of petroleum industry in Nigeria. Why did he come up with this analysis now? He should have told us when he was the minister of petroleum. He would have be a hero in Nigeria. This analysis is meaningless at this moment because it is of no use for the incumbent. Medicine after death. They are all bunch of liars.

    1. It is easy to stand aloof and criticize. The late Tai Solarin was strong Government Critic and was asked to head the community banks, what was the result? The late Bola Ige, an intelligent and straight forward individual also headed the PHCN, was there any result? The problem is the Civil Servants, whose aim of working is to make money and do not care of their consequent actions on the agencies where they work.

  4. Let d fed. govt refute dis man’s claims n naijiriyans wil all subscribe 2d idea of subsidy removal odawise let dem begin 2 pass a vote of no confidence of demsefs.

  5. am hapy u are once a minister,y dont u show us dis yl in govt?y are u just telling us now?pls just shut ur mouth becos u av d opourtunity of salvaging dis country nd u did not do it .liars

  6. Bravo, what an interesting analysis….. Pls, don’t just leave us alone in these struggle. God will continue to strengthen you……..

  7. Its better late dan Never, proff u are awesome, I really apreciate d analysis, only if d FG will listen 2 us. Pls I wnt u 2 b involved in dis protest 2 or call 4 a press conference. May God bless u.

  8. Truly d ppl in govt.knos dis truth,bt due 2 d high level of der corruption dy wil neva settle 4 dis.tnx 4 d great work u av done & u shal continue wit ur own may b one day dy wil heed 2 d word of d elder.

  9. Can our finance minister deny the truth about what our former Petroleum Minister said about crude oil production and its cost and amount a litre of oil ought to be sold to every Nigerian- #4O.O2k?Our leaders should read Proverbs 14 vs 34:’Righteousness exalteth a nation….’ He said oil subsidy was a fiction in the first place.Will to enforce law on corruption is what is lacking.

  10. Subsidy in my own diction is a grant or gift of money from a government to a private company, organization, or charity to help it to function but Subsidy in Nigeria is a deliberate attempt by Govt to suffer d masses and enrich theirs…If truly Govt subsidize fuel for us due to exportation , importation and refined charges abroad? who are those selling the locally refined PMS since that has no subsidy maybe i can go buy at #65 there…Lamido, Iweala, Maduekwe, Jonathan …You may be the best economist in Nigeria but we aren’t morons…Enough is Enough

  11. Good Prof, but when you are there as the minister, would you have the gut as Sanusi Lamido to say this, I dont think so. but thanx for the info

  12. I dn’t undastand why we ar so myopic, ethnic-minded & parochial. Dose who liv gud, but stupid lives abrod shud learn 2 shut deir mouths up weneva isues bodering on d welfare of Nig. & Nigerians ar discust. Dose wose kernels ar crackt by benevolent spirits shud learn 2 b humble. Prof. Tam David-West is a Nigerian, lives in Nig. & sufas d incesant power outage & oda sundry evils dat bdevils our (under)gret country, ocasioned by unpatrotic, selfish, gri:dy & myopic lidaship. Prof. West has SERVED his fadaland as an oil minista without any blemish, unda d only military govt recognized by d erudite Human Rights activist, Late Chief Gani Fawehemi (SAM/SAN), even dough he’s bin severaly vilified by som unruly elements in d system. So he’s in a gud, if nt d best position, 2 knw wat goes on in our roten oil industry. Has anybdy eida in d govt or elsewere bin able 2 analyticaly & logicaly countad his position on d dubious oil subsidy, if nt d usual name-caling? Prof. West, as we al knw, coms frm d Niger Delta region, wich lays d golden egg dat fids d nation & gets litle or nothing in return, as GEJ. So he’s nt crying wolf were none exists. Dose wose only biznes is sycophancy shud tink twice b4 writing anything 4 public consumption. Nigerians ar hungry & angry; so something concrete shud b done 2 ameliorate d suferings of d mases of Nigeria, nt 2 make empty promises of som gudies dat hav always remained in d pipeline. Lidas ar ment 2 solve problems, & nt 2 compound existing ones and 2 complain of sabotage. Anyone dat can’t solve problems doz nt hav any biznes being in govt; 4 governance is a serios biznes by serios-minded, selfles individuals who hav visions.

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