I asked Meta AI the question below and I encourage you to do the same

" *Can a refinery give PMS free and be able to recover costs and still make profits from other crude oil products?"*

Response below:

Yes, a refinery can potentially give Premium Motor Spirit (PMS) at a subsidized or free price and still recover costs and make profits from other crude oil products. Here's how:

*Refinery Economics:*

1. Crude oil refining yields multiple products:
- PMS (gasoline)
- Diesel
- Jet fuel
- Fuel oil
- LPG
- Petrochemicals
2. Each product has a different profit margin.


*Cost Recovery Strategies:*

1. Cross-subsidization: Offset PMS losses with profits from other products.
2. Price differentiation: Charge higher prices for other products to compensate for PMS subsidies.
3. Economies of scale: Increase overall production to reduce costs per unit.
4. Operational efficiency: Optimize refinery processes to minimize costs.

*Profitable Products:*

1. Diesel: Typically has higher profit margins than PMS.
2. Jet fuel: High-demand product with attractive margins.
3. Petrochemicals: Specialty products with high value-added potential.

By cross-subsidizing PMS losses with profits from other products, the refinery can maintain overall profitability.


*Case Study:*

Dangote Refinery a modern state of the art refinery producing 650,000barrels approximately 100m liters of Crude Oil per day.

The refined products from 100m liters of crude oil depend on the refinery's configuration, crude oil type, and processing capabilities. However, here's a general breakdown of typical refined products and their approximate yields:

*Assumptions:*

- Crude oil type: Medium-grade (e.g., Brent or Nigerian Bonny Light)
- Refinery configuration: Complex refinery with cracking and coking capabilities
- Processing capabilities: Producing a range of petroleum products

*Typical Refined Products and Yields:*

1. Gasoline (PMS): 25-30% (25-30m liters)
2. Diesel: 20-25% (20-25m liters)
3. Jet Fuel: 5-7% (5-7m liters)
4. Fuel Oil: 10-15% (10-15m liters)
5. LPG (Liquefied Petroleum Gas): 5-7% (5-7m liters)
6. Petrochemicals (e.g., ethylene, propylene): 5-7% (5-7m liters)
7. Heavy Fuel Oil (HFO): 5-10% (5-10m liters)
8. Lubricants: 2-5% (2-5m liters)
9. Asphalt: 2-5% (2-5m liters)

*Other Products:*

1. Refinery Gas (e.g., propane, butane)
2. Sulphur
3. Coke (petcoke)

*Total Yield:* Approximately 95-98% of crude oil input (95-98m liters)

*Losses:*

1. Refinery losses (e.g., spills, evaporation): 2-5% (2-5m liters)

Note: Actual yields may vary depending on the specific refinery, crude oil quality, and processing conditions.


*Challenges and Considerations:*

1. Market dynamics: Fluctuating global oil prices, demand shifts.
2. Government regulations: Price controls, subsidies, taxes.
3. Competition: Other refineries, imports.
4. Operational risks: Maintenance, downtime.


*Examples of Successful Implementation:*

1. Saudi Aramco (Saudi Arabia): Subsidized PMS prices while maintaining profitability through other products.
2. Kuwait National Petroleum Company (Kuwait): Implemented cross-subsidization to offset PMS losses.
3. National Iran Oil Company: Cross-subsidization


*These are Key Takeaways and Conclusions*

1. Diversified product portfolio is crucial. i.e the refinery must produce and sell other products down the fractional distillation of crude oil.
2. Efficient operations and cost management are essential.
3. Market dynamics and regulations must be carefully monitored.
4. It is possible for the Nigerian Govt to provide very cheap PMS to its citizens if they really care for the people.

At the end of ur analysis, u said "...if they really care...."

That's the question.

They don't!

There gross misconduct is blatant.
They thrive in our misery and distress.
They are so sure that we find contentment is which ever brutish state we find ourselves.

Pearl1910:
I asked Meta AI the question below and I encourage you to do the same

" *Can a refinery give PMS free and be able to recover costs and still make profits from other crude oil products?"*

Response below:

Yes, a refinery can potentially give Premium Motor Spirit (PMS) at a subsidized or free price and still recover costs and make profits from other crude oil products. Here's how:

*Refinery Economics:*

1. Crude oil refining yields multiple products:
- PMS (gasoline)
- Diesel
- Jet fuel
- Fuel oil
- LPG
- Petrochemicals
2. Each product has a different profit margin.


*Cost Recovery Strategies:*

1. Cross-subsidization: Offset PMS losses with profits from other products.
2. Price differentiation: Charge higher prices for other products to compensate for PMS subsidies.
3. Economies of scale: Increase overall production to reduce costs per unit.
4. Operational efficiency: Optimize refinery processes to minimize costs.

*Profitable Products:*

1. Diesel: Typically has higher profit margins than PMS.
2. Jet fuel: High-demand product with attractive margins.
3. Petrochemicals: Specialty products with high value-added potential.

By cross-subsidizing PMS losses with profits from other products, the refinery can maintain overall profitability.


*Case Study:*

Dangote Refinery a modern state of the art refinery producing 650,000barrels approximately 100m liters of Crude Oil per day.

The refined products from 100m liters of crude oil depend on the refinery's configuration, crude oil type, and processing capabilities. However, here's a general breakdown of typical refined products and their approximate yields:

*Assumptions:*

- Crude oil type: Medium-grade (e.g., Brent or Nigerian Bonny Light)
- Refinery configuration: Complex refinery with cracking and coking capabilities
- Processing capabilities: Producing a range of petroleum products

*Typical Refined Products and Yields:*

1. Gasoline (PMS): 25-30% (25-30m liters)
2. Diesel: 20-25% (20-25m liters)
3. Jet Fuel: 5-7% (5-7m liters)
4. Fuel Oil: 10-15% (10-15m liters)
5. LPG (Liquefied Petroleum Gas): 5-7% (5-7m liters)
6. Petrochemicals (e.g., ethylene, propylene): 5-7% (5-7m liters)
7. Heavy Fuel Oil (HFO): 5-10% (5-10m liters)
8. Lubricants: 2-5% (2-5m liters)
9. Asphalt: 2-5% (2-5m liters)

*Other Products:*

1. Refinery Gas (e.g., propane, butane)
2. Sulphur
3. Coke (petcoke)

*Total Yield:* Approximately 95-98% of crude oil input (95-98m liters)

*Losses:*

1. Refinery losses (e.g., spills, evaporation): 2-5% (2-5m liters)

Note: Actual yields may vary depending on the specific refinery, crude oil quality, and processing conditions.


*Challenges and Considerations:*

1. Market dynamics: Fluctuating global oil prices, demand shifts.
2. Government regulations: Price controls, subsidies, taxes.
3. Competition: Other refineries, imports.
4. Operational risks: Maintenance, downtime.


*Examples of Successful Implementation:*

1. Saudi Aramco (Saudi Arabia): Subsidized PMS prices while maintaining profitability through other products.
2. Kuwait National Petroleum Company (Kuwait): Implemented cross-subsidization to offset PMS losses.
3. National Iran Oil Company: Cross-subsidization


*These are Key Takeaways and Conclusions*

1. Diversified product portfolio is crucial. i.e the refinery must produce and sell other products down the fractional distillation of crude oil.
2. Efficient operations and cost management are essential.
3. Market dynamics and regulations must be carefully monitored.
4. It is possible for the Nigerian Govt to provide very cheap PMS to its citizens if they really care for the people.

Do you still sell cars can we exchange contacts