One barrel of crude oil = 42 gallons (159 litres)

Combined Capacity of 4
installed refineries in Nigeria = 445,000 barrels per day

Current capacity of the 4 refineries
due to aging equipment and irregular
TAM (Turnaround maintenance) = 30% ie. 133,500 barrels (21.2 million litres) per day

Locally required consumption (FOS) = 12 million litres

Point number 1.
Don't let the Nigerian Government fool you. Even if we do not import fuel, current operational capacity in our refineries is enough to satisfy local demand. So why the price increase?

Cost structure of crude oil - Qua Iboe Crude Oil Production

Finding/Development     - $3.5

Production cost              - $1.5

Refining Cost                  - $12.6

Pipeline/transportation  - $ 1.5

Distribution/bridging fund  margin - $15.69

Total - 34.8 approx.


Let's now what the true cost of petrol should be anywhere i Nigeria :

Total cost of production & distribution of one barrel - $34.8

1 litre  = $34.8 divided by 159 litres = $0.219

Naira equivalent - 0.219 x N160 = N35.02

Add tax N5 + N35.02 = N40.02

So, total cost of production, distribution and tax on locally refined fuel is 40.02. So, if the federal government is selling to us at N65, it is already making a profit of N24.98k. So, Government has not been subsidizing fora long time, rather its been making N24.98k from every litre sold to Nigerians

Questions we should ask the federal govt are:

1. Why can't the 4 refineries work at optimal capacity so that we have enough refined products for both local consumption ( at N65 or less) and still make money from exporting same?

2. Why should we pay international rates fora locally refined product?

We should not be importing refined products at all in Nigeria. Let the govt. go and fix our refineries so we can continue buying at same price or less. If we are not importing, we would not have cabals that would be milking the country dry. Let Uncle Joe and Co. wake up to their responsibilities and stop giving excuses that bother on corruption and inefficiency on their part.

What the govt. has just done is a pump price increase and not fuel subsidy removal because there has never been subsidy has analysed below. Let's reject and protest against this with every drop of our blood and settle this fuel subsidy issue once and for all so that Uncle Joe's Govt and all subsequent govts. will know that there is no way there. WE SAY AN UNEQUIVOCAL NO TO THIS PUMP PRICE INCREASE!