SEE WHY WE MUST REJECT REMOVAL OF FUEL SUBSIDY

Subject: FUEL SUBSIDY EQUATION



This economic puzzle is simple enough for anyone to solve.

* Fuel subsidy itself is a scam
* Removal of self subsidy is a scam
* Turn around maintenance of refineries is a scam
* Non development of new refineries is a scam
* Insincerity of government is a scam

‎​Fuel Subsidy Equation
------------------------
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.