AFTER MART OF FUEL SUBSIDY IN NIGERIA PALANCE

HENCE FORT THIS WILL BE  THE PRICE OF PETROL ACCORDING TO CHANGES IN INTERNATIONAL PRICE OF CRUDE IN NAIRA VALUE. I.E. THE COST OF PETROL EXCLUDING TRANSPORTATION COST.(You must read this..)

 A barrel of crude oil contains 159 litters of products or 42 gallons; it is broken down as follows:

Petrol                                           72 litters    i.e.    19.15 gallons
Diesel                                          34 litters    i.e.   9.21 gallons
Jet fuel/ Kerosene                                  14 litters    i.e.   3.82 gallons
Petrol chemical, feed stocks,
Bitumen etc                                            27 litters   i.e.   7.27 gallons
Liquefied petroleum gas                          6 litters   i.e.   1.72 gallons
Heating oil                                               6 litters   i.e.   1.75 gallons

The following calculation reveals the percentage of each product in a barrel of crude.


   Petrol                                       72 litters   x      100                           =  45.3%         
                                                    159                    1         


  Diesel                                        34 litters    x        100                        =  21.4%         
                                                    159                     1         


 Jet fuel/ Kerosene                        14 litters     x      100                       =  8.8%         
                                                      159                 1         

Petrol chemical, feed stocks        27 litters     x      100                        =  16.9%         
                                                   159                  1         

Bitumen etc                                   6 litters     x      100                         =  3.8%         
                                                      159                  1       


 Bitumen etc                                  6 litters     x      100                         =  3.8%         
                                                    159                       1         

Presently a barrel of crude is aprox 100 Dollars
Since we have 159 litters in a barrel of crude and it is being sold for 100 Dollars
45.3% of  100 Dollars  gives us the price of  72 litter of petrol in a barrel:

Which is        100        x         45.3             =  45.3   Dollars 
                    100                 1

=   45.3 dollars  x   160 (exchange rate)
=   72 litters of petrol in Naira = N7, 248.00

A litter of petrol will cost = N100.60 k
Refine cost is btw N12 and N24 depending on the quality. Lets us stay in the middle = N18
N100.60 + N18.00 = N118.60.
Therefore if a barrel of crude = 100 Dollars
A litter of refine petrol will cost N1180.60k
This exclude only the exportation and importation cost.

This will be the approximate cost if we refine here in Nigeria. This is so because FG decide to sell to Nigerians at International price and as long as price rice in international market it will continue to rise here too and affect Naira since our means of exchange is dollar.

The only scenario where we can have a liter of petrol at something close to N65 is when a barrel of crude come down to as low as 55 dollars per barrel in international market.
Another issue is that of Nigerian business men who always find it easy to increase price but find it hard to reduce it. We can site the example of cement. Even when the cost of production come down in many sector, for the absent or inefficiency of customer protection agency and poor government policy to protect consumers, the manufacturer retort to fleecing the people.

 In conclusion, with the above revelation it is clear that the pain of subsidy removal is not a short term pain but hinges on the fluctuation of price in the international market. Having behind our mind the politics of the oil cartel who enjoys crises period, for instance in the middle east, because this always lead to rise in crude price and mean more money for them. This mean at any point there is crises in any oil producing country we must catch the cold here in Nigeria.

Nigerian must pray every night before going to sleep that crises must not erupt in any of the oil producing country which will lead to drop in supply and rise in crude price so as not to wake up the next day meeting pump price increase.

Another mystery is the fact that the government of Nigeria should never be crying woe over the sum of 1.3 trillion, claiming this is what they want to use to revamp the economy or build infrastructure. For instance, with the following revelation about undeclared trillion of naira that is accrued from sale of crude and excess crude revenue.

Nigeria exports 2.5 million of crude per day.

Since we consume 450,000 barrel (unverified)

The sum left for export remains 2,050,000 million

If sold at $75 dollars per barrel, the benchmark, we have:
 
$153,750,000 million dollars per day accruing from crude alone.

$56,272,500,000 billion dollars per year.

N8,722,237,500,000 trillion naira (8.7 trillion)

The present budget is 4.7 trillion  i.e we still have 4 trillion left untouched

This is without excess revenue accrued from selling at present market price of  aprox 105 dollars.
This is also without the IGR (internal generation revenues) money accrue from other sectors.

Where does the 4 trillion disappear into?
Where does the IGR and other revenue generated internally and other export disappear into?
Where does the excess crude revenue, the difference between $75 per barrel and $105 per barrel disappear into?
Yet we tell Nigeria the economy will crash.
And we intend to remove subsidy because of a paltry sum of 1.3 trillion that is enough to send million of Nigerian to their early grave.

A paltry sum that is enough to cause hyper inflation that can swallow and make the budget valueless.

The argument by Sanusi that we are subsidizing consumption is misleading. those who use petrol to fuel a cybercafé business, barbing salon, hairdresser, tailor, commercial drivers etc use it for business, that is production not consumption.

Also almost all the OPEC country subsidize fuel even some very low and they have both private and public refineries. some of these countries do not have border with oil nations and they control smuggling effectively e.g Libya, Venezuela etc

IF WE FAIL TO KILL CORRUPTION IN GOVERNANCE NOW, CORRUPTION WILL KILL THIS COUNTRY SOON.

Pastor Ayoola Iyanaipaja on FB. Member of  MAGG (Movement for Accountable and Good Governance on FB)
Pass it on….

Can WE please begin to pressurize our leader to stop this evil policy of deregulation in a country that has more than enough oil to sell and give her citizen? The amount of fuel being consumed per day in Nigeria according to DPR data is 63 million litters of product 30 mil petrol, 18 mil diesel and 15 mil kero. 159 liters of product is refined in a single barrel of crude oil. 72 litters petrol, 34 litter diesel, 14 litters keros with other products. Calculation reveals that approximate 417,000 thousand barrel will yield all our daily need. Nigerian daily export as at today is 2.6 million barrel while. This is to say that we consume less than 20% of our daily production. Our reserve as at 2009(DPR) is 38.6 billion barrels. Indian just built the largest refinery in the world and it cost just 6.1 billion dollar. Its refining capacity is 1.2 million barrel per day http://www.freerepublic.com/focus/f-news/1656901/posts#comment#comment

If this is so, then somebody should query our rulers who squander 28 billion dollars excess crude account to achieve nothing within 2007 - 2011. They should please release us from slavery not throwing us into the hand of their cronies’ oil cabal for more destruction. If Venezuela can buy petrol for N2.20k with a good God fearing leader and have 18 refineries home and abroad then we can afford to have fuel very cheap if not 4 free in this country. Warri, PH  and Kaduna refinery was built to refine 444,000 barrels per day all together but they now work at 40% capacity and there input have not remove a dine from the current price of fuel. In the interim, b4 building the refinery that was intentionally cripple to allow the conspiracy of selling us into the hand of the politician owned oil industry, government should subsidies petroleum product  with the above 1.3 trillion outrageous salary of our less that 17,000 political office holder that include legislators from presidency to the local government chairmen. According to Yaradua it cost Nigeria 900 billion naira to subsidize these products for 3yrs i.e 300 billion naira per year. Cant we afford this for the sake of  easing Nigerian burden?  

To some she has archived so much, after all kerosene is from N55 now N150 and diesel has earlier been sold as low as N90, but it is about N200 now. These two products have been deregulated. Yes we do not sleep in filling station any longer, but to whose advantage? the oil importers, the politician Oil businessmen now smile to bank. kudos to Alison Madweke check the following link while u are logged in to your face book to read about the conspiracy theory in the oil industry. If Venezuela can sell petrol to its citizen for N2.20k we also can: http://www.facebook.com/notes/pastor-ayoola-iyanapaja/do-u-know-it-will-cost-fg-61-billion-dollars-to-build-a-refinary-that-will-make-/212326778788977   Also check for PIB info http://www.facebook.com/notes/pastor-ayoola-iyanapaja/pib-whose-interest-are-the-lawmakers-serving/212958502059138

Emerging details of this year’s budget proposals indicate that the Presidency has proposed to spend N574m on food in 2011. When this total is spread over the 365 days in 2011, the average amount that the Presidency will spend on food per day is a little over N1.57m.


The N574m is N168.7m more than the N405.3m spent by the same office on ‘food stuff supplies’ in 2010. However, the 2010 figure is exclusive of the sum expended on foods eaten during summits. A separate sub-head for “meals/entertainment” for summits held at the State House last year totalled N73m.


It (N574m) is also part of the N13.9bn that will be used to fund sub-heads and the overhead cost of the State House or Presidential Villa.


The details, which our correspondent obtained on Monday, showed that the rehabilitation of the State House Guest House in the Marina, Lagos, would cost N1.2bn.


Similarly, “residential furniture” items for the Presidency are to be purchased for a whopping N1.1bn this year.


The furnishing of Vice-President’s two guest houses — one in Asokoro and the other called “Aguda House,”— will cost N500m.


The furniture for the guest house in Asokoro will cost N100m, while that of Aguda House will consume N400m.


Incidentally, the lounge of Aguda Guest House was extended in 2010 for N50m. Another guest house was also furnished for the Vice-President’s use in 2010 for N50m.


This year, the “purchase of canteen/kitchen equipment” for the Presidential Villa will also gulp N553.6m.


Further details of the 2011 budget estimates showed that out of the N553.6m, N150m will be used to fund “household equipment and materials for the Vice-President’s office.”


However, in 2010, a provision of N240m was made for the purchase of office, household and kitchen equipment for Asokoro Guest House.


Other details show that the Director of Protocol to the Vice-President, his Aide- De- Camp, and other aides are to be housed in new official quarters to cost N560m in 2011.


Dodan Barracks in Lagos will also benefit from the presidential renovation in 2011, as it has a provision of N400m in the budget.


President Goodluck Jonathan presented a N4.23tn budget to the National Assembly for approval on December 15.


The sum comprises N198.12bn for statutory transfers, N542.32bn for debt service; N2,481.71tn for recurrent (non-debt) expenditure; and N1,005.9tn for capital expenditure.


The government also earmarked the sum of N347.2bn for critical infrastructure development.


This includes capital allocations of N86.25bn for power; N20.74bn for Aviation; N10.27bn for petroleum resources; N136.88bn for works; N48.9bn for transport; N44.18bn for the Federal Capital Territory; N35.01bn for education; N33.35bn for health; N29.46bn for agricultural development; and N24.76bn for water resources.

FURTHER DETAILS HERE:  http://www.nigerianelitesforum.com/ng/nigeria-national-debt-finance/8019-nigeria-2011-budget-waiting.html

The figures are far above that SEE BELOW: SOME DETAIL


 A start point for change

Approved salary and ALL allowances for each senator is as tabulated below

Basic Salary 2,484,245.50

Hardship Allowance @ 50% of Basic Salary 1,242,122.70

Constituency allowance @ 200% of Basic Salary 4,968,509.00

...Furniture allowance @ 300% of Basic Salary 7,452,736.50

Newspaper allowance @ 50% of Basic Salary 1,242,122.70

Wardrobe allowance @ 25% of Basic Salary 621,061.37

Recess Allowance @ 10% of Basic Salary 248,424.55

Accommodation @ 200% of Basic Salary 4,968,509.00

Utility @ 30% of Basic Salary 828,081.83

Domestic staff @ 75% of Basic Salary 1,863,184.12

Entertainment @ 30% of Basic Salary 828,081.83

Personal Assistant @ 25% of Basic Salary 621,061.37

Vehicle maintenance allowance @ 75% of Basic Allowance1,863,084.12

Leave allowance @ 10% of Basic Allowance 248,424.55

Total Per Annum 29,479,749.00

A Senator’s Legitimate Salary Per Month 2,456,647.70

 

109 Senators Grand Total = =N=3,264,329,264.10

ADD: Illegitimate allowances = =N=85 million per quarter = =N=340,000,000 per Annum

Total per annum = N369,479,749 and a terminal one-off payments at the beginning or end of the tenure not included above:

-Severance gratuity @ 300% =N=7,452,736.50 at the end of tenure

-Motor Vehicle allowance @ 400% of Basic Salary = 9,936,982.00 every four years

Additionally =N=17,360,000 every four years.

DO U KNOW A LITTER OF PETROL COST JUST 15KOBO BTW 1979 & 1986?
U MUST READ TO KNOW HOW WE GOT HERE AND THE DANGER AHEAD.
How did we get to were we are today, buying petrol for N65 Diesel for above N150 and kerosene for above N120? Subsequent rulers before President Obasanjo have initiated the conspiracy theory of selling Nigerian major economic sectors and buying them back backdoor. How can this happen, they have to create a need for the selling. They started by refusing to invest in the maintenance and upgrading of these sectors e.g. refinery, power, telecommunication etc. these later lead to inefficiency on the part of these sectors. Another tactics used is by posting compromised personnel to head this sector so as to facilitate the crippling and destruction of the sectors. When the effect of the inefficiency, fraud and corruption begin to have its toll on the citizen, there is uproar. When people notice the inefficient and nonchalant attitude of this administrator or their act of corruption and notify the government, the presidency turn deaf ear to the complaint and indictments. Even if they decided to act, they end up putting another person who is worse than him to maintain the status quo so as to achieve their aim. This act of impunity and corruption goes down the drain of such ministry and it is watched for a purpose. An example is NEPA. These inefficiency and corruption always leads to shortage of such product or service e.g. shortage of  petroleum product which leads to long queue at filling station, epileptic power supply or total outage. The government will then introduce their game by telling the people that the only way out of the doldrums is by privatizing the sector. They will make it look very promising and paint it as the only solution to the scarcity, corruption and inefficiency. They will shy away from the fact that they have slack in their responsibility of performing oversight function and doing checking and balance on the personnel administering the sectors. Looters are made to go free while fraudulent public office holders are pardoned of their iniquities at the expense of the people to achieve their aim. The bible says “Ecclesiastes 8:11 because the sentence against an evil work is not executed speedily, therefore the heart of the sons of men is fully set in them to do evil.
In other clime government agency run side by side with private ones in providing services. The duty of government owned sector is to protect the interest of the citizen and also protect them from exploitation, monopoly and cartels. If the government fail to serve as a watch dog to private sectors they will collide together to form a clique which resulted in a cartel or monopoly. Examples are Dangote group and the oil cabal in Nigeria who receive the unaccounted subsidies from government as revealed by late President Yaradua. Government must stand to control the arm of demand, supply and price so that the private sectors do not create artificial shortage in supply to drag price up arbitrarily. A government who is quick to introduce privatization by handing off the business (social services) and throwing it in the hand of the private profit driven business men have handed the destiny of her citizen into the hand of hulks and mosquitoes.

This was the conspiracy in oil and power issue and other sector that has failed to improve perform in the last thirty years in the country. During the time of babangida up till the present moment the deception that have brought petroleum product to the present price goes thus. At any moment that scarcity of petroleum arises government come out to tell us that this was caused by the smuggling of these products to neighboring country where the price is higher. For this government to address the issue of loophole in our border they cajole us that the solution is to increase the price to be at par with what obtain in the neighboring countries. During this time our refineries where still working. What they said to placate Nigerian to stop the protest then was that the gain accrued from the unnecessary hardship placed on Nigeria will be plunged back to develop our infrastructure. But since then our infrastructure has not only been left unattended to but that looters of these my sweat and yours have been given immunity, state pardon and plea bargain to escape justice and to encourage upcoming looter. After a little price up push they stops and up they go again until we get to this point. The case of Nigeria citizen could then be liken to a person who is deceived to climb a ladder after getting to the roof then the ladder is removed. By the time the price of petrol reaches the top, our refineries have been destroyed. Then we can not go back to our formal state and the only option left for us is to adopt subsidies i.e. petroleum product will be bought for us at international price and subsidized for government to pay part of the cost.

During the regime of Obasanjo, a total sum of approximately 900 billion was said to have been spent on the maintenance and repair of our refineries to no result. President yaradua revealed sometimes that Nigerian spends 900 billion in three years to subsidize petroleum products. If these are to be broken down to arrive at how much this government spends to subsidize a litter of fuel, we arrive at the following calculation. Going by DPR submission that Nigerian consumes aprox 30 million litters of petrol, 18 million litters of diesel and aprox 15 million litters of kerosene per day and in tandem with the fact that it cost us 900 billion naira in 3 yrs we calculate as follows:

365 days makes one year X by 3 years = 1095 days
900,000 billion naira / 1095 days = N821, 917,808.21 million
That is N821, 917,808.21 million is spent to subsidize petrol, diesel and kerosene par day

(Note: this was b4 diesel and kerosene was deregulated. Deregulation mean removal of subsidies i.e. government monetary assistance)

30 million litter of petrol + 18 million litters of diesel + 15 million litters of kerosene
= 63 million litters of subsidize petroleum product (daily consumption) divided by daily subsidies of N821, 917,808.21 =

+ / - N13 subsidies being paid per litter of product every day

This is plus or minus N13 due to the fact that each product (diesel petrol and kerosene) price per liter varies in international market.

If Venezuela can buy petrol at N2.20k then what is our problem? One will say it is the unavailability of refinery. If Venezuela has 18 refineries both in and outside the country what stop us from having at least the one that will refine the 63 million liters of petroleum product needed. This take us into another calculation of what capacity of refinery will be able to refine our daily consumption and how much of our daily export output are we consuming?

A barrel of crude oil contains 159 litters of products or 42 gallons; it is broken down as follows:

Petrol                                          72.5 litters    i.e.    19.15 gallons
Diesel                                    35 litters    i.e.   9.21 gallons
Jet fuel/ Kerosene                           14.5 litters    i.e.   3.82 gallons
Petrol chemical, feed stocks,
Bitumen etc                           27.5 litters   i.e.   7.27 gallons
Liquefied petroleum gas                   6.5 litters   i.e.   1.72 gallons
Heating oil                            6.6 litters   i.e.   1.75 gallons

If a barrel of crude oil contained 72.5 litter of petrol after being refined, therefore a daily consumption of 30 million litters will be generated from the following number of barrel of crude:

30 million litters divided by 72.5 litters = 413,713 thousand barrels of crude. Since kerosene and diesel is contain in the same barrel and also generated alongside with petrol in the same barrel, the above 413,713 have accommodated the 18 million litter of diesel and 15 million liters of kerosene.

Daily output presently is 2.6 million barrel of crude, deduction 413,713 from this is calculated as follows:

Daily output              2,600,000 barrels
Daily consumption                -      413,713 barrel
Total remain after daily consumption       =   2,186,287 barrels

The percentage of our daily consumption to our daily output =

             100       x    413,713   
            1               2,600,000       = 15.9 %
This clearly show that we consume 15.9 % of our daily output

It clearly show that what Nigeria need to refine to give you and I  the three basic petroleum products is just 413,713 barrels of crude.

The greatest surprise here is that India just built the world largest refinery just for the cost of 6.1 billion dollar most of other nation refineries cost between 2 to 4 billion dollars depending on the refine capacity.
India refinery is built to refine 1.2 million barrel of crude per day.
http://www.freerepublic.com/focus/f-news/1656901/posts#comment#comment
Fellow Nigerian how many 6.1 billion dollar can we have in 30 billion excess crude account squandered by our leaders between 2007 and now? You should know by now why they refuse and also refuse others from building us a refinery. They have engaged us on a waiting game all these years.
Sour
 SEE BELOW TO KNOW THE HISTORY OF PETROL PRICE INCREASE ACCORDING TO DATE FROM THE REGIME OF  YAKUBY GOWON TILL DATE:

Petrol now N65 a litre
By Yakubu Lawal
“Under former President Olusegun Obasanjo administration, the fuel price was hiked from N11 to N20 per litre in June, 1999.
Despite nationwide protest, the price went up to N22 per litre, June 13, 2000.
On June 1, 2002 it went up to N26 per litre, between June 2003 and October 2003, to N34 per litre and later N42 per litre.
In 2003, Obasanjo, for the first time introduced petroleum tax in place of another veiled increase of petrol pump price, which was successfully resisted by Nigeria Labour Congress (NLC) and the civil societies.
On May 29, 2004, the price went up to N50 per litre and N65 on August 25, 2004, shooting up again to N75 on May 27, 2007 just 48 hours to the end of Obasanjo's tenure. This inheritance by the President Musa Yar'Adua administration did not survive as workers via the labour organisations protested with a shut down. And the new government succumbed with a cut to N70 per litre, which subsisted till last night.
Earlier, in 1973 the military government of Gen. Yakubu Gowon increased the price of petrol to 9 kobo per litre while Gen. Obasanjo's regime (1976 - 1979) raised it to 15 kobo per litre in 1979.
In 1986, Gen. Ibrahim Babangida's administration took the price to 39 kobo per litre and raised it again to 51 kobo per litre in 1999; 70 kobo a litre in 1991 and N3.25 kobo in 1993
In 1994 the late Gen Sani Abacha took it up to N11 per litre and set up the Petroleum Task (Special) Force (PTF), to use the proceeds for development of infrastructure and social amenities.
In 1997 Abacha took it up to N20 per litre.
Since then, the price of fuel has continued to rise. The only reason often claimed for the hike by all governments was that the government was subsidising the price of petrol by various figures.”
READ THIS AND PASS IT ALONG. JOIN IN THE TEAM THAT WILL RELEASE NIGERIAN FROM IGNORANCE WHO CONTINUE TO ACCEPT AND TAKE THIS EVIL OF DEREGULATION AND SWALLOW IT WITHOUT QUESTION. Act now so that the baton of slavery is not pas over to your children. From Pastor Ayoola Iyana Ipaja [email protected]  u can also contact on face book “pastor ayoola iyanapaja”