Former Minister of Petroleum, Prof. Tam David West analysis on PMS refining cost.

IMPORTANT INFORMATION
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 by Professor Tam David West, former Petroleum Minister.

Posted: at 3-01-2012 11:56 AM (12 years ago) | Gistmaniac

Tel them if they'l listen,our leaders'r wicked,wat wil be d fate of d youths,nd poor mases?

Posted: at 3-01-2012 01:29 PM (12 years ago) | Upcoming

They gave us no security yet they move in crowds of army, no food yet he is submitting a budget with almost 1billion naira for his feeding, no electricity but they don't feel it.................and many other issues. We were happy and celebrating cos God allowed us to see a new year but they abruptly cut this happiness short with this wicked act of fuel subsidy removal. Where are we heading to?

Posted: at 3-01-2012 02:59 PM (12 years ago) | Gistmaniac

Evil government. Its so sad an Ijaw fool with an illiterate wife is the president and all these are happening. Had he not been in the government his Ijaw  people will be shouting and pointing to the north. Now what??

Posted: at 3-01-2012 07:00 PM (12 years ago) | Gistmaniac

How did this man who was a Minister in the 70's arrive at this figures or is he using the figures that he had when he was a minister?

Posted: at 4-01-2012 04:33 PM (12 years ago) | Newbie

thanks prof for enlighten us , so how come sanusi, iwalas and Jonathan are demanding for what they don't understand . we don't need reversal but the price of 45/ ltr.

Mykel.
Ibadan.

Posted: at 5-01-2012 01:02 PM (12 years ago) | Newbie