(http://www.thenationonlineng.net/2011/thumbnail.php?file=ProfDavidWest_496482926.jpg&size=article_medium)
Former Minister of Petroleum Resources Prof. Tam David-West, made a concrete analysis about cost of crude oil in and how much it should be sold to Nigerians.
See below:
- One barrel of crude oil= 42 gallons= 159 litre
- Our four refineries (at full capacity) = 445,000 barrels per day.
- Actual refineries capacity (due to ageing equipment)= 30% i.e 133,000 barrels per day.
- 133,000 barrels per day = 21.2 million litres per day.
- Local consumption (F.O.S.) = 12 million litres per day.
- It means that even our moribond refineries can actually meet our local consumption of petroleum.
- The cost structure of crude oil (i.e Qua Iboe Crude Oil) per barrel.
* Findings/development : $3.5
* Production cost : $1.5
* Refining cost : $12.6
* Pipeline/transportation : $1.5
* Distr/bridging fund margin : $15.69
* Total production cost : $34.8 per barrel.
- True cost of petroleum per litre in Nigeria at 160N to 1$
* Cost per barrel = $34.8
* 1 ltr cost = $34/159 ltrs = $0.219
* Naira equiv. = 0.219 *160 = N35.02k
* Add tax N5 + N35.02 = N40.02k
- Let FGN refute the above composition & if not they shld tell us how we came about N65.
- Locally refined products cannot be sold at international price.
- We do not need FGN subsidy as there was none in the first place.
- What is lacking is the will to enforce law on corruption.