Fuel subsidy is a Lie-Prof David Tam-West

There has been an ongoing national argument on the reality of the oil subsidy which some eminent
Nigerians have refuted against. Former
petroleum minister Prof Tam David West breaks
down his analysis of the falsehood behind the
fuel subsidy that has only enriched a few rich
and selfish individuals in Nigeria. See insightful
details.
1) One barrel of Crude oil = 42 gallons 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
N95/N85 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.