Occupy Nigeria

JANUARY 1st 2012

The Agency that regulates the pump prices of Petroleum Products in Nigeria announced that the price of Petroleum had increased from N65 to N141.00 It was so shocking to Nigerians because we were told the current budget will run till March 2012. Why the sudden change of plan by the Federal Government? This is not the New Year gift we wanted so why inflict this punishment on us? Ngozi Okonjo Iweala and Sanusi Lamido Sanusi are the champions of this oil subsidy removal and they are very vocal about their views. We are supposed to applaud them for being the modern day "voltron" defending the universe called Nigeria from the evil cabals who have been exploiting Nigerians. But the timing is very wrong. These two individuals are smart and intelligent and i believe they would have done their homework very well because this removal was allowed. The Petroleum Industry bill before the National Assembly has a clause that Oil subsidy removal will not be effected until the four Refineries in Nigeria are working at full capacity after the Turn Around Maintenance and two additional ones would be built. This is to ensure that locally we can refined the crude produced in Nigeria and not resort to importation of refined crude from abroad. Unfortunately the Bill has not been passed and the 4 Refineries are not working at full capacity. The proposed 2 new Refineries are not built and the Senate President David Mark saye he has 3 different Petroleum Industry Bills on his table. Let take a look at the analysis of a reknown Professor and a stakeholder in the Oil industry. The Analysis below is from Professor Tam David West former Petroleum Minister: 1) One barrel of Crude Oil = 42gallons or 159 litres 2) Our Refineries installed combined capacity = 445,000 barrels per day 3) Actual refineries capacity due to ageing equipment = 30% i.e133,500 barrels per day 4) 133,500 BARRELS = 21.2MILLIN LITRES 5) Local Required Consumption ( F. O. S) =12 millions 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 Distribution/Bridging fund Margin - $15.69 8)Cost of one litre of Petroleum anywhere in Nigeria should be : Total sum cost - $34.8. i.e $34.8/159 Naira equivalent. 0.219xN160 = N35.02K - Add tax N5. That will be N40.02K 9) This is how Federal Government arrived at N65.00 per litre in the first place. 10) Locally refined products cannot be sold at International price 11) We do not need FGN SUBSIDY as there was NONE 12) CORRUPTION is the problem but the WILL to enforce LAW on it is lacking from our Government. According to El Nasir Rufai, if the fuel is refined locally, THE TRUE COST OF A LITRE WILL BE N40.02 WHY ARE WE STILL IMPORTING? WHY NOT START REFINING LOCALLY? WHO IS BENEFITING FROM THE IMPORTATION OF FUEL FROM ABROAD? THE CABAL IS REAPING SO MUCH FROM OIL SUBSIDY BY GOVERNMENT AND THEY WILL DO EVRYTHING TO ENSURE ITS NOT REMOVED. The Government needs to deal with these people ruthlessly and not punish all of us. It is like throwing the baby out with the dirty bath water.