While I am quick to applaud the new price regime of PMS, a wise but dirty political move, I remain resolute that as usual GEJ keeps on getting the fundamentals wrong. Now his desperation is not only apparent but scary. As a businessman, whose life line relies on very cheap fuel to make business operations look encouraging, it is a welcome news. But when you look at the last one week, certain things come into perspective. First, his visit to Maiduguri and second his pump price review. Then it sinks, all are part of an elaborate greek gift GEJ has given us a very big Trojan horse and we are all mesmerised by it. But when night falls and we are no longer watching, what sinister thing would we find in this gift? How did we economically arrive at a #10 price reduction? With our present economic state can we afford it? If yes, can we go further still? Cost structure of crude oil Finding/development. - $3.5 Production cost. - $1.5 Refining Cost. - $12.6 Pipeline transport. - $1.5 Distribution/bridging fund margin - $15.69 True cost of one litre of producing a liter of petrol anywhere in Nigeria when refined is equal $34.8 =$34.8/159 liters(One barrel) =$0.219 x #190(exchange rate)=41.61k. Add tax of #5 + #41.61k and the total is #46.61 to produce a liter of fuel in Nigeria. Cost is #46.61 kobo and GEJ says we should enjoy fuel at #87.00 and the difference between cost and sales is #45.39k Fellow Nigerians, I challenge anyone to dispute this figures, the only figure that is not stable is the exchange rate. Should we be angry at this deception? We infact should be fuming? But what percentage do we refine locally? How much are we buying refined PMS per liter? We need full disclosure Nigerians please let us ask these questions and many others. This is not price reduction but political deception. Kindly share this update and let Nigerians know the #87 is a big LIE!!!
Posted on: Mon, 19 Jan 2015 08:41:10 +0000
Trending Topics
Recently Viewed Topics
© 2015