by Godsgyft St. Pius
Without any government subsidy petrol price should be N86.40. Here is why I conclude that General Muhammadu Buhari’s government is ripping off Nigerians. (PMS is petrol).
Dollar rate: $1 equals N156
A barrel of crude oil equals $118
PMS price per litre with subsidy N97
Proposed PMS price per litre without subsidy N142
Dollar rate: $1 equals N280
A barrel of crude oil equals $40
PMS price per litre with subsidy N86.50
PMS price per litre without subsidy N145.
1. Dollar Factor
% Increase in Dollar from N156 to N280 = 79.48%
2. Crude Oil Price Factor
% Decrease in barrel of Crude Oil from $118 to $40 equals 66.21%
At N118 per dollar in 2012 , the price proposed for PMS/LTR after removing subsidy, was N142. (All charges Included)
At N280 per dollar, with removal of subsidy, a litre of PMS should increase by 79.48% i .e. from N142 to N254.86 per litre at $115 per barrel of crude Oil.
Barrel of Crude Oil also decreased by 66.10%.
The actual price of a litre of PMS putting the decrease in barrel of crude oil into consideration, is N86.40k
So, tell your the minister of petroleum (Buhari), the minister of finance, etc to do the simple mathematics.
With increase in dollar
With decrease in international crude oil price
With all other charges
The actual price for a litre of PMS is N86.40k
PMS from the local refineries should be way cheaper than N86.40k
Godzgyft St Pius is a Nigerian and an ardent of true federalism, resource control for the people of Nigeria, and believes in self determination. He strongly believe in equity fairness and justice. Connect with him on Facebook.
The opinions expressed in this article are solely those of the author.