#SoundOff: Nigerians, Reject Buhari Gov’t Extortion – N145 Fuel Price A Big...

#SoundOff: Nigerians, Reject Buhari Gov’t Extortion – N145 Fuel Price A Big Fraud

By Opinions | The Trent on May 17, 2016
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python dance MASSOB Biafrans Nigeria's President Muhammadu Buhari
General Muhammadu Buhari, arrives the Eagle Square for his Inauguration in Abuja, Nigeria, Friday, May 29, 2015. (Photo Credit: AP/Sunday Alamba)

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).

IN 2012
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

IN 2016
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.

COMPARATIVE ANALYSIS

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%

NOW,
At N118 per dollar in 2012 , the price proposed for PMS/LTR after removing subsidy, was N142. (All charges Included)

In 2016,
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.

RECALL,
Barrel of Crude Oil also decreased by 66.10%.

Therefore,
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.

Without subsidy,
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

Also note:
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.

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