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The Real Cost Of Nigeria Petrol- By Dr. Izielen Agbon

On December 10, 2011, if you stopped at the Mobil filling station on Old Aba
Road in Port Harcourt , you would be able to buy a litre of petrol for 65 naira or
$1.66 per gallon at an exchange rate of $1/N157 and 4 litres per gallon. This is the
official price. The government claims that this price would have been subsidized
at N73/litre and that the true price of a litre of petrol in Port Harcourt is N138/litre
or $3.52 per gallon.

BY DR. IZIELEN AGBON

DEC 15, 2011

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n December 10, 2011, if you stopped at the Mobil lling station on Old Aba Road in Port
Harcourt , you would be able to buy a litre of petrol for 65 naira or $1.66 per gallon at an

exchange rate of $1/N157 and 4 litres per gallon. This is the ocial price. The government claims
that this price would have been subsidized at N73/litre and that the true price of a litre of petrol
in Port Harcourt is N138/litre or $3.52 per gallon.

They are therefore determined to remove their subsidy and sell the gallon at $3.52. But, On
December 10, 2011, if you stopped at the Mobil Gas station on E83rd St and Flatlands Avenue in
Brooklyn, New York, USA, you would be a able to buy a gallon of petrol for $3.52/gallon. Both
gallons of petrol would have been rened from Nigerian crude oil. The only dierence would be
that the gallon in New York was rened in a US North East renery from Nigerian crude
exported from the Qua Iboe Crude Terminal in Nigeria while the Port Harcourt gallon was
either rened in Port Harcourt or imported. The idea that a gallon of petrol from Nigerian
crude oil cost the same in New York as in Port Harcourt runs against basic economic logic.

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Hence, Nigerians suspect that there is something irrational and shy about such pricing. What
they would like to know is the exact cost of 1 litre of petrol in Nigeria .

We will answer this question in the simplest economic terms despite the attempts of the
Nigerian government to muddle up the issue. What is the true cost of a litre of petrol in Nigeria
? The Nigerian government has earmarked 445000 barrel per day throughput for meeting
domestic renery products demands. These volumes are not for export. They are public goods
reserved for internal consumption. We will limit our analysis to this volume of crude oil. At the
renery gate in Port Harcourt, the cost of a barrel of Qua Iboe crude oil is made up of the
nding /development cost ($3.5/ bbl) and a production/storage /transportation cost of $1.50 per
barrel.

Thus, at $5 per barrel, we can get Nigerian Qua Iboe crude to the rening gates at Port Harcourt
and Warri. One barrel is 42 gallons or 168 litres. The price of 1 barrel of petrol at the Depot gate
is the sum of the cost of crude oil, the rening cost and the pipeline transportation cost.
Rening costs are at $12.6 per barrel and pipeline distribution cost are $1.50 per barrel. The
Distribution Margins (Retailers, Transporters, Dealers, Bridging Funds, Administrative charges
etc) are N15.49/litre or $16.58 per barrel. The true cost of 1 litre of petrol at the Mobil lling
station in Port Harcourt or anywhere else in Nigeria is therefore ($5 +$12.6+$1.5+$16.6) or $35.7
per barrel . This is equal to N33.36 per litre compared to the ocial price of N65 per litre. Prof.
Tam David West is right. There is no petrol subsidy in Nigeria . Rather the current ocial prices
are too high. Let us continue with some basic energy economics.

The government claims we are currently operating our reneries at 38.2% eciency. When we
rene a barrel of crude oil, we get more than just petrol. If we rene 1 barrel (42 gallons) of crude
oil, we will get 45 gallons of petroleum products. The 45 gallons of petroleum products consist
of 4 gallons of LPG, 19.5 gallons of Gasoline, 10 gallons of Diesel, 4 gallons of Jet Fuel/Kerosene,
2.5 gallons of Fuel Oil and 5 gallons of Bottoms. Thus, at 38.2% of rening capacity, we have
about 170000 bbls of throughput rened for about 13.26 million litres of petrol, 6.8 million litres
of diesel and 2.72 million litres of kerosene/jet fuel.

This is not enough to meet internal national demand. So, we send the remaining of our non
export crude oil volume (275000 barrels per day) to be rened abroad and import the petroleum

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product back into the country. We will just pay for shipping and rening. The Nigerian
government exchanges the 275000 barrels per day with commodity traders (90000 barrels per
day to Duke Oil, 60000 barrels per day to Tragura (Puma Energy), 60000 barrels per day to
Societe Ivoirienne de Ranage (SIR) in Abidjan, Ivory Coast and 65000 barrels per days to
unknown sources) in a swap deal. The landing cost of a litre of petrol is N123.32 and the
distribution margins are N15.49 according to the government. The cost of a litre is therefore
(N123.32+N15.49) or N138.81 . This is equivalent to $3.54 per gallon or $148.54 per barrel. In
technical terms, one barrel of Nigerian crude oil has a volume yield of 6.6% of AGO, 20.7% of
Gasoline, 9.5% of Kerosene/Jet fuel, 30.6% of Diesel, 32.6% of Fuel oil / Bottoms when it is
rened.

Using a netback calculation method, we can easily calculate the true cost of a litre of imported
petrol from swapped oil. The gross product revenue of a rened barrel of crude oil is the sum of
the volume of each rened product multiplied by its price. Domestic prices are $174.48/ barrel
for AGO, $69.55/ barrel for Gasoline (PMS or petrol), $172.22/ barrel for Diesel Oil, $53.5/ barrel for
Kerosene and $129.68/ barrel for Fuel Oil. Let us substitute the government imported PMS price
of $148.54 per barrel for the domestic price of petrol/gasoline. Our gross product revenue per
swapped barrel would be (174.48*0.066 +148.54*0.207+172.22*0.306+ 53.5*0.095+129.68*0.326)
or $142.32 per barrel. We have to remove the international cost of a barrel of Nigerian crude oil
($107 per barrel) from this to get the net cost of imported swapped petroleum products to
Nigerian consumers. The net cost of swapped petroleum products would therefore be $142.32
$107 or $35.32 per barrel of swapped crude oil. This comes out to be a net of $36.86 per barrel of
petrol or N34.45 per litre.

This is the true cost of a litre of imported swapped petrol and not the landing cost of N138 per
litre claimed by the government. The prosubsidy Nigerian government pretends the price of
swapped crude oil is $0 per barrel (N0 per litre) while the resulting petroleum products is
$148.54 per barrel (N138 per litre). The government therefore argues that the subsidy is
N138.81N65 or N73.81 per litre. But, if landing cost of the petroleum products is at international
price ($148.54 per barrel), then the takeo price of the swapped crude oil should be at
international price ($107 per barrel). This is basic economic logic outside the ideological prisms
of the World Bank. The traders/petroleum products importers and the Nigerian government are

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charging Nigerians for the crude oil while they are getting it free.

So let us conclude this basic economic exercise. If the true price of 38.2% of our petrol supply
from our local renery is N33.36/litre and the remaining 61.8% has a true price of N34.45 per
litre, then the average true price is (0.382*33.36+0.618*34.45) or N34.03 per litre. The ocial
price is N65 per litre and the true price with government gures is about N34 per litre (even
with our moribund reneries).

There is therefore no petrol subsidy. Rather, there is a high sales tax of 91.2% at current prices of
N65 per litre. The labor leaders meeting the President should go with their economists. They
should send economists and political scientists as representatives to the Senate Committee
investigating the petroleum subsidy issue. There are many expert economists and political
scientists in ASUU who will gladly represent the view of the majority. The labor leaders should
not let anyone get away with the economic fallacy that the swapped oil is free while its rened
products must be sold at international prices in the Nigerian domestic market.

The government should explain at what price the swapped crude oil was sold and where the
money accruing from these sales have been kept. We have done this simple economic analysis
of the Nigerian petroleum products market to show that there is no petrol subsidy what so ever.
In the end, this debate on petrol subsidy and the attempt of the government to transfer wealth
from the Nigerian masses to a petrol cabal will be decided in the streets. Nigerian workers,
farmers, students, market women, youths, unemployed, NGO and civil society as a whole
should prepare for a long harmattan season of protracted struggle. They should not just embark
on 3 days strike/protests after which the government reduces the hiked petroleum prices by a
few Nairas. They must embark upon in a sustainable struggle that will lead to fundamental
changes. Let us remove our entire political subsidy from the government and end this
petroleum products subsidy debate once and for all. It is time to bring the Arab Spring south.

Izielen Agbon Izielen Agbon writes from Dallas, Texas. izielenagbon@yahoo.com

He is former HOD , Petroleum Eng Dept, former ASUU chairman University of Ibadan, trained
many operators in nation's energy industry with pratical experience on our practices and policy
focus in the last 20yrs
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Jointhediscussion
Femi 4yearsago

IreallycommendDr'sposition.AndexpectthatthosewhohaveaccesstotheFGfigures
shouldbetheonesrefutingthis.itshouldbetheREALcostVstheFGCostofproducingalitre
brokendowntotheminutestdetail.

Reply Share

Anonymous 4yearsago

Ithoughtiwasmadwhenmycalculationlanded@N38/ltr.From42galofcrudeoil,igot36gal
ofdifferentpetroleumproductsegpms,ago,atk,etc..56galforover6000otherproductseg
rubber,wax,polyrawmaterial,etc...ThoughmyconversionratewasN160to$1.Thankyou
sir.Inowknowthatamnotinsane.

Reply Share

Anonymous 4yearsago

hahahahaha....findinganddevelopmentcost@$3.5/barrel.....wheredidthisfellagethis
petroleumPHD.....methinksitshouldberescinded...andforallthestaunchsupportersof
crudecosting@$5/barrel,youdon'tknowjackabtpetroleumprospecting!!!

Reply Share

Dammie 4yearsago

IunderstandthefactthattheDr'sanalysismaybebogusatsomepointsbutpleaseletusbe
realisticaboutthings.HehasmadethepointclearevenifsomeNigerianswillnotacceptitbut
icanconfidentlysayitthatonlyanillogicalbeingwillfindauselessexcusetodentwhathas
beenpainstakinglyexplainedhere.It'ssosimpleandstraightforward!Thegovermentisso
incrediblycorruptandabsolutelydoesn'tcareabouthercitizens!Theycan'tgiveusa
straightforward,simpleandlogicalexplanationforwhytheyhavetoremovethesubsidy.Take
itorleaveit,2012isgoingtobeactionpackedforNigeria.Things'llgodownandlotsof
secretswillbeexposed.OurLabourleaders,TradeUnionleadersshouldhelpusfightthiswar
forus.Atthisage,thelargerpercentageofNigeriansstillliveonlessthanadollaraday.It's
sickandcrazy,shamefulanddisgusting!

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Emmanueltajie>Dammie 4yearsago

Killingcorruptionisstrictlythedutyofthethreeorgansofgovernment(theyknowthe
waytoeradicateitbutinsteaddecidetobekissingcorruption),2011manygovernors
stillengagedinpublicfundembezzlement,howcanwetalkofkillingcorruption,when,
'youcannotusecorruptleaderstofightcorruption'corruptionisveryeasytokill,'how'
simple,1=establishacourtforfasttrailofcorruptioncases,2=enactalawwithstrict
punishmentminimumoffifteenyearinprisonforembezzledamountrangingfromone
nairatoonebillionnaira,3=andfromtwobilliontoninebillionlifeimprisonment,and
fromtenbillionandabovedeathsentence,letsdothisandwithinsixmonths,therewill
remainlittleornocorruptioninthisland.onfuelsubsidytheDrwastotallyrightinhis
analysis,anywhocriticizehimisatraitorandhavestakeingovernmentdeceitfulgains

Reply Share

Anonymous>Dammie 4yearsago

Killingcorruptionisstrictlythedutyofthethreeorgansofgovernment(theyknowthe
waytoeradicateitbutinsteaddecidetobekissingcorruption),2011manygovernors
stillengagedinpublicfundembezzlement,howcanwetalkofkillingcorruption,when,
'youcannotusecorruptleaderstofightcorruption'corruptionisveryeasytokill,'how'
simple,1=establishacourtforfasttrailofcorruptioncases,2=enactalawwithstrict
punishmentminimumoffifteenyearinprisonforembezzledamountrangingfromone
nairatoonebillionnaira,3=andfromtwobilliontoninebillionlifeimprisonment,and
fromtenbillionandabovedeathsentence,letsdothisandwithinsixmonths,therewill
remainlittleornocorruptioninthisland.onfuelsubsidytheDrwastotallyrightinhis
analysis,anywhocriticizehimisatraitorandhavestakeingovernmentdeceitfulgains

Reply Share

kayodeodeleye 4yearsago

thankyou,dr,forthrowinglightonthismatter.manyofusknewthatthewholeoilsubsidything
isevilasthesocalledsubsidydoesnotexist.manypatriotshavespokenonthematter
includingpeoplewhoshouldknowlikeProfTamDavidWestandProfSamAlukobutour
goodluckleaderisstretchinghislucktoofarbysayingnogoingback.Arabspring,Nigerian
editionbeckons

Reply Share

OilSubsidy 4yearsago

GoodmenlikethisDrhavetakentheirtimetowritearticleslikethisbutour(thecriticalmass
ofthecitizenry)responsesmakethatdifference.Oursilencecanreallyfrustratemoregood
menfromsteppingforwardasnoonewantstocryhisvoicehoarseinthewilderness.This
exposeisworthactinguponbythemasses.

Reply Share

Anonymous 4yearsago

Youareabsolutelyrightsir,andtheyendofbringingsillyexcuses2decieveNigerians.

Reply Share
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Reply Share

SeyiPaul 4yearsago

Ifeanyi,u'reoneofnigeria'sproblems.idontknowurage.it'sshameonuthatudontknowwe
havecrudeoilinnigeria...bcosidontunderstandwhatumeanbycostofcrudeoilinnigeria.
perhapsuneed2completesecondaryeducationbeforecomebackhere.

Reply Share

JSalvage 4yearsago

HereDrIzielenmayhavegothisindividualfiguresrightbuthegotmostofhiscalculationsand
presentationswrong.Astatisticianoranaccountantnotnecessarilyaneconomistwouldhave
presentedthefiguresfarbetterfortheordinarysuchasJonathantocomprehend.
WhatIzielenandsomeanalysttellusisthatwithoutcorruptioninthesystem,thefuelpump
pricewouldhavebeingeitherN65perlitreorless.Andthattheclaimsubsidyinthesystemis
fictitious.Jonathanhasdemonstratedthisinhiscurrentbudgetbynotstatingfurtheramountof
subsidywhilethefuelpumppriceremainsatN65perlitre.Thismeanstherehasnotactually
beenanysubsidybutallalongswindledtrillions.
TheNLChasnothingabouttoprotestastherehasnotbeenanysubsidyremoved.Ithasnot
evenbeenthere.WhatJonathanshoulddonowistorecoverthroughtheEFCCthetrillionsof
Nairathathavebeenpaidoutovertheyearsasnonexistingsubsidyfromtherecipients.

Reply Share

Anonymous>JSalvage 4yearsago

wellpresentedfiguresforanargumentthat'ssoimportanttoournation,Nigeria..butI
couldnotverifythemtheissueisAREWESAYING'subsidy'isFICTITIOUSand
neverreallyexist,thereforeafraudulentgroupisusingittostealfromthetreasuryOR
GovernmenthadgoodintentionsforthepeopleINITIALLY..untilsomecriminals
ABUSEDthe'subsidy'?.
NowletasktheObviousQuestion..subsidygoes,Right?!ThenPetroleumPrices
remainthesame...ifanything,govtshouldreducepetroleumprices,Right(basedonur
writeup)?ANDNOTINCREASEpumppricesbecausethewholeargumentTHAT
BOUGHTin'subsidy'inthefirstplacewasmisleading/fraudulenttothe
'system'...whichmeanssomepersonsoutthereareliable(asitwere)!

Reply Share

UbongEkpo 4yearsago

Theauthorofthispieceisquiteknowledgeable,andseemstohavethoroughlycheckedhis
facts.
IhopeGovernmentwilllookatthesefactscarefully.
Perhapsthosebenefitingfromthesituationhavesuccessfullymisledusontheactualcostof
petroleumproductsallthiswhile,toourcollectiveloss.

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petroleumproductsallthiswhile,toourcollectiveloss.

ThisisoneofthefewtimesSaharaReportershavebeenveryobjective,candid,apoliticaland
unsensational.
Pleasekeepitup!

Reply Share

Anonymous>UbongEkpo 4yearsago

Thisisanicepieceofreport.Amoremediumofpublicatio
Shouldbesought.Igotthisviaafriend.Ithinkother
Methodofbroadcastbeusedsomorepeoplecan
HaveAccesstothisinformation.Thanks

Reply Share

Lanre 4yearsago

WhereiscostofpurchaseofcrudeoilbarrelfromtheFederalGovernmentbyNNPCforthe
refineries.Thiscalculationisveryveryflawed.Don'tbelievehim.

Reply Share

SAKARA>Lanre 4yearsago

thecostofabarrelofcrudeis$5.00.kindlygothroughthearticleoncemore

Reply Share

gbelegbo>Lanre 4yearsago

Evenifyouaddtheinternationalpriceofcrude,theactualpriceofFuelinNigeria
cannotbeuptoN65.Moreoverwhythegovernmentlayclaimtosubsidizinglocalfuel
consumption100%.When450,000barrelofcrudeisrealisedtoNNPCdailyforlocal
consumption.Willthisbepriceatinternationalcrudeprice,whenthegovernmentmake
aprojectionofthepriceonwhichtheannualbudgetisbased,forexamplenextyearis
$70abarrel,soevenifwewillcalculatethecostofthis450,000itshouldbeatthe
governmentbudgetprice.450,000willproduceover30MlittersofFuel.The
governmentclaimofover30Mlittersofdailyfuelconsumptionisalsosuspicious,over
200%increasewithin3months.

Reply Share

Anonymous>Lanre 4yearsago

Ifyourthinkthereportpresentedisflawless,itsnotenoughtosayso.UMUSTpresent
urstocounterit.Else,wellbemadetobelievethatuhaveashareinthesubsidyitself

Reply Share

Anonymous>Lanre 4yearsago

WeshouldcomparefurthertheminimumwageintheUSAtothatofNigeriaasagainst
relativepumppricesinbothcountries.ThisIbelievewouldsimplifytheDr.'sanalysis.
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Reply Share

IbemeIfey 4yearsago

Brilliant!DrAgbon.Theproblemwiththisisthattheinvestorswouldnotliketoproduceandsell
atDrAgbon'sbrilliantcalculations.EvenouNNPCstaff(PENGASANandNUPENG)would
sabotageourRefineriesifwetrytoproduceatthesecalculations.
Neverthelessletthesubsidystayasourversionofsocialsecuritycost.TheGovtcanbuy
fromanyprivaterefineryinvestorattheinternationaloffshorepriceasincentivetoattract
foreigninvestmentandprovideemployment,enhancehumancapacitybuildingandknowhow,
avoidinflation,etc.
Weonlyneedsmartthinkingatourcorridorsofpower

Reply Share

agbelero 4yearsago

NicejobDr.Agbon,youranalysisisfromsomebodywithfactandfiguresandaninsider.
Thankyou.However,wearemissingsomethingthathasbeendodgingthisdebate:thereality
ofacapitalistfreemarketsystem.LetusgotoProfD.Westanalogyofaproducingand
sellingacupofGarrilocallyatN10.Inafreemarket,ifthereisamarketforthatcupofGarriin
aneighbouringcountryatsayN30anditwillcostonlyN5togetitthere,peoplewillgetitthere
tomaketheN15profitandcreatescarcityathome.Thesamegoestoahotcommodityas
gasoline.Yes,wecanproduceandselllocallyforlessthanN65,butifthereismarket
elswhereforN140perlitre,youbetpeoplewilltakeitthereandmakethatmargin.Thisis
wheresubsidycomesin.Thesolutionisforgovttolettheprivatesectorruntheshow.

Reply Share

AminuUmar>agbelero 4yearsago

Butprotectingthenationbordersispartofgovernmentresposibilities.Sonowthatthe
truecostofalitreofpetrolhasbeenexposedbythiswonderfulwriter.Isuggestthe
Governmentshouldusethefundstheyclaimareusedforsubsidizesfueltostrengten
securingourborders.

Reply Share

LanreAfebuameh>agbelero 4yearsago

Youareindeedrightaboutthetemptationtosmuggleittoseekhigherreturnsbutitis
theresponsibilityofthegovernmenttocontrolsmugglingtoguaranteeproductsremain
withinthecountrysothatthepurposeofsubsidywhichistotakeextraburdenoffthe
peopleismet.SaudiArabia'sneighbourssellathigherpricesandtheSaudi
governmenthasnotmovedtoequalisepriceswithherneighbourstoprevent
smuggling.Thisargument,therefore,isnotvalidconsideringthefactthatgovernment
shouldbeforthepeoplenotagainstthem!

Reply Share

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IfeanyiDemocracy4ever>agbelero 4yearsago

@Oloriebi..,soumeanthefreightchargesaccountforthewidemarginbetweenthe
costofgettingcrudeoiltoPHRefinery(whichis$5perbarrel,accordingtoyour'Dr')
VSsayarefineryintheUS($107perbarrel).Common!OnlyaFOOLwillbelievethat.
Ifthatwerethecasethemultinationaloilcompanieswouldhavelitteredthewholeof
Nigeriawithrefineries.
@Jay..,idontknowhowoldyouarebutsufficeittosaythatonlyaFOOLISHbusiness
manwillnotfactorinthecosthisstartingrawmaterialintothefinalcostofhisgoods.
Whatdoyoumeanbythe"rawbeefisyours"?Exceptu'rareMAGICIANwhocan
produceacoworgoatbythesnapofhisfingersoryouSTOLEthecoworgoatfrom
whichyougottherawbeef.YouguysarejustblindedbySENTIMENTStobelieve
everySILLYarticleprovideditisPROsubsidy.Thereisacosttoeveryraw
material,whichgoesbeyondcostofextraction.NNPCstartedpayinginternational
marketpriceforthecrudeitrefinesasfarbackas2003

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sam>IfeanyiDemocracy4ever 4yearsago

Mrifeanyiplsbringforthyourownlogicalcalculationsbeforeyoouattackthe
veracityofanexpertinthefieldIshuddertothinktofwhatyouareinreality
doingmaybeu'rtrying2currydfavorofacorruptgovtoru'rinfactneckdeep
intandemwiththisbrazeencorruptionplsbringforthurownanalysismostif
notallofdreadersherearewelleducatedwewouldbeable2siftandweigh
bothanalysisuntilthenplsinthenameofallthingsfairstopthisyourbaseless
criticism.

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lekanabioye>sam 4yearsago

plsanyonegettingthispieceofinfoshouldspreaditviavariousmeans
orchannelsi.eFacebook,Twitter,etc

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IBRAHIMSAAD>agbelero 4yearsago

YESMR.AGBELERO,PEOPLEWILLSMUGGLEGOODSTOWHERETHEYARE
MOREEXPENSIVE.THATISWHYGOVERNMENTSSPENDBILLIONSTO
FINANCETHEIRCUSTOMDEPARTMENTS,POLICE,INTERNALSECURITYAND
ARMY.IREALLYUNDERSTANDYOURPOINTOFVIEWBECAUSEOFLATE
THESEDEPARTMENTSSEEMTOBENONEXISTENTINNIGERIAAND
SOMETIMESONEHASTOJOGNIGERIANSMEMORYTOREMINDTHEMTHAT
CUSTOMSANDPOLICEREALLYEXISTS.THEFINANCEMINISTERNGOZI
ALSOSHAREDYOUROPINIONONTHIS.SHESAIDSMUGGLINGOFTRUCK
LOADSOFFUELISWHYWEMUSTREMOVESUBSIDY.ASIFAGOVERNMENT
THATCANTSTOPA33,000LITERTRUCTATTHEBOARDERISWORTHITS
NAME.
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Agbelero>IBRAHIMSAAD 4yearsago

Yes,uhaveapoint,buthowmanyofourinstitutionwork?Theybeingtakeover
byracketeersandmoneychangers.Theyaresopowerfulthegovthaslost
control.Godhelpus

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MukhtariWali 4yearsago

NigerianswillDEMANDforareductiontotherealcostofpricesofpetroleumproductsinNaija.
IhopethecurrentleadersinNaijaareready.ItistimetobringtheArabspringsouth!!

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Anonymous 4yearsago

Caughtupinthepast.Futurenotverybright,presnethardlyworthit,whyareyousocaughtup
inafailednation?
Thereisnosecurity,scarcelyenoughequity...I'mtiredandgoingtosleep.

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Anonymous 4yearsago

IfthisBRAIN(writer)isindeedaNigerian?Ifhetruelyis,thenthankGodAlmightythatsome
Nigeriansstillexist,thatmayindeedhavethespiritofExcellence!NottheIBB's,Atiku's,
Patricia'sBankole's,theIwu'sindeedthesocalledleadersandtheiraidsandadvicerswho
havebroughtthishithertogreat,greatNationthislow.
Thiswriteupisindeedanexcellent,informativeandwellresearchedpiece.Iamdefinitely
enlightendandwouldengageissueswithinmyownsphereofinfluence(regardingthisfuel
subsidywahahla),withsomemeasureofknowledge.
ThankyouDr.IzielenAgbon,forthisbodyofinformation,
Godson

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Anonymous 4yearsago

ihavealwysknownthatsomethingiswrongwiththisissueofsubsidybecausetherehas
neverbeenanycoincisedata&informationonit.Unwittenlytoothishasbecomeitsundoing.
Nobodyingovernmentcircle,includingauntyNgozihasbeenabletoprovetheavailabiltyof
subsidyanywhere.Itpainsmethatthewholepopulacehascowedforsuchlenghtoftimebut
howdoweexpectanythingdifferentwhenallthesewhileincompententleadershavebeen
forcedonusatvariouslevels.God!Youaretheonlyhopewehave.

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investor 4yearsago
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investor

TheRealCostOfNigeriaPetrolByDr.IzielenAgbon|SaharaReporters

Priceofpetrolissourceofinvestment.doyouknowthatundertheleadershipofGEJ,Nigeria
islaunchingitsfirsteverETFnextweek.wellifyoudontknowwhatisaneft,youcanreadall
aboutithere
http://www.easykobo.com/News.a...

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Drudge 4yearsago

Thismathematicalanalysisisverycorrect.YoureadtheDr'srenditionwithoutcomprehending,
ordoyouhaveapersonalvendettawiththeDr?Evenifthegovernmentsellscrudeoilat
$107.00abarrel,howmuchprofitaccruesfromthesales?HasyourPresidentandhis
ministersbeenabletodemonstratewithfigureswherethesubsidycomesfrom?PLEASE!!!

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Whala 4yearsago

@Ify...4ever:TheDr.iscorrectsinceyoucan'tfactorintothemathwhatyouhave.Only
productionandlogisticalcostscanbeused.Hehasthenumberstoprovehisassertionswhile
youandthatdrunkardarejobberscontributingnuisance!
@Deri:Thebottle.Ignorethebottleforwhileandgetablastoffreshair.NotDumbo'sfresh
air,buttherealfresh,oceanbreeze.You'rekillingyourselfandIdon'treallygiveahoot.You
aremoreirritatingthanahousefly,whynotmakesenseforonesecondinyourfrustratedlife!
KnowledgeablefolkslikeProf.T.D.WestandDr.Agbonhavecalledsubsidyreovalthescam
thatitisyet,foolskeepmakingnoiseforcheapattention.Thescourgeinthebudgetisthe
securityallocationof920bnairainacountrywithoutsecurity.That'smoneybudgetedforgraft.
Sad.Nigeriaisasadcase!

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ichizor 4yearsago

IthinkAgbon'scalculationisreasonable.
LetusrecalltheanalysisofthegroupledbyEngineerMartinOnovo,apetroleumengineerand
consultant.In2010,thegrouparguedthatthepriceofPMS(Petrol)inNigeriashouldnot
exceedN38.50.WhenyoucomparethecalculationsoftheseexpertsledbyEngr.Onovoand
theonebyDr.Agbon,itraisesalotofquestionsaboutthepeoplewhorunNigeria.
Ifyoucannotdothecalculation,pleasekeepquietandlearn!QED

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kay213 4yearsago

THISDERIISSICKANDFRUSTRATED.
iPITYHALFBAKELIKEU.
READARTICLE,DONTJUSTWRITE.
USEURHEAD!!!!URBRAINISDYINGSLOWLY.

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USEURHEAD!!!!URBRAINISDYINGSLOWLY.

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Drudge 4yearsago

Thisisapracticalexposofthefactsbehindtheillusionaryfuelsubsidy.Thesecondary
probleminNigeria,afterthegovernmentsitself,isthefactthatmajorityofthepeopleinNigeria
arenotexposedtofactsandfigures.Unlike,sayintheUSwherethereareradiotalkshowsat
everycornerthatdirectlycommunicateandbreakdowngovernmentactivitiestothecitizens.

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ChrisOgbogbo 4yearsago

Sofar,Dr.Agbon'sargumentshavebeenthemostscholarlyandlogicalanalysisonwhythe
Nigeriangovt.cannotbetalkingaboutsubsidy.Thosegovernmentapologistsonthisissue
shouldlistentothevoiceofwisdomandretracetheirsteps.ThoseofuswhoknowAgboncan
testifythatheisnotseekingcheapattention.Itisstillthatpatrioticzealinhimtocontributeto
thefatherlandeven
fromdistantTexas.

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ChrisOke>ChrisOgbogbo 4yearsago

Ilikethediverseviewpoints.ButIamnotcomfortablewiththeattacksonpersons
ratherthantheissues.IwonderwhyNigeriansalwaysgetfanaticalonalmost
everything.Methinkthatitshouldhavebeenreducedtoanacademicexercisewhereby
theopinionthatgivesusasuasivearguementwillcarrytheday.Butasituationwhere
folksbegintoattackandcastigateindividualsandeventheuniversitiestheyattended
tellsyouhowintellectuallydepravedweareinthiscountrybothhomeandabroad!
Doesourbodylawnolongerpermitfreedomofopinionandrighttoholdadissent
view?Allthosewhoareprobatingand(dis)probatingbywayofcastingaspersionson
thosewhoupholdthierviews,aretheynowbetterthanthenotoriousBokoHaramof
today?Makeyourpointanddon'tattackpersons.Sothatyouwillnotguiltyofthesame
offece.

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wazobiareport.com 4yearsago

'Tisjustlikethesatiristsaid:
Petroltobecheaperaftersubsidyremoval:Subsidy?WhatSubsidy?Saysexpert
http://www.wazobiareport.com/r...

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Adetayo 4yearsago

thehullabalooovertheremovalpetroleumproductssubsidyinNigeriaisveryfundamental.the
problemishistorical,ideological,etc.thepositionofDrIzielenAgbonisbothadmirableand
revealing,butalsofallaciouswhennotviewedagainstsomebackgroundsi.eNigeria's
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revealing,butalsofallaciouswhennotviewedagainstsomebackgroundsi.eNigeria's
internationalobligationslikeOPECcartelandthecapitalistsystem.e.gmostradicalscholar
whocampaignedvigorouslyforanewworldordermosttimesfailtodiscussthehazardsof
suchbalancingtheworldeconomy.theeffectofgrowthindevelopingcountriesandwestern
slowdown.
ithinkpetroleumisanelitistgoods.soidon'tmindtheremovalaslongasthegovernmentcan
provideviableservicesandinfrastructuretoalleviatethesufferingofthemasses.
myprotestisthis:theprovisionofsomebasicsinfrastructureisthehorsewhilesubsidy
removalisthecarriage.doitright,capitalismistransitory.thepeoplearesuffering.

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IBRAHIMSAAD>Adetayo 4yearsago

WHOISTHISADEBAYO?SOTHEBARBERMAN,THECASSETTESELLERS,
THEPEASANTFARMERWHONEEDSTOMOVEHISGOODS,AKARASELLER
WHOMOVESFROMHOMETOTHEMARKET,FOODSELLERTHATUSE
KEROSENE,THEVULCANIZERWHOUSEPETROLINHISAIRPUMP,THE
OKADAMANANDTHETAILORWHOUSESMALLGENERATORAREALL
ELITISTS,RIGHT!FROMWHICHPLANETARETHESEPEOPLECOMING?
NGOZIONCECLAIMEDTHATFUELPRICEINCREASEWILLONLYAFFECT
PEOPLEWHOHAVETHREECARS.ANDSHEISSAIDTOBEABRILLIANT
ECONOMISTORBANKER.IAMSORRYMR.ADEBAYOBUTYOURPOSITIONIS
THETHOROUGHLYDISCREDITEDPOSITIONOFSUBSIDYREMOVAL
ADVOCATESOFTIMEGONE.
WEUNDERSTANDYOURSTRATEGY,HAVINGNOPOINTSAGAINSTTHIS
BRILLIANTPIECEFROMANOBVIOUSLYPATRIOTICNIGERIANYOUPEOPLE
ARENOWRESORTINGTOTAKINGAHITONIRRELEVANTTHINGSTODIVERT
PEOPLE'SATTENTIONFROMTHEFACTSHERE.ITWONTWORK.

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Anonymous>Adetayo 4yearsago

SaharaReporters.comisanoutstanding,groundbreakingnewswebsitethatencouragescitizenjournalists
toreportongoingcorruptionandgovernmentmalfeasanceinAfrica.Usingphotos,text,andvideo
dynamically,thesiteinformsandpromptsconcernedAfricancitizensandactivistsgloballytoact,
denouncingofficiallysanctionedcorruption,thematerialimpoverishmentofitscitizenry,defilementofthe
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environment,andthecallousdisregardofthedemocraticprinciplesenshrinedintheconstitution.

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