Please Do the Math: 2 million gallons of oil daily

During 2003 Protest

Nigeria exports over two million barrels per day of crude.

Obasanjo, who wants to end subsidies on imported oil products of some $2 billion annually, hiked petrol prices on June 20 by over 50 percent. The price of gasoline jumped from 26 naira (about 20 U.S. cents) a liter to 40 naira.

The country’s four ailing refineries are unable to meet local gasoline demand of more than 30 million liters a day, and Nigeria has to import to meet the shortfall.

During the 2012 Protest

It should be noted that before fuel subsidy was withdrawn on January 1, 2012, a litre of petrol in Nigeria was N65 (35 cents of a dollar). However, when the subsidy was withdrawn, a litre of petrol jumped to N141 (93 cents) overnight…

Given that fuel subsidy feeds corruption in the oil industry, it goes without saying that the first cause of action by the government is to close that pipeline of corruption. Specifically, “since the cost of crime, corruption, and trade mispricing accounted for $130bn in Nigeria between 2000 and 2009, representing an estimate of $14bn a year, which, in fact, exceeds the estimated “$8bn” yield from subsidy withdrawal, the obvious logical answer right now lies squarely with ending corruption in the oil industry, not fuel subsidy…

For Nigeria to claim the lion’s share of its own oil revenue, and for your administration to deliver your promise of “fresh air” with that revenue, the country must refine at least 90 per cent of its own crude oil – not just 30 per cent…


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