Illustrative assumptions — editable by the user
Step 1
How much crude does Nigeria need?
50.00 million litres of petrol per day — default teaching example
Linked to PMS demand: each barrel yields ≈92.7 L of petrol at the current mix and gain
Barrel size: 159 L (locked). A standard oil barrel is 42 US gallons ≈ 159 litres. It is a unit of measure, not a physical drum.
Illustrative main-fuel mix used in this model
TOTAL = 100%
Step 2
What does the crude cost?
Price basis
Cost of one barrel (FOB)
₦148,500
$110 × ₦1,350
Daily crude cost — dollars
$59.33 million
per day
Daily crude cost — naira
₦80.10 billion
per day
Step 3
But what about the diesel and jet fuel?
Market presets — product prices move with crude
Each preset sets crude, exchange rate and the diesel/jet/PMS benchmarks from the same period. Changing crude price or exchange rate now moves these benchmarks with it automatically (same dollar crack spread ratio). You can still type your own.
How the crude cost is shared out (per day)
Daily crude cost (from Step 2)
₦80.10 billion
Diesel indicative value/day
₦40.26 billion
23.64m L × ₦1,703.33
Jet fuel indicative value/day
₦28.61 billion
17.27m L × ₦1,656.17
Combined co-product credit
− ₦68.87 billion
Crude cost remaining after diesel + jet benchmark credit
₦11.23 billion
÷ 50.00m PMS litres = the teaching metric below
For comparison only — not subtracted
Petrol / PMS indicative value/day
₦59.27 billion
50.00m L × ₦1,185.40 benchmark
Valued at its benchmark, the petrol itself is worth about ₦59.27 billion a day. Petrol does not pay for the whole crude bill — diesel and jet already cover ₦68.87 billion of it, leaving ₦11.23 billion.
Net Crude Burden per PMS Litre
NOT PUMP PRICEThe share of the daily crude bill left for each litre of petrol, after diesel and jet fuel have paid their part.
Daily crude cost
₦80.10 billion
Diesel + jet credit
₦68.87 billion
Crude cost left for petrol
₦11.23 billion
Teaching metric — NOT PUMP PRICE
₦224.65/L
at $110/bbl and ₦1,350/$
Included in this number
- Raw crude oil cost (your $/bbl × ₦/$)
- Diesel benchmark value (credit)
- Jet fuel benchmark value (credit)
Not included (counted as ₦0)
- Refinery running costs
- Paying back the cost of building the refinery
- Refinery profit margin
- Pipelines, trucks and depot storage
- Wholesale and filling-station margins
- Taxes, levies and regulatory charges
This number is only a teaching metric showing why co-products matter. It is NOT the full production cost of petrol, NOT the refinery gate price and NOT the pump price.
Add these missing costs yourself in "Build your own petrol price scenario"Don't mix them up
Three different prices people often confuse
Manufacturing economics
- •Crude cost
- Refinery operating costs
- Capital / financing costs
- Value attributable to co-products
Refinery gate price
- •Manufacturing economics
- Refinery commercial margin
Pump price
- •Refinery gate price
- Transportation
- Storage
- Wholesale margin
- Retail/dealer margin
- Taxes / levies / regulated charges
Share
My Barrel to Pump Scenario
NOT PUMP PRICE- PMS demand
- 50.00 million L/day
- Crude required
- ≈539,000 barrels/day
- PMS output
- 50.00 million L/day
- Diesel output
- ≈23.64 million L/day
- Jet fuel output
- ≈17.27 million L/day
- Crude price
- $110/bbl
- FX rate
- ₦1,350/$
- Daily crude cost
- ₦80.10 billion
- Diesel + jet benchmark value
- ₦68.87 billion/day
- Net crude burden/PMS L
- ₦224.65/L
- Advanced cost adders (opex, margins, taxes)
- —
- Estimated pump price
- —
Illustrative educational scenario based on user assumptions. Net crude burden is a teaching metric; the pump-price line is a rough estimate only when extra costs are entered above — not an official, audited or actual pump price.