See what one barrel really becomes
One barrel does NOT become only petrol.
See what Nigerian crude really becomes — and why that matters for petrol pricing.
1
1 barrel
159 L
crude oil
Refinery splits it into many products
PMS / Petrol
Diesel
Jet fuel
Other
Illustrative proportions only.
The 30-second explanation
1
Nigeria needs petrol.
2
A refinery processes crude to produce it.
3
The same crude also produces diesel, jet fuel and other valuable products.
4
So you should not charge the entire crude cost only against petrol.
CRUDE
PMS + DIESEL + JET + OTHER PRODUCTS
Total Product Value
−
Crude Cost + Refinery Costs
=
Refining Margin
The big idea
Stop thinking of a barrel as petrol
1 BARREL OF CRUDE
PMS+Diesel+Jet fuel+LPG+Naphtha+Petrochemicals+Coke+Sulfur+Other products
THE ENTIRE BARREL DOES NOT BELONG TO PETROL.
If you charge the entire crude cost against petrol alone, the calculation can mislead you.
Explore one barrel