Negotiations Underway with Overseas Refineries for Cost-Effective Provision of Petrol, Diesel, Jet A1, and Cooking Gas

Retailers of petroleum products are nearing the final stages of negotiations with four offshore refineries about supplying various petroleum products. Reports indicate that a successful conclusion to these talks could result in the importation of more affordable petrol, diesel, aviation fuel, and cooking gas.
The president of the association has also called for the rehabilitation of the Warri and Kaduna refineries to improve the stability of the distribution chain. journalist Victor Enengedi, with over ten years of experience in covering Energy, MSMEs, Technology, and the stock market, reports that the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) is discussing the acquisition of 300,000 metric tons of Petrol, Diesel, Jet A1, and cooking gas for the Nigerian market by early 2024.
This move counters suggestions in some quarters to cap the retail pump price of petrol at N1,200 per liter. PETROAN President, Mr. Billy Harry, revealed in an interview that refineries in Kazakhstan and Houston are interested in partnering with the association.
He also mentioned exploring alternative funding methods to ease the pressure on Nigeria’s forex market and noted the importance of the recent rehabilitation of the Port Harcourt refinery. However, he emphasized the need to refurbish the Warri and Kaduna refineries for more stable distribution.
The economic challenges facing fuel retailers, especially those with daily sales under 5,000 to 10,000 liters, were highlighted, including rising diesel costs for generators and other overheads that are eating into profit margins.
Additionally, there has been clarification about the continuation of the petrol subsidy, dispelling rumors of an imminent petrol price increase.


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