Marketers Engage Offshore Refineries for Cheaper Supply of Petrol, Diesel, Jet A1, Cooking Gas
- Petroleum products retailers are in advanced discussions with four offshore refineries regarding the supply of petroleum products
- According to reports, if the negotiations go through, it would lead to the supply of cheaper petrol, diesel, aviation fuel and cooking gas
- The association's president urged the government to also rehabilitate the Warri and Kaduna refineries to stabilise the distribution value chain
Legit.ng journalist Victor Enengedi has over a decade of experience covering Energy, MSMEs, Technology and the stock market.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has revealed that it is currently in advanced discussions with four offshore refineries regarding the provision of 300,000 metric tons of Petrol, Diesel, Jet A1, and cooking gas to the Nigerian market by the first quarter of 2024.
This announcement comes in response to opposing views in certain circles suggesting that the retail pump price of petrol should be capped at N1,200 per litre.
Source: UGC
Mr. Billy Harry, the National President of PETROAN, shared these details in a recent telephone interview with Daily Sun.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
He mentioned that the refineries situated in Kazakhstan and Houston express a strong interest in establishing a partnership with the association, aiming for mutually beneficial terms for both parties.
Marketers exploring alternative funding
The PETROAN President expressed the association's intention to explore an alternative funding model to alleviate the burden on the already strained Nigerian forex market.
He highlighted that the recent rehabilitation of the Port Harcourt refinery could provide some relief to Nigerians.
He, however, stated that the ultimate objective would have been to rehabilitate the Warri and Kaduna refineries to establish stability in the distribution value chain.
He underscored the challenging economic landscape, noting that fuel retailers barely manage to stay afloat, particularly those with daily sales below 5,000 to 10,000 litres.
He lamented the escalating generator diesel costs and other overhead expenses, significantly eroding profit margins.
Marketers need to depend less on NNPCL
Reacting to the marketers' position, Wale Ogundeji, an energy analyst, said it was time for marketers to depend less on NNPC Limited.
He said the diversification of fuel supply sources is crucial for the sustainability and reliability of the oil market in Nigeria.
He said:
Depending solely on the Nigerian National Petroleum Corporation (NNPC) for the supply of petrol exposes oil marketers to various risks, including potential supply shortages, bureaucratic inefficiencies, and geopolitical uncertainties.
To ensure a resilient and competitive market, oil marketers should explore alternative sources, fostering a more dynamic and responsive industry that can better adapt to fluctuations in demand and global oil prices.
He added that this not only mitigates potential disruptions but also promotes a healthier and more competitive market environment, ultimately benefiting both the industry and consumers alike.
NNPCL, marketers speak on final decision on ‘new’ fuel price in Nigeria
In related news, Legit.ng reported that NNPC Limited and marketers have conclusively dispelled the speculations regarding an imminent petrol price hike in the near future.
Marketers have affirmed their complete endorsement of NNPC's resolution to maintain the current prices, ranging from N600 to N630 per litre.
Moreover, there has been clarification on the reinstatement of the petrol subsidy, which President Bola Tinubu previously removed.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
