FG weighs crude discounts, direct supply to refineries
The Federal Government is considering crude oil discounts and direct supply to refineries to address pricing and logistics challenges for domestic refiners Read More: https://punchng.com/fg-weighs-crude-discounts-direct-supply-to-refineries/
The Nigerian government is evaluating two potential measures to alleviate constraints faced by domestic refiners in accessing locally produced crude oil. According to the Crude Oil Refinery-owners Association of Nigeria, one proposal would permit producers to deliver crude directly to refineries in close proximity, thereby minimizing logistical hurdles.
This arrangement would entail reconciling crude volumes at a terminal, potentially reducing the necessity for long-distance transportation. The second proposal would provide refiners with a discount on the price of domestic crude, compensating for the freight and handling expenses embedded within the Brent-linked price, despite not bearing these costs themselves.
These proposals are set to be discussed at the upcoming monthly meeting between the government, represented by the Nigerian Upstream Petroleum Regulatory Commission, domestic refiners, and crude oil producers. The review aims to address challenges related to feedstock access and reduce the cost of domestically sourced crude.
Written by urgent.news from Punch Nigeria's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
