CORAN Supports Forward Crude Sales Amid Price Ceiling Concerns

The Crude Oil Refiners Association of Nigeria (CORAN) has expressed support for the Federal Government's initiative to sell crude oil to domestic refineries through forward contracts. However, CORAN cautioned that a proposed petrol price ceiling could lead to reintroduced price regulation or subsidy obligations if the government does not clarify how excess costs will be managed.

CORAN spokesperson Eche Idoko stated that while forward crude sales could enhance certainty for refiners and mitigate exposure to international price fluctuations, critical issues such as crude availability, pricing arrangements, and existing contractual commitments need to be addressed. Idoko also raised concerns about whether major industry groups like the Oil Producers Trade Section and the Independent Petroleum Producers Group have endorsed the proposed framework.

He emphasized the need for an inclusive and commercially sustainable framework that supports both large and modular refineries. The current petrol prices in Abuja are around N1,410 per litre, exceeding the proposed N1,350-per-litre ceiling.