CORAN Raises Concerns Over N1,350 Petrol Price Ceiling

The Crude Oil Refiners Association (CORAN) has expressed support for the Federal Government's initiative to sell crude oil to local refineries through forward contracts. However, CORAN cautioned that the proposed petrol price ceiling of N1,350 per litre could result in financial losses without a transparent recovery mechanism.

The association noted that forward sales could stabilize crude supplies and mitigate exposure to international price fluctuations. CORAN spokesperson Eche Idoko emphasized the need for the policy to be commercially viable and accessible to all domestic refiners.

He raised questions about the support from key groups like the Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG), as well as who would oversee the arrangement. Idoko also highlighted concerns regarding the government's methodology for determining the N1,350 ceiling and the financial burden on refiners when production costs exceed this limit.

He urged the government to focus on increasing crude oil production and reducing refining costs rather than imposing administrative price limits.