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Why Is Kerosene More Expensive Than Petrol ? - Politics (7) - Nairaland

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Re: Why Is Kerosene More Expensive Than Petrol ? by Missionaire: 8:30am On Aug 06, 2022
lonelygem:


God bless you. I'm surprised Nigerians dont research. Ive tried to educate people on several valuable use of Kero beyond domestic cooking, back then when I was at the Depot, even Government value Kero more than anything. A typical importer might not be able to import kero more than once or twice a year and same importer brings in PMS and AGO 3 times a week.

And at every point Kero is discharged through our cargo line, it's a matter 2 hours or less, you just must see NNPC barge anchoring around the jetty waiting for the Kero vessel to disembark for it to batt and load same kero.

Kerosene known as DPK is same product treated as ATK and used for all aircraft and airplanes to move.

Kerosene has more value than PMS and it is responsible for high cost of aviation tickets in Nigeria today. There is high demand for Kero because many importers dont bring in Kero due to high cost of maintenance on it's storage.

STORAGE AND MAINTENANCE
As an importer, everytime you bring in Kero, you start preparing to receive it like a week before it arrives which is unlike bringing in other white products.

There is a process of evacuation which involves opening of man holes on both sides, providing kits for maintenance team to go into the tanks that has concealed over 10 million PMS for over 6 years with PMS still in there..

We used to dress fully kitted with oxygen gas bottles on our back, with high pressure jets capable of throwing 5 adults off their feet.

God forbid you miss your step and your gas cylinder or mask goes of, before you crawl your way back to the Manhole, you might have give up the ghost.

So, on average, importers spend about 6 Million for storage of DPK. And the process takes a whole week which is not so in PMS and AGO

We dedicate tanks for various products. But not in a case of DPK that you bring in just once in 4 years. In that case, whenever you are bringing in DPK, you must do thorough evacuation which would even make you lose about 8000 litres of the initial product, make you contract evacuation and proper venting of the tank, and wait for DPR to come and confirm and sign that the tank is safe for storage.


Re: Why Is Kerosene More Expensive Than Petrol ? by chimeremodlyn: 10:47am On Aug 06, 2022
There's no subsidy on kerosene
Re: Why Is Kerosene More Expensive Than Petrol ? by IronSponge23(m): 11:11am On Aug 06, 2022
lonelygem:


God bless you. I'm surprised Nigerians dont research. Ive tried to educate people on several valuable use of Kero beyond domestic cooking, back then when I was at the Depot, even Government value Kero more than anything. A typical importer might not be able to import kero more than once or twice a year and same importer brings in PMS and AGO 3 times a week.

And at every point Kero is discharged through our cargo line, it's a matter 2 hours or less, you just must see NNPC barge anchoring around the jetty waiting for the Kero vessel to disembark for it to batt and load same kero.

Kerosene known as DPK is same product treated as ATK and used for all aircraft and airplanes to move.

Kerosene has more value than PMS and it is responsible for high cost of aviation tickets in Nigeria today. There is high demand for Kero because many importers dont bring in Kero due to high cost of maintenance on it's storage.

STORAGE AND MAINTENANCE
As an importer, everytime you bring in Kero, you start preparing to receive it like a week before it arrives which is unlike bringing in other white products.

There is a process of evacuation which involves opening of man holes on both sides, providing kits for maintenance team to go into the tanks that has concealed over 10 million PMS for over 6 years with PMS still in there..

We used to dress fully kitted with oxygen gas bottles on our back, with high pressure jets capable of throwing 5 adults off their feet.

God forbid you miss your step and your gas cylinder or mask goes of, before you crawl your way back to the Manhole, you might have give up the ghost.

So, on average, importers spend about 6 Million for storage of DPK. And the process takes a whole week which is not so in PMS and AGO

We dedicate tanks for various products. But not in a case of DPK that you bring in just once in 4 years. In that case, whenever you are bringing in DPK, you must do thorough evacuation which would even make you lose about 8000 litres of the initial product, make you contract evacuation and proper venting of the tank, and wait for DPR to come and confirm and sign that the tank is safe for storage.


Thank you for this information
Re: Why Is Kerosene More Expensive Than Petrol ? by lonelygem(m): 11:35am On Aug 06, 2022
Aflix:
Thanks for this explanation but there’s something I want to understand. Does the tank for storage of Kerosene have to have been used for storing PMS for 6 years If yes, please why is that
And if importers import just once or twice a year, how do airline operators manage?

There are many importers and they brings in at various stages according to what their financial capability can sustain.


A, B, C might bring DPK to their respective Lagos tank farms today, and D might bring his own to his Warri tank farm. This is why loading prices at depot level is not the same and sometimes a particular product might be available in Apapa but not available or ridiculously expensive in other places.

Marketing department of Depot operators hold meetings by 8am and do something called price scan before releasing their loading prices on daily basis.

On issue of storage, many depot dont have adequate storage capacity enough to leave a particular tank idle for so long. They mostly result to delaying the importing vessel at the jetty while they do back to back loading of fuel tankers, even go as far as loading all through the night in other to create space to accommodate the new stock.

Many times, the tanks are overwhelmed.
Re: Why Is Kerosene More Expensive Than Petrol ? by Thazard(m): 1:05pm On Aug 06, 2022
lonelygem:


God bless you. I'm surprised Nigerians dont research. Ive tried to educate people on several valuable use of Kero beyond domestic cooking, back then when I was at the Depot, even Government value Kero more than anything. A typical importer might not be able to import kero more than once or twice a year and same importer brings in PMS and AGO 3 times a week.

And at every point Kero is discharged through our cargo line, it's a matter 2 hours or less, you just must see NNPC barge anchoring around the jetty waiting for the Kero vessel to disembark for it to batt and load same kero.

Kerosene known as DPK is same product treated as ATK and used for all aircraft and airplanes to move.

Kerosene has more value than PMS and it is responsible for high cost of aviation tickets in Nigeria today. There is high demand for Kero because many importers dont bring in Kero due to high cost of maintenance on it's storage.

STORAGE AND MAINTENANCE
As an importer, everytime you bring in Kero, you start preparing to receive it like a week before it arrives which is unlike bringing in other white products.

There is a process of evacuation which involves opening of man holes on both sides, providing kits for maintenance team to go into the tanks that has concealed over 10 million PMS for over 6 years with PMS still in there..

We used to dress fully kitted with oxygen gas bottles on our back, with high pressure jets capable of throwing 5 adults off their feet.

God forbid you miss your step and your gas cylinder or mask goes of, before you crawl your way back to the Manhole, you might have give up the ghost.

So, on average, importers spend about 6 Million for storage of DPK. And the process takes a whole week which is not so in PMS and AGO

We dedicate tanks for various products. But not in a case of DPK that you bring in just once in 4 years. In that case, whenever you are bringing in DPK, you must do thorough evacuation which would even make you lose about 8000 litres of the initial product, make you contract evacuation and proper venting of the tank, and wait for DPR to come and confirm and sign that the tank is safe for storage.



Woe
Re: Why Is Kerosene More Expensive Than Petrol ? by bazooka4jesus: 3:38pm On Aug 06, 2022
lonelygem:


God bless you. I'm surprised Nigerians dont research. Ive tried to educate people on several valuable use of Kero beyond domestic cooking, back then when I was at the Depot, even Government value Kero more than anything. A typical importer might not be able to import kero more than once or twice a year and same importer brings in PMS and AGO 3 times a week.

And at every point Kero is discharged through our cargo line, it's a matter 2 hours or less, you just must see NNPC barge anchoring around the jetty waiting for the Kero vessel to disembark for it to batt and load same kero.

Kerosene known as DPK is same product treated as ATK and used for all aircraft and airplanes to move.

Kerosene has more value than PMS and it is responsible for high cost of aviation tickets in Nigeria today. There is high demand for Kero because many importers dont bring in Kero due to high cost of maintenance on it's storage.

STORAGE AND MAINTENANCE
As an importer, everytime you bring in Kero, you start preparing to receive it like a week before it arrives which is unlike bringing in other white products.

There is a process of evacuation which involves opening of man holes on both sides, providing kits for maintenance team to go into the tanks that has concealed over 10 million PMS for over 6 years with PMS still in there..

We used to dress fully kitted with oxygen gas bottles on our back, with high pressure jets capable of throwing 5 adults off their feet.

God forbid you miss your step and your gas cylinder or mask goes of, before you crawl your way back to the Manhole, you might have give up the ghost.

So, on average, importers spend about 6 Million for storage of DPK. And the process takes a whole week which is not so in PMS and AGO

We dedicate tanks for various products. But not in a case of DPK that you bring in just once in 4 years. In that case, whenever you are bringing in DPK, you must do thorough evacuation which would even make you lose about 8000 litres of the initial product, make you contract evacuation and proper venting of the tank, and wait for DPR to come and confirm and sign that the tank is safe for storage.



How can I contact you
Re: Why Is Kerosene More Expensive Than Petrol ? by laudate: 7:27pm On Aug 06, 2022
Adiob200:
Hearing the news that kerosene is #800 per litre, and petrol is #200..and demand for petrol is higher than kerosene.. Why is it like that?
There is no subsidy on kerosene.
It is priced like diesel. Both products are not subsidised, but sold at the open market commercial rate.
Re: Why Is Kerosene More Expensive Than Petrol ? by COMPAQ(m): 7:06pm On Aug 07, 2022
Nicepoker:
certainly. The only solution is to put all the refineries into full capacity else.......

That still does very little for the price of petrol. People assume if our refineries are working petrol will be cheap. In St there a cost to crude oil? Or are you expecting crude oil to be delivered to refineries for free? Don't you know there is an opportunity cost of doing that. The only thing that will be saved is cost of shipping. Depending on how efficient the refinery is, refining cost may even be more here.
Re: Why Is Kerosene More Expensive Than Petrol ? by COMPAQ(m): 7:12pm On Aug 07, 2022
Blackestjunior:


Thanks for elaborating ...not all this one's shouting no subsidy

Gosh!!
Re: Why Is Kerosene More Expensive Than Petrol ? by Nicepoker(m): 9:00pm On Aug 08, 2022
COMPAQ:


That still does very little for the price of petrol. People assume if our refineries are working petrol will be cheap. In St there a cost to crude oil? Or are you expecting crude oil to be delivered to refineries for free? Don't you know there is an opportunity cost of doing that. The only thing that will be saved is cost of shipping. Depending on how efficient the refinery is, refining cost may even be more here.
that very little they keep topping is what is killing the citizens.
Re: Why Is Kerosene More Expensive Than Petrol ? by xcesspaschal(m): 7:53pm On Aug 09, 2022
donsheddy1:
Go school you say no.

Hahahaha

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