FG Cuts fuel Sulphur Cap, Still Above Target
By Udeme Clement and Agency News
Fact emerged that the Federal Government will cut the level of sulphur allowed in imported fuel this year, but the cap is still 10 times above what health campaigners want, according to oil trade sources.
As such, in oil-for-product exchange contracts, Nigerian National Petroleum Corporation, NNPC, has asked for diesel and gasoline at a maximum of 500 parts per million, ppm, sulphur, the trade sources revealed.
More so, NNPC in 2018, outlined a plan to gradually cut the allowed sulphur to 50 ppm for diesel and 150 ppm for gasoline by the end of 2019, from 3,000 ppm and 1,500 ppm.
Therefore, some 40 companies have been shortlisted for the contracts, Dubbed Direct Sale, Direct Purchase, DSDP, and had until the end of yesterday, to submit their pricing to supply the fuels, according to the trade sources .
The contracts are expected to begin in late August or September.
NNPC did not respond to a request for comment.
Nigeria relies almost entirely on imported fuels due to limited and poorly maintained refineries. The country also caps prices for gasoline, which means the government would pay directly if it mandates higher-quality fuel.