Business Nigeria halts gasoline imports as buy scheme creates glut - Reuters

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LONDON/LAGOS, Oct 17 (Reuters) - The trading arm of Nigeria's state oil company has suspended gasoline imports, market sources in the region said, after over-buying in the wake of a fuel subsidy scandal last year.

Gasoline gluts have occurred in the past off Nigeria, but the scale is far worse than usual and a suspension of import deals is very rare. Traders say it is possible the suspension may extend until the end of the year - which will hit European refiners that supply the market.

The Pipelines and Product Marketing Co (PPMC) has cancelled cargoes and told traders it will make no gasoline purchases in November, as it tries to work through a 10.2 million barrel (1.2 million tonnes) surplus of the motor fuel waiting offshore.

"All previously agreed laycans (deliveries) have been cancelled," one regional trading source said, "Nigeria has about 1.2 million tonnes offshore waiting to discharge."

PPMC spokesman Nasir Imodagbe said by telephone he was not aware of any cancellation of orders, but that a decision to suspend imports that would be that of the regulator, the Petroleum Product Pricing Regulatory Agency (PPPRA).

Reuters
http://www.reuters.com/article/2013/10/17/nigeria-gasoline-idUSL6N0I53CS20131017

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