WHAT IS KEROSENE?
Kerosene is a combustible oil with low viscosity used by businesses and homes as fuel to generate heat, light and power. Kerosene is a flammable liquid mixture of chemicals that are produced in the distillation of crude oil. It is typically pale yellow or colourless and has a not-unpleasant characteristic odour. To produce kerosene, crude oil is distilled in a distillation tower in a process similar to that used to produce diesel and gasoline.
Kerosene is a common household oil in Nigeria, used for different purposes. It is used for burning in kerosene lamps and domestic heaters or furnaces, as a fuel or fuel component for jet engines, and as a solvent for greases and insecticides.
Kerosene has many names, although these all refer to the same fuel; these names include kerosine, paraffin, heating oil, 28 second, kero, lamp oil, burning oil and boiler fuel.
KEROSENE TRADE PROCESS
- CIF: The seller handles everything from loading the vessel, paying for insurance and shipping the product to the country the buyer wants it delivered.
- FOB: The seller is responsible for handling the transportation of the goods to the port of shipment and loading cost. Once the goods are loaded on the ship, all liabilities transfer to the buyer.
- Tanker Take Over (TTO): The buyer takes over the hiring of a loaded tanker along with the product it contains.
- Tanker To Tanker (TTT): The buyer hires his vessel and uses the same to purchase products from the seller.