EXPLANATORY NOTE

  • Freight: The average clean tanker freight rate. It is the average cost of transporting (30kt) cargo from North West Europe (NWE) to West Africa (WAF):
    (DPFM/100)*AWS); DPFM= Daily Platts Freight Movement; AWS= Annual World-Scale.
  • ¬†Product Cost ($/MT): The cost of one metric tonne of petroleum product in US Dollars as quoted on Platts¬† (S&P Global Platts). The reference spot market is FOB Rotterdam Barge.
  • Exchange Rate (N/$): Exchange Rate of Nigerian Naira to US Dollar.
  • Lightering Expenses: Ship-to-Ship (STS)/Local Freight Charge is the cost incurred on the transshipment of imported petroleum products from the mother vessel into daughter vessel to allow for the onward movement of the vessel into the Jetty.
  • NPA: This is cargo dues (harbor handling charge) charged by the Nigeria Ports Authority for use of Port facilities. The charge includes VAT and Agency expenses.
  • NIMASA Charge: Nigerian Maritime Administration and Safety Agency, Marine Pollution Prevention & Control, and Cabotage enforcement.
  • Jetty Depot Thruput: This is the tariff paid for the use of facilities at the Jetty by Marketers, to move products from the jetties to storage depots.
  • Depot Charge: Storage Margin is for depot operations covering storage charges and other services rendered by the depot owners.
  • Financing: It refers to stock finance (cost of fund) for the imported product. It includes cargo financing, based on 25% of Landing Cost.
  • Other Charges:
    – Bridging Fund: Contribution to/reimbursement from the fund to defray the cost of transportation of petroleum products from one zone to another zone (Bridging) based on a Transportation Differential Zone map.
    – MTA: Marine Transport Allowance (Coastal) Bridging.
    – Admin Charge.
  • Distribution Margins: The overhead cost and other running costs have been considered in the determination of these margins.
    – Wholesale Margin: Allowable margin to importers of petroleum Products.
    – Transporters (National Transportation Allowance): Contribution to/reimbursement from the fund to defray the cost of local transportation of petroleum products within the same zone (Local Delivery) based on a Transportation Differential Zone map.
    – Dealers: Allowable margin to retailers of petroleum products.