Kerosene is a flammable liquid mixture of chemicals that are produced in the distillation of crude oil. Kerosene 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.

It 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. There are two types of kerosene and they are separated into type 1-K and type 2-K categories. These types are based mainly on the difference in their sulfur content.

• Cost Insurance and Freight (CIF): The seller handles everything from loading the vessel, paying for insurance and shipping the product to the country the buyer wants it delivered.
• Freight On Board (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. Liabilities like unloading, insurance, marine freight transport and transporting products to its destination.
• 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.