The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has accused oil producers of diverting 500,000 barrels of crude oil daily, originally meant for local refineries.
The group expressed concern that many local refineries have been abandoned due to oil producers’ failure to meet domestic crude supply obligations. PETROAN made this claim while reacting to the Nigerian Upstream Petroleum Regulatory Commission’s decision to ban the export of crude oil allocated to local refineries.
The association noted that the ban is expected to positively impact the economy by boosting local refining, enriching the petrochemical and agricultural sectors, and reducing income inequalities. PETROAN also stated that refining crude oil domestically would help Nigeria transition from a raw material exporter to a value-added product supplier, decrease refined petroleum imports, and ease pressure on foreign exchange reserves.
“The exportation of crude oil meant for domestic refining has led to the abandonment of local refineries. It has been a major racketeering scheme, with producers and traders prioritising quick foreign exchange proceeds over local refining,” a statement by its Publicity Secretary, Joseph Obele, read.
“Approximately, 500,000 barrels of crude oil per day are allocated for domestic refining, but these volumes often find their way to the international market”.
PETROAN’s National President, Billy Gillis-Harry, called on the NUPRC to take prompt action against refineries, cargo vessels, and companies that violate the policy.
He emphasized that enforcing the policy would ensure an adequate supply of refined petroleum products in Nigeria, resulting in lower prices and improved conditions for consumers.
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