There’s trouble brewing in the oil sector! The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) is alleging that some local refineries are importing substandard crude oil into the country in a bid to reduce expenses.
According to PETROAN National Publicity Secretary, Joseph Obele, who was interviewed on Thursday, these refineries are bringing in crude with dangerously high sulphur content.
Although Obele declined to name the specific refineries involved, he expressed hope that those concerned would take note of the report and make the necessary adjustments.
Obele explained that this alleged importation of low-quality crude began after the Federal Government suspended the naira-for-crude deal.
He stated that some refineries were importing substandard crude to cut costs following the stoppage of the naira-for-crude deal. He said that they were not going to mention any particular refinery, but when those concerned see the report, they will make corrections.
Obele cautioned refinery operators to prioritize importing high-quality crude oil now that the naira-for-crude arrangement has ended.
Obele emphasized that Nigerian Sweet Crude is among the best in the world and that imported crude should not be of lesser quality.
He said that the association is concerned that the importation of substandard crude oil will compromise the quality of petroleum products, undermine the growth and development of the Nigerian oil and gas industry, and ultimately harm Nigerian consumers.
PETROAN is urging the Federal Government and regulatory agencies to conduct thorough laboratory analyses on all crude oil imports to ensure they meet the required standards.
PETROAN also called on the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to conduct an appraisal of the first phase of the naira-for-crude initiative to ascertain the next line of action in the best interest of Nigerians.
Obele expressed concern that the price of petroleum products would continue to rise as the naira-for-crude deal comes to an end.
To avoid this scenario and ensure price stability and energy sufficiency, PETROAN advocates that the window for the importation of refined petroleum products should remain open.
Obele threatened that PETROAN would be vigilant and proactive, conducting laboratory testing on refined petroleum products to determine which refinery or depot to mobilize their members to purchase from. This is to ensure that their members and the Nigerian public are not sold substandard products.
