PETROAN Alleges Local Refineries Import Substandard Crude to Cut Costs

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The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised concerns that some local refineries are importing substandard crude oil into Nigeria to reduce expenses. According to PETROAN National Publicity Secretary Joseph Obele, the refineries are importing crude oil with high sulphur content, which falls short of global standards.

“Some refineries are importing substandard crude into the country. They do this to cut costs following the stoppage of the naira-for-crude deal,” Obele said in an interview. “We are not going to mention any particular refinery, but when those concerned see the report, they will make corrections.”

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Obele explained that the importation of low-quality crude oil began after the Federal Government suspended the naira-for-crude deal. He emphasised that Nigerian Sweet Crude is among the best in the world, with less than 0.5% sulphur content, and imported crude should meet the same standards.

“It is noteworthy that Nigerian crude oil… is among the best in the world, and we see no reason why imported crude oil should be of lower standards,” Obele noted. “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 has called on the Federal Government and regulatory agencies to conduct thorough laboratory analysis on all crude oil imports to ensure they meet required standards. Obele also urged the relevant authorities to ensure refinery operators adhere to the highest standards in their operations.

“We also urge the relevant authorities to ensure that refinery operators adhere to the highest standards in their operations, including the importation of high-quality crude oil,” he said.

Furthermore, PETROAN has 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. The association expressed concerns that the price of petroleum products may increase as the naira-for-crude deal comes to an end.

“In order to avoid this scenario and ensure price stability and energy sufficiency, PETROAN advocates that the window for importation of refined petroleum products should remain open,” Obele said.

PETROAN has assured its members and the Nigerian public that it will conduct laboratory testing on refined petroleum products to determine which refinery or depot to purchase from, ensuring that substandard products are not sold.

“To further protect the interests of our members and the Nigerian consumers, PETROAN will be vigilant and proactive,” Obele threatened

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