Local refineries importing substandard crude, PETROAN alleges

The Petroleum Products Retail Outlet Owners Association of Nigeria says some local refineries are importing substandard crude into Nigeria to cut costs.

Speaking with our correspondent on Thursday, PETROAN National Publicity Secretary Joseph Obele said the refineries have been importing crude oil with high sulphur content into Nigeria.

Asked to mention some of the refineries, Obele declined, saying the concerned refineries know themselves, hoping they will adjust.

According to him, the importation of low-quality crude oil into Nigeria started following the suspension of the naira-for-crude deal by the Federal Government.

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

“Many may not know there is substandard crude. Any crude oil with high sulphur content does not meet the global standard.”

Earlier in a statement, PETROAN cautioned refinery operators to prioritise the importation of high-quality crude oil as the naira-for-crude tenure ends.

“We urge the refinery operators to ensure that the crude oil imported meets global standards to guarantee the production of high-quality petroleum products,” Obele noted.

He explained that Nigerian Sweet Crude is among the best in the world, saying imported crude should not be lower in quality.

“It is noteworthy that Nigerian crude oil, classified as sweet crude (with less than 0.5 per cent sulphur content), is among the best in the world, and we see no reason why imported crude oil should be of lower standards.

“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,” he argued.

He called on the Federal Government and the regulatory agencies to be on high alert and “conduct thorough laboratory analysis on all crude oil imports to ensure they meet the required standards.

“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.

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.

Furthermore, he stressed that the permutation that the price of petroleum products will keep increasing as the naira-for-crude deal comes to an end is a serious concern to PETROAN.

“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.

“Meanwhile, PETROAN is optimistic that the recent increment in the price of PMS is temporary. The reforms occasioned by the Petroleum Industry Act encourage competition in the downstream sector. Competition is a catalyst for price reduction in any sector. We believe that as the market adjusts to the new realities, prices will stabilise and eventually decrease.

“To further protect the interests of our members and the Nigerian consumers, PETROAN will be vigilant and proactive. We will conduct laboratory testing on refined petroleum products to determine which refinery or depot to mobilise our members to purchase from. This is to ensure that our members and the Nigerian public are not sold substandard products,” Obele threatened, even as he refused to mention the refineries importing substandard crude.