PETROAN Warns Oil Marketers Against Importation Of Substandard Petroleum Products
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to review the first phase of the naira-for-crude oil initiative.
In a statement made on Thursday, the Public Relations Officer of PETROAN, Joseph Obele, highlighted that the assessment of the half-year program would outline the suitable actions moving forward that align with the interests of Nigerians.
Nigeria commenced the sale of crude oil and processed petroleum products in naira to domestic refineries on October 1, 2024.
Six months later, the Nigerian National Petroleum Company (NNPC) Limited revealed that negotiations for a new naira-for-crude deal were ongoing, as the current agreement expired at the end of March.
However, on March 19, Dangote Petroleum Refinery announced a temporary halt in the sale of petroleum products in naira.
Obele noted that as the naira-for-crude phase concludes today, the association is urging refinery operators to focus on importing high-quality crude oil.
“We urge the refinery operators to ensure that the crude oil imported meets global standards to guarantee the production of high-quality petroleum products,” he said.
“It is noteworthy that Nigerian crude oil, classified as Sweet Crude (with less than 0.5 percent 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.
“Furthermore, the media’s speculation that the price of petroleum products might increase as the naira-for-crude deal ends is a serious concern to PETROAN.
“To avoid this situation and ensure price stability and energy sufficiency, PETROAN advocates that the window for importing refined petroleum products should remain open.
“We call on regulatory agencies to stay vigilant and perform thorough laboratory tests on all crude oil imports to ensure they meet the required standards.
“We also urge the relevant authorities to ensure refinery operators comply with the highest standards in their operations, including the importation of quality crude oil.”
Obele expressed confidence that the recent increase in petrol prices is temporary, citing the federal government’s reforms under the Petroleum Industry Act (PIA), which promote competition in the downstream sector.
“We believe that as the market adjusts to the new realities, prices will stabilize and eventually decrease,” he said.
“To further protect the interests of our members and Nigerian consumers, PETROAN will remain vigilant and proactive.”
Obele concluded by assuring that the association would conduct laboratory tests on refined petroleum products to ensure its members and the public are not sold substandard goods.
PETROAN Warns Oil Marketers Against Importation Of Substandard Petroleum Products is first published on The Whistler Newspaper
