Crude Oil Producers Diverting 500,000bpd Meant For Local Refineries — PETROAN
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised serious concerns about the diversion of 500,000 barrels per day (bpd) of crude oil, which was meant to supply local refineries. The allegation was made public on Wednesday amid ongoing challenges in Nigeria’s refining sector.
Joseph Obele, the publicity secretary for PETROAN, highlighted that the diversion of crude allocations has severely impacted the operations of local refineries, many of which are struggling to function due to inadequate feedstock. According to Obele, oil producers are prioritizing the pursuit of foreign exchange gains over meeting domestic supply obligations, exacerbating the issues faced by local refineries.
In response, PETROAN commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its recent decision to ban the export of crude oil intended for domestic refining. The association views this move as a critical step in strengthening local refining capabilities and reducing Nigeria’s reliance on imported petroleum products.
Obele stated, “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.”
The situation has ignited a heated debate among stakeholders in the oil and gas industry. Oil producers argue that local refineries often fail to meet commercial terms, while refiners counter that oil producers are neglecting their domestic supply commitments in favor of more lucrative international markets. This blame game has complicated efforts to stabilize local crude supply and improve refinery operations.
PETROAN’s national president, Billy Gillis-Harry, called for swift and effective enforcement of the export ban to ensure that local refineries receive their fair share of crude oil. He expressed hope that this policy would lead to a more self-sufficient refining sector in Nigeria, ultimately benefiting consumers through lower prices and better availability of petroleum products.
