The Petroleum Products Retail Outlet Owners Association of Nigeria has accused some local refineries of importing substandard crude oil to cut costs.
Speaking on Thursday, PETROAN’s National Publicity Secretary, Joseph Obele, alleged that these refineries are bringing in crude with high sulphur content, which poses serious environmental and health risks, according to The Punch.
When asked to name the refineries involved, Obele declined, stating that the refineries in question “know themselves” and expressed hope that they would take corrective action.
He noted that the importation of low-quality, high-sulphur crude began after the Federal Government suspended the naira-for-crude oil swap arrangement.
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 urged refinery operators to prioritise the importation of high-quality crude oil, especially as the naira-for-crude swap arrangement comes to an end.
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 stated.
He noted that Nigerian Sweet Crude ranks among the finest in the world and emphasized that imported crude should meet or exceed that level of 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 urged the Federal Government and regulatory agencies to remain vigilant and carry out thorough laboratory tests on all crude oil imports to ensure they comply with established quality 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 appealed to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to review the first phase of the naira-for-crude initiative and determine the next steps that would best serve the interest of Nigerians.
In addition, 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 added.
