The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has accused oil producers of diverting 500,000 barrels of crude oil daily.
The crude oil alleged to have been diverted is said to be meant for local refineries.
This is even as the group lamented that quite a number of local refineries have been abandoned due to the failure of oil producers to obey the domestic crude supply obligation.
The PETROAN made this allegation while commenting on the decision of the Nigerian Upstream Petroleum Regulatory Commission to ban the export of crude oil allocated to local refineries.
It was noted that the development on the ban of exportation of crude oil allocated to local refineries are expected to have a positive impact on the economy.
According to the statement, refining crude oil locally will enrich the petrochemical industries and agricultural sector.
It is also expected to “reduce inequalities in income, and enable Nigeria to transition from a raw material supplier to a value-added product supplier” per the PETROAN position.
PETROAN said the move would boost local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.
“The exportation of crude oil meant for domestic refining has led to the abandonment of local refineries. It has been a major racketeering scheme, with producers and traders prioritising quick foreign exchange proceeds over local refining,” a statement by its Publicity Secretary, Joseph Obele, read.
“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”.
While commenting, the PETROAN’s National President, Billy Gillis-Harry, urged the NUPRC to take swift action against refineries, cargo vessels, and companies that default on this policy.
Harry believes that the policy will guarantee sufficient refined petroleum products in the country, leading to price reductions and better days ahead for Nigerian consumers.
Earlier, the NUPRC in a circular warned exporters from tampering with cargoes meant for local refineries
In a letter addressed to exploration and production companies and their equity partners, the Commission Chief Executive, Gbenga Komolafe, warned that diverting crude oil meant for local refineries is a clear violation of the country’s law.
“Kindly note that the diversion of crude cargo designated for domestic refineries is a violation of the law, and the Commission will henceforth disallow export permits for such cargoes.”
“All cargoes designated for domestic refining can only be altered with the express approval of the Commission Chief Executive. The above is for your strict compliance,” the letter read.
