The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised concerns that some local refineries are importing substandard crude oil into Nigeria in a bid to cut costs.
Speaking on Thursday, PETROAN’s National Publicity Secretary, Joseph Obele, revealed that these refineries have been bringing in crude with high sulphur content, which does not meet global standards.
Substandard Crude Linked to End of Naira-for-Crude Deal
Obele stated that the importation of low-quality crude began following the Federal Government’s suspension of the naira-for-crude deal.
“Some refineries are importing substandard crude to cut costs since the naira-for-crude deal was stopped. We won’t name any specific refinery, but they know themselves and should make corrections,” he said.
He stressed that many Nigerians may not be aware of the issue, adding that any crude with high sulphur content is below international standards.
PETROAN Calls for Strict Quality Control
In an earlier statement, PETROAN urged refinery operators to import only high-quality crude oil to maintain the production of standard petroleum products.
“Nigerian crude oil, known as sweet crude, has less than 0.5% sulphur content and is among the best in the world. There is no reason why imported crude should be of lower quality,” Obele stated.
He warned that importing substandard crude could:
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Compromise the quality of petroleum products
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Hinder the growth of the Nigerian oil and gas industry
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Harm Nigerian consumers
PETROAN called on the Federal Government and regulatory agencies to be vigilant by conducting thorough laboratory tests on all imported crude to ensure compliance with global standards.
“We urge authorities to ensure that refinery operators adhere to the highest standards, especially in crude oil importation,” he added.
Concerns Over Rising Fuel Prices
PETROAN also urged the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to review the first phase of the naira-for-crude initiative to determine the best course of action for Nigerians.
The association expressed concerns that fuel prices may continue rising as the naira-for-crude deal ends.
“To prevent this and ensure price stability, the importation of refined petroleum products should remain open,” PETROAN advised.
Optimism for Market Stability
Despite recent fuel price hikes, PETROAN remains optimistic that the increase is temporary.
“The Petroleum Industry Act promotes competition, which naturally drives prices down. As the market adjusts, we believe fuel prices will eventually stabilize and decrease,” Obele stated.
To protect consumers, PETROAN will conduct independent tests on refined petroleum products to determine which refineries and depots meet quality standards.
“We will mobilize our members to buy only from sources that sell high-quality products, ensuring that Nigerians are not exposed to substandard fuel,” Obele warned.
However, he declined to name the refineries allegedly involved in importing substandard crude.
