The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has alleged that oil producers are diverting the daily 500,000 barrels of crude oil meant for local refineries.
The association, in a statement by its publicity secretary, Joseph Obele, alleged racketeering, saying oil producers prioritised quick dollar earnings over the government’s efforts to boost local refining capacity.
“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.
“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,” PETROAN stated.
According to PETROAN, the ban is expected to have a positive impact on the economy, as refining crude oil locally will enrich the petrochemical industries and agricultural sector, reduce inequalities in income, and enable Nigeria to transition from a raw material supplier to a value-added product supplier.
It commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for banning the export of crude oil allocated to local refineries.
PETROAN said the move is expected to boost local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.
It lamented that many refineries have been abandoned due to the failure of oil producers to obey the domestic crude supply obligation.
PETROAN National President, Billy Gillis-Harry, urged the NUPRC to take swift action against refineries, cargo vessels, and companies that default on this policy.
He noted that the policy will guarantee sufficient refined petroleum products in the country, leading to price reductions and better days ahead for Nigerian consumers.
