The Petroleum Products Retail Outlet Owners Association of Nigeria has expressed concern over what it describes as the influx of substandard crude oil into the country, allegedly by some local refineries looking to reduce operational costs.
Speaking exclusively to The PUNCH on Thursday, the association’s National Publicity Secretary, Joseph Obele, disclosed that certain refineries were importing crude oil with high sulphur content, which does not conform to international quality benchmarks.
“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,” Obele said.
While he declined to name specific refineries involved, Obele expressed optimism that the operators in question would recognize themselves and take corrective action.
“Many may not know there is substandard crude. Any crude oil with high sulphur content does not meet the global standard,” he added.
In an earlier statement, PETROAN warned refinery operators against the use of low-grade crude, especially in light of the conclusion of the naira-for-crude exchange program.
The association emphasized the importance of maintaining high standards to ensure the production of top-quality petroleum products.
“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 noted.
He went on to highlight the superior quality of Nigeria’s own crude oil, stating: “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.”
According to him, importing low-quality crude poses serious risks to the integrity of the oil and gas sector, as well as to consumers.
“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.
Obele urged the Federal Government and regulatory agencies to be vigilant and implement strict monitoring of crude oil imports through laboratory testing.
“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.
Additionally, PETROAN called on the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to evaluate the initial phase of the naira-for-crude initiative to determine the best path forward.
Obele further expressed concern over the possibility of continued fuel price hikes as a result of the policy’s suspension.
“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,” he said.
Despite recent fuel price increases, the association remains hopeful that the changes are temporary and that the reforms introduced by the Petroleum Industry Act will foster a competitive environment leading to lower prices.
“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,” Obele said.
To safeguard its members and Nigerian consumers, Obele concluded that PETROAN would intensify quality control efforts by testing refined products and directing its members to patronize only those depots and refineries that meet required standards.
“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,” he stated.
