Petrol Marketers Raise Alarm Over Naira-for-crude Deal, Demand Probe
- As the naira-for-crude deal comes to an end, petrol retailers have asked the federal government to probe the details
- The marketers also called on the domestic refineries to desist from importing substandard crude oil into Nigeria
- Meanwhile, insiders have shown optimism that the naira-for-crude deal will resume soon as the negotiating parties are recording progress
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
With the pilot phase of the naira-for-crude ended, petrol retailers in Nigeria have asked the federal government to conduct a probe.
The marketers noted that it is necessary to appraise the pilot phase, which lasted six months, before entering a long-term agreement.
Source: Getty Images
Speaking under the umbrella of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), they called on the minister of state for petroleum, Heineken Lokpobiri, to conduct the probe in the best interest of Nigerians.
The naira-for-crude deal officially commenced on October 1, 2024, for an initial six-month period. The goal was to sell crude to the local refineries, including Dangote Refinery, using naira as the currency of transaction.
Renegotiations are ongoing to renew the deal, although there are speculations that the government may not continue to sell crude oil for naira.
Petrol marketers encourage refineries to buy high-quality crude
The PETROAN spokesperson, Joseph Obele, also noted in his statement that with the first phase of the naira-for-crude deal ended, domestic refineries must take great care to import only high-quality crude oil.
Obele pointed out that Nigerian crude oil is grouped among sweet crude and noted to be one of the best in the world, having less than 0.5% sulphur content, the SUN reports.
He urged the refineries to ensure to only import crude oil that falls within the same standard to ensure the quality of the refined petroleum products they sell to Nigerians.
Recall that PETROAN earlier accused the domestic refineries of importing substandard crude oil. The group noted that the development started after the suspension of the naira-for-crude deal.
The PETROAN spokesman noted that selling substandard petroleum products would ultimately harm the Nigerian consumers.
Obele urged regulatory agencies to conduct a thorough analysis of all crude oil imports to ensure that domestic refineries only get high-quality crude.
Petrol marketers want imports to continue
The petroleum retailers again stressed the need for the fuel importation window to be left open to ensure an adequate supply of all petroleum products.
Source: Getty Images
They noted that the importation would ensure steady competition and price stability, which is in the best interest of Nigerians.
Obele projected that fuel prices would come down soon, as the federal government reforms in the downstream sector engender a healthy competition.
Naira-for-crude deal set to resume
In related news, Legit.ng reported that the naira-for-crude deal is set to continue, according to inside sources familiar with the matter.
All the parties involved in the negotiations are scheduled to reconvene soon, and all indications are that the deal will resume.
Since the suspension of the naira-for-crude deal, Dangote Refinery has stopped selling its refined products in naira and has made dollars its currency of transaction.
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Proofreading by Nkem Ikeke, copy editor at Legit.ng.
Source: Legit.ng
