Amid Fuel Price Hike, Nigeria's Domestic Refineries Receive 3.6mb of Crude From NUPRC

• NURPC said three local refineries received 3.61 million barrels of crude oil between September 2021 and May 2023
• Only refineries that adhere to the pertinent provisions of Section 109 of the Petroleum Industry Act of 2021 can receive crude
• Walter Smith, NDPR, and OPAC refineries received supplies following the PIA

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that between September 2021 and May 2023, three local refineries received 3.61 million barrels of crude oil.

According to a statement released in Abuja by NUPRC, it delivered 3.61 million barrels of crude to three local refineries between September 2021 and May 2023, in contrast to claims made by some operators in the Nigerian refinery industry that doing so would destroy members' investments and stifle the sector's growth.

Legit.ng earlier reported that Aliko Dangote, Chairman of the Dangote Group, said during the commissioning of his refinery by ex-President Muhammadu Buhari on May 22, 2023, that the 560,000-barrel capacity refinery will begin production in July or early August.

Read also

“Not more than 2.5%”: CBN releases new rules for 5,691 BDC operators when buying, selling dollars to customers

Meanwhile, there has yet to be a word from the refinery management about when the refinery will begin production.

Only abiding refineries can recieve crude oil

According to the declaration, refineries can only receive crude oil if they adhere to the pertinent provisions of Section 109 of the Petroleum Industry Act of 2021. Before the PIA went into effect in August 2021, 1,726,049 barrels of oil were supplied to two refineries that complied with the regulations in place at the time, The Nation reported.

The two refineries are run by Walter Smith and NDPR, the commission claims. It mentioned that Walter Smith, NDPR, and OPAC refineries received supplies following the PIA.

It claimed that the Commission recently gave Millennium Oil and Gas Limited permission to supply the OPAC and Duport refineries in Edo State with 60,000 barrels of crude oil by trucking them at a rate of 20,000 barrels per month for three months.

Read also

Nigeria lost $46 billion worth of crude oil to theft as NNPC report 114 cases in one week

Alternative evacuation now authorised

The NUPRC also stated that alternative evacuation methods, such as trucking crude oil to refineries, have been authorised in order to prevent refinery operations from being interrupted in the event that pipelines are unavailable or are vandalised.

It was made very clear that the Commission will continue to be consistent in carrying out the PIA's mandate and will make sure that all licenced refineries operating in the nation have a favourable and suitable supply of feedstock.

The commission added that any refinery owner or group of owners in Nigeria who does not get or denies obtaining feedstock from the proper agencies has not yet complied with the legal requirements.

Aradel Holdings' Modular Refinery prepares to refine petrol in 12 months' time

Adegbite Falade, the managing director and chief executive officer of Aradel Holdings, announced that the company would begin to refine premium motor spirit within a year during its rebranding and 30th anniversary, according to Legit.ng earlier report.

Read also

Fuel scarcity looms as marketers stall importation over forex shortage

Falade said the action is consistent with the company's commitment to the diversification of the Nigerian economy and the development of local content.

This is after Aliko Dangote finally opened Africa's largest refinery, which can refine 650,000 barrels of crude oil daily. Read more on the 19 major facts about Dangote Refinery you should know.

Source: Legit.ng