Energy Firm Accuses International Oil Companies of Patronizing Illegal Refinery for Diesel
- According to Tantita Security Services Nigeria Limited, oil companies buy refined diesel from unregistered refineries
- It claimed that several downstream operators are among the many clientele of illegal refineries, which manufacture enormous amounts of fuel
- Enisuoh explained that there might be a need to prioritise the local communities more when it comes to infrastructure
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Tantita Security Services Nigeria Limited has alleged that oil firms purchase refined automotive gas oil, often known as diesel, from unlicensed refineries located in several host communities around the Niger Delta region.
Source: Getty Images
It made this announcement during the ongoing Nigeria Oil and Gas Energy Week Conference in Abuja, which was attended by both domestic and foreign oil and gas firms.
The Punch reported that the oil companies in attendance at the occasion did not dispute this.
Illegal refineries produces largest diesel
The Executive Director, Operations and Technical, Tantita Security Services, Capt. Warredi Enisuoh, said that illegal refineries produce large amounts of diesel and that many downstream operators are among their clients.
He stated that the groups receive funding not only from smugglers but also from oil firms, emphasizing that the spike in diesel prices was caused by Tantita and other security services' raid on these facilities.
“Why is there no scarcity of diesel while there is scarcity of PMS (popularly called petrol)? The story is simple, most of the diesel you buy is produced by the communities.
“About 90 per cent of the diesel in the fuel stations is produced by the communities. It will also interest you to know that even the oil companies patronise the local communities. Don’t let anybody deceive you, they (oil companies) also patronise the local communities,” he declared.
Enisuoh clarified that in terms of infrastructure, there might be need to focus more on the local communities in order to supply Nigerian content solutions to meet energy demand.
He said that the illegal manufacture of diesel would keep rising if it weren't for the actions of security organizations like Tantita Securities.
He stated,
“The reason why the price of diesel is high today is because of the works of private security companies like my company Tantita Security Services.
“This is because we have been able to somehow cut down on a lot of the businesses of the illegal refineries. This is why you see the cost of diesel going up.”
Agency earlier seized a tugboat
The PUNCH said on April 10, 2024, that the NNPC announced that Tantita Security Services Limited agents had seized a tugboat suspected of transporting illegally refined diesel.
Before the security team arrested the tugboat in Rivers State, NNPCL had reported that it was being escorted by a marine police boat. It also added that Tantita was now questioning five of the people on the boat.
NNPC had stated,
“On Monday, April 1, 2024, the Tantita Security Services team on patrol pursued and arrested a tugboat – Aya Oba Olori II, which was being escorted by a marine police boat in Rivers State.
“The tugboat was laden with an unspecified quantity of suspected illegally refined AGO which was loaded from a barge at Onne dock on March 31. Five persons onboard the tugboat were arrested by Tantita team and are undergoing interrogation.”
Diesel sells for new amount across Nigeria
Legit.ng reported that the National Bureau of Statistics (NBS) data showed that in May 2024, consumers spent an average of N1403.96 per litre on automotive gas oil (diesel).
This is a 66.29% rise in price over the same month the previous year, from a lower cost of N844.28 per litre in May 2023.
From N1415.06 in the previous month of April 2024 to an average of N1403.96 in May 2024, this indicated a monthly decline of 0.78%.
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Source: Legit.ng
