PETROAN Accuses Oil-producing Companies of Diverting 500,000bpd Crude Meant for Local Refineries
- Petrol marketers have made a strong accusation to the Nigerian oil-producing companies about the diversion of 500,000bpd of crude oil
- According to PETROAN, the crude oil meant for local refineries still ends up in the international market as exports
- Meanwhile, local refineries like Dangote Petroleum Refinery have resorted to importing crude oil to make up for shortfalls in their crude needs
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Nigerian petrol marketers have accused the oil-producing companies of diverting the 500,000bpd meant for local petroleum refineries.
According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), this diversion significantly reduces the quantity of crude oil available for local refining.
PETROAN Publicity Secretary Joseph Obele thus commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for stopping illegal activities and protecting the crude oil allocated to local refineries.
Source: Getty Images
He alleged;
“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.”
The PETROAN public secretary noted that with NUPRC banning the export of crude allocated for local refining, Nigerians will see an increase in domestic refining activities, according to the SUN report.
NUPRC set to ban crude exports
Recall that the Nigerian government, through the NUPRC, recently warned international oil firms against diverting crude oil meant for local consumption.
The agency warned that if the oil companies fail to prioritise the local market, they could lose their oil exploration, production, and export permits.
The NUPRC chief executive, Gbenga Komolafe, said the refiners and oil producers are trading blame over the situation where local refineries have to turn to crude imports to meet their supply needs.
Dangote Refinery imports crude
Recall that Dangote Refinery revealed plans to increase production capacity by another 30% from 500,000bpd to 650,000bpd before June 2025.
Since the crude allocated for local refineries cannot meet its crude demands, the refinery announced plans to import crude oil.
Eight new tanks with a storage capacity of about 1 billion litres were constructed at the beginning of the year to hold the crude imports.
This move also became necessary due to challenges with the reliability of the local supplies, which were already insufficient to meet its needs.
Citizens group asks NNPC to prioritise local refineries
In related news, a Nigerian citizens group recently urged the Nigerian National Petroleum Corporation (NNPC) to prioritise crude supply to local refineries before foreign partners.
The group highlighted growing concerns over the reduction in allocations and accused NNPCL of attempting to marginalize private sector players like the Dangote Refinery.
The concerned citizens also called on President Bola Tinubu to intervene in the matter and help the local refineries grow.
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Source: Legit.ng
