PETROAN Raises Concerns Over Substandard Crude Imports
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised concerns that some local refineries are importing substandard crude oil to reduce costs.
High Sulfur Content Issues
In a conversation with our correspondent on Thursday, PETROAN’s National Publicity Secretary, Joseph Obele, pointed out that these refineries have been bringing in crude oil with high sulfur content, which does not meet international standards. Moreover, this raises significant concerns about the quality of petroleum products produced in Nigeria.
Refineries Remain Unnamed
When asked to identify specific refineries involved, Obele cautiously refrained from naming them, stating that the refineries in question are aware of their practices and should take corrective actions. Furthermore, he noted that the importation of low-quality crude oil increased after the Federal Government suspended the naira-for-crude arrangement, which has impacted the industry significantly.
Cost-Cutting Practices
“Certain refineries are importing substandard crude into the country to minimize expenses following the end of the naira-for-crude deal. Although we’re not naming any particular refineries, those implicated should recognize the issue and make necessary adjustments,” said Obele. He emphasized that many people might not realize what constitutes substandard crude, explaining that any crude oil with high sulfur content fails to meet global standards.
Call for Quality Assurance
Earlier, PETROAN urged refinery operators to focus on importing high-quality crude oil as the naira-for-crude arrangement comes to a close. Obele further reiterated the need for refinery operators to ensure that their imports conform to global quality standards to produce superior petroleum products.
He pointed out that Nigerian Sweet Crude, characterized by less than 0.5 percent sulfur content, is among the best worldwide; hence, there’s no justification for accepting lower-quality imports. “The importation of substandard crude could jeopardize the quality of our petroleum products, hinder the growth of Nigeria’s oil and gas sector, and ultimately harm consumers,” he warned.
Government and Regulatory Oversight Needed
In addition to this, Obele called for the Federal Government and regulatory bodies to remain vigilant, conducting comprehensive laboratory analyses on all crude oil imports to verify compliance with required standards. He also urged relevant authorities to enforce strict adherence to high operational standards for refinery operators.
Minister of State for Petroleum Resources Involvement
Additionally, PETROAN appealed to the Minister of State for Petroleum Resources, Heineken Lokpobiri, to evaluate the initial phase of the naira-for-crude initiative to determine the next steps for the benefit of Nigerians. Consequently, Obele expressed concerns over the potential for rising petroleum product prices as the naira-for-crude deal ends.
Advocating for Price Stability
“To prevent this and ensure stability in pricing and energy sufficiency, PETROAN advocates for keeping importation channels for refined petroleum products open,” he stated. Nevertheless, he expressed optimism that the recent rise in the price of PMS (Premium Motor Spirit) is a temporary situation, suggesting that the competition spurred by the Petroleum Industry Act will lead to price reductions as the market adapts.
Proactive Measures by PETROAN
To safeguard the interests of its members and Nigerian consumers, PETROAN plans to be proactive. Thus, the association will conduct laboratory tests on refined petroleum products to identify which refineries or depots are preferred for purchase, ensuring that members and the public do not receive substandard products. Obele firmly reiterated his refusal to name the specific refineries involved in importing substandard crude.