…Warns of health, economic risks as naira-for-crude deal ends
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised the alarm over the importation of substandard crude oil by some local refineries in a bid to cut operational costs, following the suspension of the Federal Government’s naira-for-crude exchange deal.
Speaking exclusively to our correspondent on Thursday, the National Publicity Secretary of PETROAN, Joseph Obele, said that certain refineries have been importing crude oil with high sulphur content — a practice he described as dangerous and far below global standards.
“Some refineries are importing substandard crude into the country. They do this to cut costs following the stoppage of the naira-for-crude deal,” Obele disclosed. “We are not going to mention any particular refinery, but when those concerned see the report, they will make corrections.”
He emphasised that many Nigerians may not realise that not all crude is the same, warning that any crude with high sulphur content poses significant threats to product quality and environmental safety.
In an earlier statement, PETROAN advised refinery operators to maintain high standards and only import quality crude to ensure the production of clean, globally acceptable petroleum products.
“Nigerian crude oil, classified as sweet crude with less than 0.5% sulphur content, is among the best in the world. There is no justification for importing lower-quality crude,” Obele stated.
The association warned that the influx of substandard crude could compromise fuel quality, harm consumers, and hamper progress in the oil and gas sector. It called on regulatory agencies to remain vigilant by conducting comprehensive laboratory testing on all imported crude oil.
PETROAN also urged the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to review the first phase of the naira-for-crude policy to determine a sustainable path forward.
Obele further expressed concern that fuel prices may continue to rise following the end of the naira-for-crude initiative. To forestall this, PETROAN advocated for an open window for the importation of refined petroleum products to ensure market stability.
Despite recent hikes in petrol prices, the association remains hopeful. “We believe the recent increment in the price of PMS is temporary. The Petroleum Industry Act promotes competition, and competition will eventually drive prices down,” Obele added.
To safeguard its members and Nigerian consumers, PETROAN said it would commence independent laboratory testing of refined petroleum products across the country to guide members on credible sources of purchase.
“Our goal is to ensure Nigerians are not sold substandard products,” Obele concluded.
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