A Review of the Nigerian Energy Industry

DPR worry over illegal refineries

12 December 2011, Sweetcrude, Yenagoa – The Department of Petroleum Resources (DPR) says it is alarmed by recent increase in the number of illegal refineries in the Niger Delta.

DPR’s head of downstream activities in Bayelsa State, Dr. Duncan Eradiri, made the observation on Sunday in a statement to mark the maiden meeting between the DPR and the Independent Petroleum Marketers Association of Nigeria.

Eradiri in the statement on Sunday observed that emergence of illegal refineries had affected the quality of petroleum products in the region.

He regretted that some retail outlets were selling adulterated kerosene and other petroleum products they bought from illegal refineries.

Eradiri said, “The Department is appealing to all marketers to desist from patronising such products for sale at their retail outlets.”

According to him, over five cases of kerosene explosions resulting in first and second degree burns.

“The operators of retail outlets and the regulators have a very vital role to play by being vigilant to avoid pushing the cooked up product to the market,” he added.

He blamed insufficient supply of refined products in the country on the government’s inability to repair the four refineries.

Eradiri said, “We are all aware that petroleum product supply into the country is through importation by the NNPC, major marketing companies and some private companies, of which the NNPC is the major importer. Despite the number of companies that do import these products into the country, it is not sufficient for the local market. This is as a result of the failure of our four refineries to produce enough petroleum products to serve the country.”

He warned marketers against jacking up fuel pump price, saying the price per litre of fuel remained at N65.

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