Mkpoikana Udoma
Port Harcourt — The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has cautioned refinery operators against importing substandard crude oil, emphasizing the need for high-quality imports as the naira-for-crude deal expires today.
In a statement signed by its National Public Relations Officer, Dr. Joseph Obele, PETROAN stressed that Nigerian crude oil, classified as Sweet Crude due to its low sulfur content – less than 0.5% – ranks among the best in the world.
The association insists that imported crude must meet global standards to ensure the production of high-quality petroleum products.
“We see no reason why imported crude oil should be of lower standards. The importation of substandard crude oil will compromise the quality of petroleum products, undermine the growth of Nigeria’s oil and gas industry, and ultimately harm consumers.”
PETROAN also expressed concern over speculations that petroleum product prices may rise following the expiration of the naira-for-crude arrangement.
The association called for continued access to imported refined petroleum products to stabilize prices and ensure energy sufficiency.
“The permutations in the media that petroleum prices might increase as the naira-for-crude deal comes to an end is a serious concern to PETROAN. In order to avoid this scenario, we advocate that the window for importing refined petroleum products should remain open.”
As Nigeria navigates this transition, PETROAN urged regulatory agencies to conduct rigorous laboratory testing on all crude oil imports to verify their quality.
“We call on regulatory agencies to be on high alert and conduct thorough laboratory analysis on all crude oil imports to ensure they meet the required standards. We also urge the relevant authorities to ensure that refinery operators adhere to the highest operational standards.”
The association further called on the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, to conduct a comprehensive review of the Naira-for-crude initiative to determine the next steps in Nigeria’s energy sector.
Despite concerns over fuel price fluctuations, PETROAN remains optimistic that the recent increase in the pump price of Premium Motor Spirit, PMS, is temporary.
“The reforms introduced by the Petroleum Industry Act, PIA, encourage competition in the downstream sector. Competition is a catalyst for price reduction in any sector. We believe that as the market adjusts to the new realities, prices will stabilize and eventually decrease.”
To protect both its members and Nigerian consumers, PETROAN announced plans to conduct independent laboratory testing on refined petroleum products.
“We will conduct laboratory testing on refined petroleum products to determine which refinery or depot our members should buy from. This is to ensure that our members and the Nigerian public are not sold substandard products.”
