The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has commended the federal government for banning the exportation of crude oil allocated to local refineries.
Reacting to the development on Wednesday – yesterday, February 5 – Dr Billy Gillis-Harry, PETROAN’s National President, urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take swift action against refineries, cargo vessels and companies that would breach the directive.
The NUPRC had earlier warned oil exploration and production companies against diversion of crude oil designated for domestic refineries, describing it as a contravention of the law, saying it would no longer grant export permits for exportation of designated crude oil cargoes meant for domestic refining.
Gillis-Harry said the government’s decision is expected to boost local refining capacity, reduce the importation of refined petroleum products and ease pressure on foreign exchange supply, lamenting that the exportation of crude oil meant for domestic refining and making easy money 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 ban is expected to have a positive impact on the economy, as refining crude oil locally will enrich the petrochemical industries and agricultural sector.
“It will reduce inequalities in income and enable Nigeria to transition from a raw material supplier to a value-added product supplier.
“I believe that this policy will guarantee sufficient refined petroleum products in the country, leading to price reductions and better days ahead for Nigerian consumers,” he said.
