The Petroleum Products Retail Outlet Owners (PETROAN) has accused crude oil producers of diverting 500,000 barrels meant for domestic refineries to the international market.
According to its National Public Relations Officer, Dr Joseph Obele who disclosed this in a press statement yesterday, the deal is in connivance with the international traders because of foreign exchange (forex).
He said: “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 association commended commended the Federal Government for banning the exportation of crude oil allocated to local refineries.
According to Obele, the move is expected to boost local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.
PETROAN said the exportation of crude oil meant for domestic refining has led to the abandonment of local refineries.
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The statement stressed that it has been a major racketeering scheme, with producers and traders prioritizing quick foreign exchange proceeds over local refining.
But the ban, said the association, is expected to have a positive impact on the economy, as refining crude oil locally will enrich the petrochemical industries and agricultural sector, reduce inequalities in income, and enable Nigeria to transition from a raw material supplier to a value-added product supplier.
PETROAN’s National President, Dr. Billy Gillis-Harry, urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take swift action against refineries, cargo vessels, and companies that default on this policy.
Harry said the policy would guarantee sufficient refined petroleum products in the country, leading to price reductions and better days ahead for Nigerian consumers.