500,000 bpd crude for local refineries diverted abroad — PETROAN
The national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Grills Harry, has raised concerns that approximately 500,000 barrels of crude oil per day allocated for domestic refining often found their way to the international market. Harry in a statement issued in Port Harcourt on Thursday commended the federal […]
The national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Grills Harry, has raised concerns that approximately 500,000 barrels of crude oil per day allocated for domestic refining often found their way to the international market.
Harry in a statement issued in Port Harcourt on Thursday commended the federal government for banning the exportation of crude oil allocated to local refineries.
He said the move is expected to boost local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.
He said the exportation of crude oil meant for domestic refining has led to the abandonment of local refineries and has been a major racketeering scheme, with producers and traders prioritising quick foreign exchange proceeds over local refining.
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“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, reduce inequalities in income, and enable Nigeria to transition from a raw material supplier to a value-added product supplier,” he said.
Harry urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take swift action against refineries, cargo vessels, and companies that default on this policy.