Petroleum retailers allege some local refineries import substandard crude imports, risking fuel quality and consumer harm, following the end of the naira-for-crude deal

[dropcap]T[/dropcap]he Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has raised serious concerns, alleging that some local refineries are importing substandard crude oil into Nigeria to cut costs.

Also read: NNPC raises petrol prices amid market shifts

The association claims these refineries are importing crude with high sulphur content, which falls below global standards.

Speaking to reporters, PETROAN National Publicity Secretary, Joseph Obele, disclosed that the practice began following the Federal Government’s suspension of the naira-for-crude deal.

While refusing to name the specific refineries involved, Obele stated that the affected entities were aware of their actions and expressed hope they would rectify the situation.

“Some refineries are importing substandard crude into the country. They do this to cut costs following the stoppage of the naira-for-crude deal,” Obele said.

“We are not going to mention any particular refinery, but when those concerned see the report, they will make corrections. Many may not know there is substandard crude. Any crude oil with high sulphur content does not meet the global standard.”

PETROAN had earlier issued a statement urging refinery operators to prioritise the importation of high-quality crude oil as the naira-for-crude tenure ended.

Obele emphasised that Nigerian Sweet Crude, known for its low sulphur content, is among the best in the world, and imported crude should not be of lower quality.

“The association is concerned that the importation of substandard crude oil will compromise the quality of petroleum products, undermine the growth and development of the Nigerian oil and gas industry, and ultimately harm Nigerian consumers,” Obele argued.

He called on the Federal Government and regulatory agencies to conduct thorough laboratory analyses on all crude oil imports to ensure compliance with required standards.

PETROAN also urged the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to appraise the first phase of the naira-for-crude initiative.

Furthermore, PETROAN expressed concern over potential price increases following the end of the naira-for-crude deal.

The association advocated for the continued open window for refined petroleum product imports to ensure price stability and energy sufficiency.

Obele expressed optimism that the recent PMS price increment is temporary, citing the Petroleum Industry Act’s focus on competition as a catalyst for future price reductions.

“To further protect the interests of our members and the Nigerian consumers, PETROAN will be vigilant and proactive.