PETROAN: Oil producers prioritise FX proceeds, export 500,000bpd crude allocated for local refineries

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has commended the federal government for banning the export of crude oil allocated to local refineries.

In a statement on Wednesday by Joseph Obele, the association’s public relations officer (PRO), Obele said approximately 500,000 barrels per day (bpd) meant for local refining are being diverted to the international market.

Obele noted that the crude oil export ban will help boost local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.

“According to PETROAN, 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 prioritizing quick foreign exchange proceeds over local refining,” 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 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.”

Commenting on the ban, Billy Gillis-Harry, the president of PETROAN, asked the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take swift action against refineries, cargo vessels, and companies that default on the policy.

Gillis-Harry said the ban will guarantee sufficient refined petroleum products in the country, leading to price reductions and better days ahead for consumers.

Also, while speaking with TheCable, Gillis-Harry said Nigeria must always be prioritised.

“We must pick Nigeria first, our economy must be the first,” he noted.

On Monday, the NUPRC warned oil production companies to adhere to crude oil supply obligations to local refineries, saying it will no longer grant export permits for products allocated for domestic refiners.