The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has accused some local refineries of importing substandard crude oil with high sulphur content in an attempt to cut costs. Speaking on Thursday, PETROAN’s National Publicity Secretary, Joseph Obele, stated that the trend began after the Federal Government suspended the naira-for-crude deal. While he declined to name the refineries involved, he expressed hope that they would adjust their practices upon seeing the report.
“Many may not realize it, but crude oil with high sulphur content does not meet global standards,” Obele noted. PETROAN has urged refinery operators to prioritize high-quality crude imports to ensure the production of premium petroleum products.
Highlighting Nigeria’s position as a producer of high-quality sweet crude, Obele questioned why imported crude should be of lower standards. He warned that the influx of substandard crude could compromise fuel quality, hinder the growth of Nigeria’s oil and gas industry, and negatively impact consumers.
PETROAN called on the Federal Government and regulatory agencies to conduct thorough laboratory tests on all imported crude to ensure compliance with global standards. Additionally, the association urged the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to review the naira-for-crude initiative and determine the best path forward for Nigeria.
Amid concerns that fuel prices could continue rising following the end of the naira-for-crude deal, PETROAN advocated for keeping the window open for refined petroleum imports to maintain price stability and energy security.
Obele expressed optimism that the recent hike in PMS prices is temporary, noting that competition in the downstream sector—spurred by the Petroleum Industry Act—could eventually lead to price reductions. PETROAN also pledged to conduct independent laboratory tests on petroleum products to ensure its members and the public receive only quality fuel.
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