The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has commended the federal government for banning the exportation of crude oil allocated to local refineries.
President of PETROAN, Dr. Billy Grillis-Harry gave the association’s backing to the government policy in a statement issued yesterday, by National Public Relations Officer of PETROAN, Dr. Joseph Obele.
Gillis-Harry said the ban was expected to boost local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.
According to the PETROAN boss, exportation of crude oil meant for domestic refining had led to the abandonment of local refineries.
He alleged that there had been a major racketeering scheme in the Domestic Crude Supply Obligation (DCSO) policy, with producers and traders prioritising quick foreign exchange proceeds over local refining.
According to PETROAN, “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.”
Grillis-Harry also said the ban was expected to have positive impact on the economy, saying refining crude oil locally would 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, however, urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take swift action against refineries, cargo vessels, and companies that default on this policy.
He expressed belief that the policy would guarantee sufficient refined petroleum products in the country, leading to price reductions and better days ahead for Nigerian consumers.
