By Orkular Shaagee
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has identified exportation of crude oil meant for domestic refining as a major source of neglect of local refineries, as well as the undermining of efforts to achieve self-sufficiency in petroleum product supply.
PETROAN, therefore commended the Federal Government for banning the exportation of crude oil allocated to local refineries.
The association made this known in a statement made available to newsmen by its National Public Relations Officer, Joseph Obele.
“The exportation of crude oil has been a major racketeering scheme, with producers and traders prioritizing quick foreign exchange proceeds over local refining.
“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,” the statement read.
It also quoted PETROAN’s National President, Billy Gillis-Harry, as urging the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, to “take decisive action against refineries, cargo vessels, and companies that fail to comply with the policy.”
Gillis-Harry further emphasized that the policy will ensure adequate supply of refined petroleum products, leading to lower prices and improved economic conditions for Nigerian consumers.
The directive by the Federal Government is expected to enhance local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange reserves.