The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns about crude oil producers diverting approximately 500,000 barrels per day (bpd) intended for domestic refineries. This diversion allegedly contravenes the Petroleum Industry Act, which mandates oil producers to supply specific volumes of crude to local refineries before exporting the remainder.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has responded by stating that it will deny export permits to producers who fail to meet their domestic supply quotas. The NUPRC emphasized that the diversion of crude designated for domestic refineries is a violation of the law and warned that export permits would be withheld for such cargoes.
In a related development, PETROAN has accused Dangote Refinery of attempting to suppress competition in the downstream sector. This accusation follows Dangote Refinery's claim that marketers are importing substandard petroleum products at cheaper rates. PETROAN refuted this allegation, asserting that it plans to import high-quality petrol at prices lower than those currently offered by Dangote Refinery. The association emphasized the importance of competition in ensuring consumers receive the best value and cautioned against monopolistic practices in the market.