The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Minister of State for Petroleum, Heineken Lokpobiri, to conduct an appraisal of the first phase of the naira-for-crude oil initiative.

PETROAN?s spokesperson, Joseph Obele, said in a statement that the appraisal of the initiative will determine the next steps in the best interest of Nigerians. Obele noted that as the naira-for-crude tenure ends today, the association is cautioning refinery operators to prioritise the importation of high-quality crude oil.

?We urge the refinery operators to ensure that the crude oil imported meets global standards to guarantee the production of high-quality petroleum products. It is noteworthy that Nigerian crude oil, classified as sweet crude (with less than 0.5 per cent sulphur content), is among the best in the world, and we see no reason why imported crude oil should be of lower standards.

?The association is concerned that the importation of substandard crude oil will compromise the quality of petroleum products, undermine the growth and development of the Nigerian oil and gas industry, and ultimately harm Nigerian consumers.

?Furthermore, the permutations in the media that the price of petroleum products might likely increase as the naira-for-crude deal comes to an end is a serious concern to PETROAN. In order to avoid this scenario and ensure price stability and energy sufficiency, PETROAN advocates that the window for importation of refined petroleum products should remain open.

?We call on regulatory agencies to be on high alert and conduct thorough laboratory analysis on all crude oil imports to ensure they meet the required standards. We also urge the relevant authorities to ensure that refinery operators adhere to the highest standards in their operations, including the importation of high-quality crude oil,? Obele said.

The spokesperson noted that PETROAN is optimistic that the recent increase in the price of petrol is temporary. He said the Federal Government?s reforms under the Petroleum Industry Act (PIA) will encourage competition in the downstream sector, noting that competition is a catalyst for price reduction in any sector.

Nigeria officially began selling crude oil and refined petroleum products in naira to local refineries on October 1, 2024.

Six months later, the Nigerian National Petroleum Company (NNPC) Limited said negotiations were ongoing for a new naira-for-crude deal with the refinery, as the current agreement expired at the end of March. However, Dangote Petroleum Refinery announced on March 19 that it has temporarily halted the sale of petroleum products in naira. (Daily Sun)

Update news