500,000 Barrels of Crude Oil Stolen Daily, PETROAN Alleges

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has made a shocking allegation, accusing oil producers of diverting approximately 500,000 barrels of crude oil daily, meant for local refineries.

This diversion has led to the abandonment of many local refineries, as oil producers prioritize quick foreign exchange proceeds over domestic refining.

PETROAN lamented that the failure of oil producers to meet domestic crude supply obligations has resulted in the abandonment of local refineries.

This has hindered the growth of the refining industry and contributed to Nigeria’s economic woes.

Refining crude oil locally can have numerous benefits, including enriching the petrochemical and agricultural sectors, reducing inequalities in income, and enabling Nigeria to transition from a raw material supplier to a value-added product supplier.

Additionally, local refining can boost refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.

PETROAN’s National President, Billy Gillis-Harry, urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take swift action against refineries, cargo vessels, and companies that default on this policy.

The NUPRC has warned exporters against tampering with cargoes meant for local refineries, stating that diverting crude oil meant for local refineries is a clear violation of the country’s law.