The Dangote Petroleum Refinery and other domestic refineries have accused the state oil company , Nigerian National Petroleum Company Ltd (NNPCL Ltd) of not complying with the Federal government’s directive to sell crude to them in Naira.
The operators under the aegis of the Crude Oil Refiners Association of Nigeria (CORAN) disclosed that letters have been written to NNPC by individual refiners requesting crude, but there has been no response yet.
They held that there will be a rebound in the pricing of fuel once the President’s order is implemented.
However, they posited that the pronouncement alone is not enough. It must be with a force of law, either by executive order or by incorporating it into a new guideline so that the crude producers will be bound to sell to us in naira.
The Publicity Secretary of the Crude Oil Refiners Association of Nigeria NMDPRA, Eche Idoko, said the Nigerian Midstream and Downstream Petroleum Authority is expected to kickstart the process.
“We have not started buying crude from NNPC. Individual members have written to them (NNPC) already, and they have several requests from these refineries before them.
“Typically, we would expect our regulator, in this instance, the NMDPRA, to kick start the process by calling for a meeting of all parties to discuss the framework for such supply or have NNPC respond to the various letters to it by the refineries requesting for crude,” Idoko noted.
The CORAN spokesperson had earlier stated that the supply of crude oil to local refineries in naira would bring down the cost of petrol and strengthen the naira against the dollar.
READ ALSO:FEC orders NNPC to sell crude to Dangote, other refineries in naira
Idoko commended Tinubu for listening to the voice of indigenous refiners but noted that an executive order should be issued on the new directive.
The crude oil refiners also sought a meeting with the economic team to work out a rate that would favour the Nigerian market.
“Yes, we will see a rebound in the pricing of fuel once the President’s order is implemented. Mind you, the pronouncement alone is not enough. It must be with a force of law, either by executive order or by incorporating it into a new guideline so that the crude producers will be bound to sell to us in naira,” Idoko stated.
Dangote refinery and other domestic refiners have been complaining about the difficulties associated with accessing crude oil for their plants. Recently, the management of Dangote Group insisted that the IOCs were still frustrating crude supply to the 650,000-capacity refinery.
In a statement, the group alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents, saying the local price of crude will continue to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.
The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.
A senior official at the Dangote refinery, who pleaded not to be named due to lack of authorisation to speak on the matter, confirmed that the plant had yet to start buying crude in naira from NNPC.
The spokesperson of NNPC, Olufemi Soneye, did not respond to enquiries on the matter when contacted by our correspondent.
By: Babajide Okeowo
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