FG engages local refiners on products pricing, dismisses dirty fuel import report

The Federal Government has met with local refiners of crude oil on a number of issues including pricing of their products and exportation to other countries.

The meeting held in Abuja on Tuesday also involving oil market provided an opportunity to clear the air on a report of dirty fuel being imported into the country as claimed by Dangote Refinery.

Oil marketers stated the meeting that though local refineries were producing some refined products, it would not stop them from patronising other sources, in addition to buying from the indigenous producers.

The Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, while reacting to claims of dirty fuel importation to Nigeria, said the refined petroleum products with high-sulphur contents were last imported in February.

This, it said, had since been addressed by the regulator.

Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, said

“The NMDPRA today engaged with select marketers who are involved in the importation of AGO (diesel), ATK (aviation fuel) and PMS (petrol), as well as refiners of these products. The singular objective is to continue to collaborate in a manner that guarantees energy security within the country,” he stated.

He said discussions at the meeting covered issues of pricing and competition, adding that the agency would continue to engage with operators “to see that we land at a place where it is ultimately beneficial to Nigerians.”

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He added, “On May 14, 2024, the authority hosted a meeting with marketers. We also had an engagement with refiners separately. What is different today is that both refiners and marketers are around the table, and the singular objective of today’s meeting was to continue to deliberate on how we will guarantee fuel supply stability within a fairly priced market.

“There are several issues that came with that, such as pricing issues, competition, quality, etc. Some of these issues will be ongoing, but all it requires will be continuous engagements and consultations.”

He also spoke on claims that the government was trying to force marketers to buy products from a refinery in Nigeria.

The NMDPRA official said, “What we have in Nigeria is a deregulated market that remains open.

“The law that governs us, which is the PIA, makes several provisions and the authority continues to work towards operationalising all of them. So that’s the guarantee we give, that in the fullness of time, all aspects of the PIA will be operationalised.”

Asked to state the refined product that was considered by parties at the meeting, Ukoha said, “Currently, the refiners locally are producing substantial volumes of AGO (diesel), ATK (aviation fuel) and we have assurances that shortly PMS will also kick in. There are also other intermediate products being produced.”

“There is no dirty fuel that is being brought into Nigeria,” Ukoha declared when asked to react to the allegations levelled against the NMDPRA by a senior official of the Dangote refinery.

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It was reported on Monday that the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to marketers to import dirty refined products into the country.

Responding to this on Tuesday, the Federal Government’s agency insisted that it had adopted all the stipulated procedures required for the importation of refined petroleum products into Nigeria to halt the inflow of dirty fuels.

It further stated that refineries in Nigeria were also taking steps to see that the refined products that they produce conformed with the standards approved by ECOWAS for the region.

The Group Managing Director, RainOil Ltd, Gabriel Ogbeche, said marketers were free to source products anywhere, but noted that local refiners were being patronised.

“One of the things we’ve agreed is that there’s going to continually be a level playing field between the marketers and refiners. We will continue to collaborate for the best interest of the industry,” he said.

Asked to state the challenges faced by marketers operating in the downstream sector which they would want the government to address, Ogbeche replied, “Up till today we have options and I can assure you that all the major marketers have been patronising the local refineries and we will continue. We also have the option of getting products from other sources and to the best of our knowledge that has not changed, even though conversations around that are ongoing.”

FG engages local refiners on products pricing, dismisses dirty fuel import report