The Crude Oil Refinery Owners Association of Nigeria (CORAN) has blamed the oil industry for its failure to meet domestic fuel consumption demands......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Legit.ng earlier reported that Nigeria’s petrol consumption dropped from 66 million litres per day to 50 million due to subsidy removal.
Refinery owners blame FG for the shortfall
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this recently.
Refiners, however, said regulators could not allocate enough crude oil to local refineries, preventing them from reaching their full production capacity.
They accused the NMDPRA of preferring to issue petrol import licenses to meet the needs of domestic refiners.
Punch quotes CORAN’s publicity secretary, Eche Idoko as saying that the prolonged absence of oil allocation under the Domestic Crude Oil Supply Obligation (DSCSO) guidelines is the reason for the shortfall in petrol supply.
Idoko stated this as he reacted to a revelation by NMDPRA that Nigeria’s three functional refineries produce less than 50% of the country’s daily petrol consumption needs.
The authority said the shortfall was being met by importation as local production is less than consumption.
CORAN says Oil producers violate industry laws
CORAN disclosed that the reason local refineries could not operate at full capacity is due to the government’s refusal to allocate more crude to the refineries.
The CORAN spokesman said that for over six months, local refineries have not received a single barrel of oil via the DSCO or any other arrangement.
He lampooned the government for continuing to rely on imports while Nigeria’s refinery capacity has almost 900,000 barrels daily.
He said the Petroleum Industry Act (PIA) mandates crude producers to meet domestic obligations before exporting, saying the producers have flouted the Act due to a lack of enforcement.
Idoko blamed the regulators, in this case, the NMDPRA, which has failed to enforce the PIA and the DSCO.
He said the regulator should be held accountable for the challenges preventing refineries from hitting full operational capacities.
He cited the Dangote Refinery example, which asked marketers in 2024 to load products from its storage tanks.
Petrol landing cost drops
Meanwhile, on Thursday, February 20, 2025, the landing cost of petrol crashed to N928.99 per litre.
Dealers said the cost factors in various expenses such as shipping, import duties, and exchange rates were responsible.
Dangote Refinery crashes diesel prices by N55
Legit.ng previously reported that Dangote Refinery has crashed diesel prices to N1,020 per litre from N1,075 at the loading gantry.
The Refinery said the move was to serve its customers and Nigerians better.
This is the third time the plant has reduced diesel prices since it started producing the commodity in January 2024 from N1,700 per litre to the current price.