The Crude Oil Refinery Owners Association of Nigeria has urged the Federal Government to exercise caution when granting import licences for refined petroleum products, citing ongoing tensions between the Dangote Petroleum Refinery and domestic oil marketers.
CORAN's statement follows recent claims by the Petroleum Products Retail Outlet Owners Association of Nigeria that it was preparing to import Premium Motor Spirit and sell it at a lower price than the Dangote refinery's N990 per litre.
PETROAN stated that it was awaiting approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority for its importation plans.
Similarly, the Independent Petroleum Marketers Association of Nigeria stated that it was in the process of obtaining an import licence from NMDPRA, implying that importing fuel could be less expensive than sourcing it from Dangote's refinery.
CORAN expressed concern that an increase in fuel imports would jeopardise efforts to support local refineries and disrupt domestic markets.
However, CORAN's Publicity Secretary, Eche Idoko, expressed concern that marketers were still intending to import what he described as substandard petrol into the country, raising concerns about the potential impact on fuel quality and safety.
According to Idoko, some international traders were determined to use the Nigerian market as a dumping ground for low-cost petroleum products rejected in Europe, exacerbating concerns about the quality and safety of imported fuels.
"We are categorically stating that the NMDPRA should stop issuing import licences to people bringing in products in which we have sufficient supply. Even if they do issue, it should be based on the shortfall, rather than saying you're importing to compete.
"We're not telling the NMDPRA how to do its job. We are simply asking the NMDPRA to protect the Nigerian domestic refining market. They should do whatever they think is best. However, I do not believe that licensing European traders is sufficient to defend the Nigerian market.
"We're not telling the NMDPRA how to do its job. We are simply asking the NMDPRA to protect the Nigerian domestic refining market. They should do whatever they think is best. However, I do not believe that licensing European traders is sufficient to defend the Nigerian market.
"Continuous issuance of import licenses will kill our industry. The government must try to protect Nigeria's nascent refining industry, which can be done by refusing to grant import licenses to these conglomerates who are only interested in making Nigeria a market for their substandard products, according to a CORAN spokesman.
When reminded that the Petroleum Industry Act does not prevent the NMDPRA from issuing import licenses, Idoko pointed out that the same PIA emphasised "backward integration."
He contended that the Act was intended to promote domestic refining capacity rather than relying on imports, resulting in a more sustainable and secure petroleum sector.
"PIA says any product we have in-country refining capacity in, they should stop issuing licences," he informed us.
Idoko stated that CORAN is deeply concerned that many international traders continue to hold licenses to import fuel, which he believes is detrimental to the development of Nigeria's domestic refining industry.
He emphasised that the country's continued reliance on fuel imports could jeopardise efforts to strengthen local refineries, ultimately impeding economic recovery and long-term growth strategy.
"Nothing can be better than increasing domestic refining capacity. The Nigerian government does not oppose local refining. "People should be talking about building refineries, not importing products," he said.
CORAN's statement follows recent claims by the Petroleum Products Retail Outlet Owners Association of Nigeria that it was preparing to import Premium Motor Spirit and sell it at a lower price than the Dangote refinery's N990 per litre.
PETROAN stated that it was awaiting approval from the Nigerian Midstream and Downstream Petroleum Regulatory Authority for its importation plans.
Similarly, the Independent Petroleum Marketers Association of Nigeria stated that it was in the process of obtaining an import licence from NMDPRA, implying that importing fuel could be less expensive than sourcing it from Dangote's refinery.
CORAN expressed concern that an increase in fuel imports would jeopardise efforts to support local refineries and disrupt domestic markets.
However, CORAN's Publicity Secretary, Eche Idoko, expressed concern that marketers were still intending to import what he described as substandard petrol into the country, raising concerns about the potential impact on fuel quality and safety.
According to Idoko, some international traders were determined to use the Nigerian market as a dumping ground for low-cost petroleum products rejected in Europe, exacerbating concerns about the quality and safety of imported fuels.
"We are categorically stating that the NMDPRA should stop issuing import licences to people bringing in products in which we have sufficient supply. Even if they do issue, it should be based on the shortfall, rather than saying you're importing to compete.
"We're not telling the NMDPRA how to do its job. We are simply asking the NMDPRA to protect the Nigerian domestic refining market. They should do whatever they think is best. However, I do not believe that licensing European traders is sufficient to defend the Nigerian market.
"We're not telling the NMDPRA how to do its job. We are simply asking the NMDPRA to protect the Nigerian domestic refining market. They should do whatever they think is best. However, I do not believe that licensing European traders is sufficient to defend the Nigerian market.
"Continuous issuance of import licenses will kill our industry. The government must try to protect Nigeria's nascent refining industry, which can be done by refusing to grant import licenses to these conglomerates who are only interested in making Nigeria a market for their substandard products, according to a CORAN spokesman.
When reminded that the Petroleum Industry Act does not prevent the NMDPRA from issuing import licenses, Idoko pointed out that the same PIA emphasised "backward integration."
He contended that the Act was intended to promote domestic refining capacity rather than relying on imports, resulting in a more sustainable and secure petroleum sector.
"PIA says any product we have in-country refining capacity in, they should stop issuing licences," he informed us.
Idoko stated that CORAN is deeply concerned that many international traders continue to hold licenses to import fuel, which he believes is detrimental to the development of Nigeria's domestic refining industry.
He emphasised that the country's continued reliance on fuel imports could jeopardise efforts to strengthen local refineries, ultimately impeding economic recovery and long-term growth strategy.
"Nothing can be better than increasing domestic refining capacity. The Nigerian government does not oppose local refining. "People should be talking about building refineries, not importing products," he said.
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