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From Ndubuisi Orji, Abuja
House of Representatives Committee on Petroleum Resources (Downstream) has raised concerns over challenges in crude oil supply to local refineries in the country.
Chairman of the committee, Ikeagwuonu Ugochinyere, said the supply gap in crude oil may lead to further rise in price of Premium Motor Spirit (PMS) and possible scarcity of the product, if it is not addressed immediately.
Ugochinyere explained that findings from his committee that there have been
supply of crude oil to the domestic refineries, including Dangote Refinery, which, which according to him, remains central to Nigeria’s efforts to stabilise fuel supply.
He stated that while the refinery is entitled to about 21 cargoes of crude oil and requires at least 15 to operate optimally, it is currently receiving only five cargoes, which is below the minimum threshold needed to sustain production.
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The lawmaker, while noting that “this shortfall is already undermining refining capacity and poses a direct risk to fuel availability across the country,” said local refineries must be prioritised for high-grade crude sourced from the Niger Delta to ensure efficiency and optimal output.
Furthermore, Ugochinyere raised concerns that domestic refiners are now allegedly paying a premium of over $18 per barrel to foreign trading companies, a sharp increase from the previous $2–$4.
“Crude oil produced in Nigeria is being sold to our refineries through middlemen based in London and Dubai, who add no value but collect huge fees. For every barrel priced at $100, refineries pay $118, with the additional $18 going to intermediaries.”
Consequently, he implored the Presidential Technical Committee on the Crude-for-Naira initiative to reconvene within 48 hours to resolve the supply bottlenecks, as well as immediate restoration of adequate crude supply to domestic refineries.
Ugochinyere, who also called for strict enforcement of the Domestic Crude Oil Supply Obligation under the Petroleum Industry Act (PIA) 2021, and an urgent review of crude quality standards, appealed to President Bola Tinubu to issue a stronger executive directive to ensure compliance and safeguard Nigeria’s domestic energy supply chain.
