FG Meets Local Refiners Over Pricing, Faults Dangote's Dirty Fuel Claim

  


The Federal Government of Nigeria recently convened a crucial meeting with oil marketers and local refiners to address key issues surrounding the pricing and importation of refined petroleum products. This meeting came in the wake of allegations from a senior official at Dangote Petroleum Refinery regarding the importation of high-sulfur, "dirty" fuel into Nigeria.

In response to these allegations, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) categorically denied the importation of dirty fuel into Nigeria. The Executive Director of Distribution Systems, Storage, and Retailing Infrastructure at NMDPRA, Ogbugo Ukoha, emphasized that stringent measures were in place to ensure the quality of imported fuels. Ukoha clarified that the importation of refined petroleum products with high sulfur content was halted since February, following strict regulatory enforcement.


Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, had earlier accused NMDPRA of indiscriminately issuing licenses for the importation of high-sulfur diesel from Russia. He highlighted concerns about the carcinogenic effects of such fuels, which have been banned in some European countries. However, NMDPRA countered these claims, assuring that imported diesel now meets the 50 parts per million (ppm) sulfur standard mandated by the Economic Community of West African States (ECOWAS).


Ukoha reiterated that NMDPRA remains committed to ensuring only high-quality petroleum products are imported and consumed in Nigeria. He provided data showing a significant reduction in the sulfur content of imported fuels, aligning with ECOWAS standards. The government has also deferred compliance enforcement for local refiners until the end of 2024, giving them time to upgrade their facilities to meet the new standards.


The meeting in Abuja, which included officials from Dangote Refinery and other local modular refineries, focused on pricing, competition, and quality control. Both the government and stakeholders agreed on the need for continuous dialogue to ensure a stable and fairly priced fuel market. The NMDPRA assured that it would not force marketers to exclusively buy from local refineries but emphasized the importance of a level playing field.

Looking ahead, the NMDPRA highlighted ongoing efforts to improve the petroleum infrastructure in Nigeria. This includes plans to integrate new refineries with desulfurization units to further lower sulfur levels in refined products. The goal is to enhance the local refining capacity and reduce reliance on imported fuels, ensuring a sustainable and environmentally friendly energy sector.



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