By Ed Malik, A | ed@ddnewsonline.com | posted november 8th, 2024
Mr. Momoh Oyarekhua, Chairman of the Crude Oil Refineries Association of Nigeria (CORAN) and Executive chairman of OPAC Modular Refinery, has emphasized the importance of transparency and collaboration among all stakeholders to address issues in Nigeria’s petroleum sector, particularly relating to the pricing index and importation of substandard petrol.
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Speaking to Channels Television, Oyarekhua highlighted that local refineries, including both modular refineries and larger operations like the Dangote Refinery, are under threat due to the unchecked importation of petrol, which undermines their market competitiveness and poses challenges for the country’s petroleum industry as a whole.
“CORAN advocates for transparency amongst industry players”, expressed Oyarekhua, in a nutshell.
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According to the CORAN Chairman, local refineries face challenges such as market competition from imported products and the issue of substandard petrol, which adversely affects public perception of petroleum quality in Nigeria.
He recounted a personal experience with imported petrol that changed color over time, contrasting it with the high, stable quality of domestically produced products.
Oyarekhua also highlighted the tension between CORAN and other stakeholders in the petroleum value chain over pricing mechanisms. CORAN argues that its pricing aligns with forex market movements and warns that significantly cheaper prices could indicate substandard imports.
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CORAN recently convened a Summit aimed at aiding government efforts to become a net exporter of refined petroleum products. Members of the association expressed concerns that continued importation of foreign products would hinder local competition and undermine this vision.
To address these challenges, Oyarekhua stressed the need for dialogue with both downstream and upstream players to create a competitive and balanced price index, enabling growth and stability in the sector.
He also highlighted the impact of forex fluctuations on petrol marketing costs and questioned how importers are able to offer lower prices than locally refined products.
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CORAN calls for government support to protect domestic refineries, aligning with the objectives of the Petroleum Industry Act (PIA) and promoting a unified and sustainable petroleum industry in Nigeria.