Federal Government and Dangote Refinery have agreed to increase crude supplies and domestic refining as Dangote again pushes diesel and aviation fuel prices to 940 naira and 980 naira respectively.
Amid complaints from the Dangote refinery, the Federal Government and crude oil producing companies have agreed on crude oil to cater for local refining and export.
The refinery management had repeatedly complained about inadequate crude supplies to its 650,000 barrels per day (bpd) crude supply facility in Lagos.
However, at the instance of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), producers under the auspices of the Petroleum Producers Trading Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI) agreed on a mutually beneficial framework aimed at ensuring that local refineries are not crushed by excessive prices.
The parties made the commitment on Monday during a virtual meeting with OPTS chaired by the Chief Executive of the Commission, Engineer Gbenga Komolafe, convened for a status review of the framework for seamless implementation of the Domestic Crude Oil Supply Commitment Template.
The meeting was part of efforts to effectively implement key provisions of the Petroleum Industry Law, especially on pricing and crude oil supply to domestic refineries.
Komolafe said the engagement provisions are necessary to ensure that the pricing model of oil producers is not seen as strangling domestic refineries.
He instructed producers and refiners to submit freight quotes for crude oil supply and delivery to the regulator in the future to effectively monitor and regulate transactions between the parties, stressing that “we need monthly price quotes.
“The Domestic Crude Oil Supply Obligation (DCOSO) is consistent with the country’s energy security. The NURPC chief said the government is overhauling the regulatory process. He further explained: “We will ensure transparency in all our processes.
