The Nigerian government and oil producers have agreed to ensure a steady supply of crude oil to local refineries at market-driven prices.
This decision aims to optimize business for operators while guaranteeing enough crude oil for refineries, following concerns raised by Dangote Petroleum Refinery about possible sabotage.
The agreement, made during a meeting organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), involves producers from the Oil Producers Trade Section (OPTS). They created a plan that benefits both parties, ensuring local refineries are not hurt by unfair pricing.
Gbenga Komolafe, the head of NUPRC, stressed the importance of rules to prevent pricing from negatively impacting domestic refineries. He asked producers and refiners to provide monthly price quotes for better regulation.
The regulator aims to support a fair market system, avoid harmful pricing practices, and attract investments to improve oil production and energy supply in the country.
According to a statement from the Commission’s Public Affairs Unit, this agreement follows the Petroleum Industry Act (PIA) 2021 to create fair opportunities for both producers and refiners.
