…Demands urgent action to rescue local refineries from unfair trading, dumping
Crude Oil Refineries Association of Nigeria (CORAN) has hailed the decision of the Senate to institute a probe into the importation of substandard and harmful diesel and other petroleum products into Nigeria.
Reacting to the deliberation at the upper legislature, yesterday, the chairman of CORAN, Momoh Oyarekhua said it was a welcome development that calls for commendation of the senate.
During plenary on Wednesday Senator Asuquo Ekpenyong representing Cross River South senatorial district called the Senate’s attention to the continued importation of substandard petroleum products and dumping of hazardous diesel into Nigeria.
Read also: CORAN intensifies demand for crude oil supply guarantees to members
He observed that that on the 16th of June 2024, 12 diesel cargos containing a total of 660KT of diesel were exported by foreign refineries to offshore Lome, Togo, for further distribution in West Africa, the main target being Nigeria
Senator Ekpenyong noted that the quality of the said diesel is below the Nigerian standard in terms of sulfur levels and that despite the substandard nature of the diesel, it still found its way into the Nigerian market noting that a track of the vessel showed that it was a shipped and transferred in Lome which proceeded to discharge into a jetty in Warri on the 21st of June 2024 with another discharge into another terminal on the 22nd of June 2024
He noted that the price of the imported substandard diesel is below market value which constitutes dumbing by the World Trade Organization (WTO) rule which stipulates that countries are permitted to take actions to protect their local industries in the event of dumbing, saying that the WTO also recognises the impact of dumping on domestic industries and therefore stipulates tariff regimes such anti-dumping duties and import restriction measures to ensure domestic producers are not unfairly disadvantage.
Senator Ekpenyong said “aware that even though the Nigeria midstream and downstream petroleum regulatory authority has recently revised the standard of diesel importation to Nigeria in line with the Petroleum Industry Act (PIA), it is apparent that they are incapable of enforcing compliance with the standard”
“Aware that the he Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has continued to issue import licenses for diesel and jet fuel despite sufficient local production capacity. Therefore, the best option for protecting Nigerians and our local refineries against dumping may be to place a ban on the importation of diesel as long as our local refineries can meet local demand. This ban will be beneficial to the Nigerian petroleum industry and indeed the entire nation”
He went further to state that the failure to ensure modular refineries are fully inaugurated and operational, as well as ensure that other existing refineries can function to full capacity, will continue to encourage the dumping of substandard and hazardous petroleum products and make Nigeria a dumpsite for dirty fuel with both human and mechanical consequences.
Supporting the motion, the senator representing Edo North senatorial district, Senator Adams Oshiomole said having read through the motion that there was nothing else to add other than to state that there are saboteurs all over the country who are appointees of government and are determined to sabotage the efforts of the government. He decried the continued issuance of import licenses despite sufficient local refining capacity.
Reacting to the decision of the senate to intervene, Momoh Oyarekhua said the pronouncement of the senate is in tandem with the demands of the refinery owners association. He said its members have suffered hardship due to many obstacles with many installed modular refineries unable to find sufficient feedstock to meet installed production capacity.
“We will be happy to see the outcome of the senate investigation and we thank the distinguished senators for showing interest in this matter as we believe that with collective engagements such as this, between the legislature and the executive, involving all stakeholders, these troubling issues can be resolved and on time before things get worse than it is currently.”
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