The Nigerian government and local crude oil producers have pledged to maintain a sustainable supply of crude to domestic refineries under market-determined pricing.
This commitment, facilitated by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), aims to balance the profitability of oil producers with the operational needs of refineries. This is to ensure they are not disadvantaged by excessive pricing.
NUPRC has mandated monthly price quotes from oil producers, aiming to enforce transparency and prevent market inefficiencies. This directive, part of efforts to implement the Petroleum Industry Act (PIA) 2021, underscores the regulator’s role in overseeing fair practices and optimizing Nigeria’s refining capacity.
Meanwhile, Dangote Petroleum Refinery has raised concerns over International Oil Companies (IOCs) allegedly inflating prices for local crude, leading the refinery to increase imports from the US.
In summary, regulatory efforts are focused on fostering a balanced and transparent crude oil market that supports local refinery operations and national economic stability, while addressing challenges posed by pricing dynamics and international market influences.