The Nigerian government and crude oil producers have agreed to ensure a sustainable supply of crude oil to local refineries under a market-driven pricing system.
The collaboration was reached during a meeting between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI), aims to balance the optimal operations of producers with the need to keep refineries well-supplied.
The initiative is part of implementing the Petroleum Industry Act (PIA) 2021, with a focus on pricing and crude supply to domestic refineries.
NUPRC’s Chief Executive, Engr. Gbenga Komolafe, emphasized President Bola Ahmed Tinubu’s commitment to fair business practices and directed producers and refiners to provide monthly crude supply price quotes for effective monitoring and regulation.
Komolafe highlighted the importance of transparency and adherence to rules, stressing that pricing strategies must not hinder domestic refining capacity.
The NUPRC aims to attract investments to boost upstream development and ensure sustainable energy supply in Nigeria’s midstream and downstream sectors.
