Imported Petrol Cheaper Due To Low Quality – Refinery

Imported Petrol Cheaper Due To Low Quality – Refinery

The Crude Oil Refiners Association of Nigeria has challenged claims that imported petrol is cheaper than locally refined fuel, saying the difference comes from quality, not efficiency.

The group reacted to a report by the World Bank Group, which suggested that imported fuel costs less in Nigeria. Refiners argued the comparison failed to match products of equal standard.

Spokesman Eche Idoko explained that many imported fuels are blended products made to meet only minimum standards, making them cheaper but not equal in quality.

He said locally refined fuel goes through more advanced processes, producing higher-grade products. According to him, comparing both without considering technical differences gives a false impression.

He added that proper comparison should include factors like density, flash point and pour point, since different fuel grades attract different prices.

He also noted that blending is legal but usually results in lower-grade fuel, which costs less than fully refined products. Without matching identical grades, he said price conclusions would be misleading.

The group also blamed high local prices on crude supply issues and premium pricing faced by refineries, including Dangote Refinery. It maintained that local refiners lack incentives and pay more for crude, limiting any cost advantage.

Despite the World Bank’s position, refiners insisted that fair comparison must reflect both quality and production conditions.