Nigerian Economist Attributes Poor Petrol Quality to Weak Regulations
A Nigerian economist, Kelvin Emmanuel, has stated that the poor performance of petrol sold in the country is due to weak regulations, poor quality control, and the importation of substandard blended fuel products. Emmanuel made this claim during an appearance on Channels Television’s breakfast program, The Morning Brief, where he questioned the effectiveness of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
According to Emmanuel, the Petroleum Industry Act (PIA) mandates the regulator to maintain functional laboratories at ports of entry to test imported petroleum products before discharge. These tests are meant to cover critical parameters such as distillation levels, cloud point, flash point, octane rating, and sulphur content. Emmanuel noted that pricing in the petroleum industry is directly linked to product quality.
The economist questioned the authenticity of certificates of quality issued for imported products, suggesting that a forensic audit of such documents may not stand scrutiny. He also alleged that a significant portion of the imported products originates from Russia, following the 2022 invasion of Ukraine and subsequent sanctions imposed by the G7. These products are blended and refined into naphtha, a base compound that is not fit for direct consumption, before being chemically altered and shipped into Nigeria.
Emmanuel claimed that the sulphur level of these products often exceeds 800 parts per million, while octane levels are low. This poor-quality fuel is the reason many Nigerians observe that petrol burns faster than expected and causes frequent engine problems. He referenced a 2020 ECOWAS agreement, which set a harmonised sulphur limit of 50 parts per million for petrol sold within the sub-region, questioning whether imported products meet this standard.
The economist called for an independent, third-party audit involving regulators, external auditors, and industry players to test petroleum products and determine whether they comply with standards stipulated under the PIA. This allegation comes on the heels of recent comments by entrepreneur Aliko Dangote, who accused oil marketers of importing low-quality petrol. Dangote highlighted the quality differences between locally refined fuel and imported products, stating that Nigerians have a choice to buy better-quality fuel at a more affordable price.
The issue of poor petrol quality in Nigeria has significant implications for the country’s economy and environment. The use of low-quality fuel can lead to increased emissions, engine problems, and decreased fuel efficiency. As the Nigerian government continues to grapple with the challenges of the petroleum industry, it is essential to address the issue of poor petrol quality and ensure that imported products meet the required standards.
