'To prevent profiteering' -- NUPRC, oil producers agree to supply crude at market price

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reached an agreement with oil producers to supply crude oil to domestic refineries at market prices.

The Nigerian Upstream Petroleum Regulatory Commission has reached an agreement with oil producers to supply crude oil to domestic refineries at market prices.

NUPRC reached the agreement on Wednesday during a meeting with crude oil producers under the aegis of the Oil Producers Trade Section . Speaking during the meeting, Gbenga Komolafe, NUPRC chief executive officer , said the regulator will work to prevent “crude supply profiteering”. Komolafe directed producers and refiners to henceforth provide NUPRC with cargo price quotes on crude supply and delivery for effective monitoring and regulation of transactions.“We need to discuss pricing especially as parties have committed to respecting their domestic crude oil obligation. For us as the regulator, we don’t want the upstream sector to be operated sub-optimally through cost under-recovery,” Komolafe said.

“So, the regulator is very alive to that. In crude pricing, we will never allow price strangulation to disincentivise our domestic refining capacity optimisation.“The regulator does not support cost under-recovery in the upstream sector, and we will continue to work to ensure that crude supply profiteering as a negative factor that can strangulate our domestic refining capacity optimisation is disallowed.

 

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