The Federal Government is considering two proposals to ease crude oil offtake by domestic refiners as it moves to address pricing and logistics challenges that have continued to constrain access to locally produced crude.
The proposals, according to the Crude Oil Refinery-owners Association of Nigeria, include allowing producers to deliver crude directly to nearby refineries and granting refiners a discount for transportation and handling costs embedded in the price of crude. This was disclosed in a report by Reuters on Wednesday.
The PUNCH also gathered that the proposals are expected to come up for discussion at the next monthly meeting between the government, through the Nigerian Upstream Petroleum Regulatory Commission, domestic refiners and crude oil producers, where stakeholders will review measures to ease domestic crude offtake and reduce feedstock costs.
The report read, “The Federal Government is considering changes to crude allocation and pricing rules to improve feedstock access for its refiners, including Dangote Refinery.”
The review comes as compliance with the domestic crude supply framework improved sharply in the second quarter of 2026, although refiners continue to complain that the cost and structure of domestic crude transactions make locally sourced feedstock expensive.
