The Federal Government and crude oil producers in Nigeria have agreed to working towards a sustainable supply of crude oil to local refineries under a competitive pricing system.

Both parties said the aim of the commitment was to ensure that while the operators (crude oil producers) do business optimally, while the refineries are not starved of crude.

Accordingly, the industry regulator, the Nigeria Upstream Petroleum Regulatory Commission has directed oil refiners in the country to provide monthly price quote on crude supply.

This came as the $20bn Dangote Petroleum Refinery has resorted to importation of crude from the United States of America and other Countries.

In a statement issued in Abuja on Thursday, Nigeria’s upstream regulator stated that oil producers under the umbrella of the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry, at a meeting called by NUPRC, agreed to concede to a framework that would be mutually beneficial with the aim of ensuring that local refineries are not strangulated due to off-the-curve prices.

“The focus of the meeting held at the instance of the Commission Chief Executive, Gbenga Komolafe, was on the status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template.

“It was part of efforts to effectively implement key sections of the Petroleum Industry Act (PIA) 2021, especially the issue of pricing and crude supply to the domestic refineries,” the commission stated.