Oil traders are waiting to hear the price of Dangote Petroleum Refinery’s Premium Motor Spirit, or petrol, as the refinery starts a PMS production test run ahead of its September delivery. According to a Reuters story, the Dangote Petroleum Refinery is testing petrol production; full operation is anticipated to start by mid-September. The publication mentioned a memo from oil sector watchdog IIR Energy that suggested there could be more extensions to the deadline. IIR stated in a note to clients that “it is possible that there could be further extensions,” according to the article.
IIR Energy offers the commodity trading community supply-side, real-time worldwide market knowledge. When our correspondent contacted Anthony Chiejina, the Dangote refinery spokesperson, on Thursday to discuss the situation, he had not yet responded to questions. Members of the Independent Petroleum Marketers Association of Nigeria and the Major Energies Marketers Association of Nigeria, however, stated they were still awaiting word on the cost of the product from the $20 billion project.
The Federal Government’s committee, established to oversee the implementation of crude oil sales to local refineries in naira, signed a deal with the Dangote Petroleum Refinery on 20 August. According to a story published in The PUNCH, the petrol rollout is scheduled for September of this year. According to the report, the Federal Government also revealed that starting on October 1, 2024, crude oil will be sold to Dangote Refinery and other nearby refineries. This was revealed by Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, at a meeting with the Implementation Committee in Abuja.
“The first PMS delivery from Dangote is expected next month under existing agreements,” stated the chairman of the Technical Sub-Committee and Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, who were also present at the meeting. In response to a query on whether or not marketers were aware of the price of PMS from the refinery, Mustapha Zarma, the National Operations Controller of IPMAN, stated that oil dealers were still awaiting the price of a litre of gasoline from the refinery. There isn’t a price yet. The price will be disclosed when the product is made available. However, the plants are currently being tested, Zarma said.
He emphasised that the pump price of PMS is currently less than the actual market price, but he also pointed out that oil marketers might not be able to purchase petrol from the Dangote refinery if the cost equals the true market price.