Oil marketers are awaiting the price of Premium Motor Spirit, popularly called petrol, being produced by the Dangote Petroleum Refinery as the plant begins a production test-run of PMS before it is released in September.

A report by Reuters stated that the Dangote Petroleum Refinery is undergoing test runs for petrol production, with full operation expected to commence by mid-September.

Citing a note by IIR Energy, an oil industry monitor, the publication said the date could be extended further.

According to the report, IIR said in a note to clients that “it is possible that there could be further extensions”.

IIR Energy provides real-time, supply-side global market intelligence for the commodity trading community.

The spokesperson of Dangote refinery, Anthony Chiejina, had yet to respond to enquiries when contacted by our correspondent on Thursday to speak on the matter.

Meanwhile, members of the Major Energies Marketers Association of Nigeria and their counterparts in the Independent Petroleum Marketers Association of Nigeria said they were still awaiting the price of the product from the $20bn plant.

On August 20, The PUNCH reported that the Federal Government’s committee which was set up to ensure the implementation of crude oil sales to local refineries in naira had reached an agreement with the Dangote Petroleum Refinery for the rollout of petrol in September this year.

The report stated that the Federal Government also disclosed that the sale of crude oil to Dangote Refinery and other local refineries will commence on October 1, 2024.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this during a meeting with the Implementation Committee in Abuja.

Also at the meeting, the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee reported that “The first PMS delivery from Dangote is expected next month under existing agreements.”

When contacted and asked whether the price of PMS from the refinery had been made known to marketers, the National Operations Controller of IPMAN, Mustapha Zarma, said oil dealers were still waiting for the cost of a litre of petrol from the refinery.

“There is no cost yet. When the product is available, they will release the cost. But they are test-running the plants now,” Zarma stated.

He, however, pointed out that oil marketers may not be able to buy petrol from Dangote refinery if the cost is the actual market price, stressing that the pump price of PMS is currently lower than the actual market price.

As we pray and hope on one hand that the project is successful, on the other hand until the product is released into the market, I assume this is just noisemaking

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