Business & Strategy

Marketers Await Petrol from Dangote Refinery, Pricing Still Undecided

Written by Jerry Alomatu on July 16, 2024

News Views: 342

Oil marketers are eagerly anticipating the release of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery. However, they disclosed that no pricing agreement has been reached between the refinery managers and petrol retailers.

On Sunday, it was reported that the Dangote refinery delayed the date for the supply of petrol to August, shifting it from the previously announced July. The President and Chief Executive Officer of Dangote Industries Limited, Alhaji Aliko Dangote, stated that the refinery is set to commence petrol production in August 2024, after resolving crude oil supply issues with the assistance of the Nigerian National Petroleum Company Limited and the Federal Government.

Responding to this development, representatives from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) mentioned that the shift in the supply date was not unexpected.

The marketers expressed their readiness to lift products from the refinery but noted that the price of the commodity has not been disclosed yet by the refinery management.

IPMAN President Abubakar Maigandi commented on the matter, saying, “Yes, July was announced before, but the new date is now August. We don’t have a problem with that. The most important thing is for the refinery to start rolling out PMS. Maybe they have a challenge and can’t meet the July target. However, we the oil marketers have already prepared ourselves and immediately he (Dangote) starts releasing the product we are going to load.”

When asked about any agreement on the price of petrol from the refinery, Maigandi replied, “Up till now we are waiting for him to give us the price. But as I speak to you, there is no price for the PMS being produced by that refinery. So we are waiting. However, when he starts releasing the product, the price must come out. But up till now there is no price.”

Maigandi reiterated that independent oil marketers are ready to lift products as soon as they become available, stating, “We are just waiting for him to start. We have already informed all our members nationwide to start loading when he begins. We are ready to patronize him.”

PETROAN President Billy Gillis-Harry also stated that the shift in the date from July to August did not surprise his group. “I said initially that the July date would not work considering the many processes involved. Also, on whether August would be feasible, I’ll say that they have their system and they’ll decide that,” he stated.

Gillis-Harry further mentioned that the refinery management has yet to disclose the expected price for a litre of petrol. “He has not discussed PMS pricing with us. But yesterday I was talking to a team from there, and we hope to know the price in due course,” he added.