The Independent Petroleum Marketers Association of Nigeria has indicated that its members are unable to afford the purchase of 45,000 litres of petrol following the elimination of the fuel subsidy by President Bola Tinubu.
In an interview with The PUNCH, Surajudeen Bada, a National Ex-officio of IPMAN and former Chairman of the association in Ogun State, revealed that oil marketers now pool funds to buy 45,000 litres of petrol, which they subsequently distribute among themselves.
Bada attributed the challenge of individual marketers in procuring a truckload of petrol to the removal of the subsidy on the fuel. He highlighted that before May 29, 2023, a 45,000-litre tanker of petrol used to cost below N9 million.
President Bola Tinubu announced the end of the petrol subsidy regime in his inaugural speech on May 29, 2023. Subsequently, pump prices of petrol surged from around N180 per litre to N537 per litre before further increasing to N617 per litre on July 17.
Bada explained that a 45,000-litre truck of petrol that previously sold for N9 million now costs N27 million, making it unaffordable for many marketers. He, therefore, emphasized that government policies were adversely affecting the marketers.
“Government policies are affecting us negatively. As of May 2023, before the commencement of this administration, a 45,000-litre truck of petrol was being procured from the depot at above N8 million, not up to N9 million. But the same quantity is being procured today at above N27 million. You can see the difference. So, many of our marketers, who do not have the N27 million working capital, are now out of business.
“What we now do is to share the product among one another. Normally, a petrol station is entitled to a truck, but we now take a full truck to about three stations. We share among ourselves so that, at least, the people will see that we are selling and the product is available in town.
“We contribute money to buy just one truck because someone that has N9 million and was running his business before can no longer buy half of a truck with that amount. So, two to three people now come together to do that.”