The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed that its members are grappling with challenges due to their inability to afford the purchase of 45,000 litres of petrol. The difficulty, according to IPMAN, stems from the removal 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, disclosed that oil marketers are currently pooling funds to collectively buy and share 45,000 litres of petrol among themselves.
Bada attributed the incapacity of individual marketers to procure a full truck of petrol to the removal of the subsidy, stating that before May 29, 2023, a 45,000-litre tanker of petrol used to cost below N9 million.
President Bola Tinubu had, during his inaugural speech on May 29, 2023, announced the end of the petrol subsidy regime. Subsequently, pump prices skyrocketed from approximately N180 per litre to N537 per litre before further jumping to N617 per litre on July 17.
According to Bada, the current cost of a 45,000-litre truck of petrol has surged to N27 million, a significant increase from the previous N9 million. This drastic rise has left many marketers incapable of affording the working capital needed.
Bada, who also serves as the chairman of the Oil and Gas Traders Association in Ogun State, emphasized that government policies are adversely affecting marketers. He pointed out that the steep increase in the cost of procuring petrol has forced them to share the product among one another to ensure its availability in various stations.
The collaborative approach involves several marketers contributing funds to purchase one truck, as the capital required for an individual marketer to buy half of a truck has become unattainable. The collective effort helps maintain some level of business activity while facing the challenges posed by the removal of the subsidy.
