Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that oil marketers may soon run out of business due to diminishing profit margin and rising cost of operation.
The marketers lamented that the uncoordinated manner in which government’s deregulation policy was being implemented has left them without resources to run their operations.
While speaking to journalists in Abuja, the National Publicity Officer of IPMAN, Ukadike Chinedu, disclosed that the N6.49/ litre margin was no longer sufficient as oil marketers would end up spending close N211.11 per litre of petrol as against the previous cost of N144.44 per litre.
He said, “Let me tell you that we have become service-oriented companies we are no longer talking about profit, we are just trying to stay in business. Unfortunately, the government is not thinking about the continuity of marketers in business.
“I also want to make it clear that in the latest pricing template released by the PPPRA which they have just reversed, you will see that the margin they gave to marketers is N6.49 per litre and if we are buying about 45,000 litre we spend close to N9.5 million.
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“The same volume we use to buy for about N6.5 million or there about with the same profit margin of N6.49, the implication is that while the cost of purchase is increasing by the day, the government still expect marketers to sell the product at the same profit margin even when we know that the cost of operating the business continues to increase.
“What this simply means is that independent marketers may soon go out of business because as it is now, it takes one close to a N100 million to bring products to a station and the margin of gain is so small and considering interest rates from the banks, it is obvious that marketers may go under very soon.”
