The Independent Petroleum Marketers Association of Nigeria (IPMAN), has said that oil marketers have lost the patronage of petrol users by about 50 per cent since the subsidy on Premium Motor Spirit (PMS), otherwise called petrol or fuel was withdrawn. It explained that this was so because petrol consumption in Nigeria has been reduced by about 50 per cent….CONTINUE READING...CONTINUE READING
IPMAN National Operations Controller, Mr. Mike Osatuyi, in an interview with Saturday Telegraph, yesterday, also said many oil marketers can no longer buy even a truck of petrol as it has become exorbitant. He explained that before the petrol subsidy removal, they were buying a truck of petrol for N7.7 million but now, a truck costs them N23 million, including transport.
He also said smuggling of petrol from Nigeria to neighbouring countries has reduced by about 90 per cent. Osatuyi said: “It has reduced our sales by 50 per cent nationwide. Many peo- ple are no longer using their vehicles. We have no choice. “You can see that there is no more traffic congestion on the roads. Many people have reduced their consumption of petrol. Everything has gone up.
“Sales went down because the purchasing power of individuals has reduced. How many people can afford 20 litres of petrol at once? “Many people are no longer using their cars and some have also reduced their movement. You cannot just use your car anyhow now. “You cannot just say you want to drive a far distance to greet somebody. People only go out for very important things that can bring in money.
“Before we were buying a truck for N7.7m but now we are paying N23m including transport. How many oil marketers can afford N23m per truck? Where will you raise the money? “It is either you come down and buy a small quantity. Some of my members now buy 200 litres. Not many marketers can afford a truck anymore.
Deregulation or subsidy removal is affecting our business in terms of how much we pay to buy a truck of petrol and also in terms of patronage from petrol users. It has really come down but it is okay. “There is also no more smuggling anymore because smuggling is no more attractive. People from other countries are even protesting Nigeria’s removal of the subsidy….CONTINUE READING
