The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns over the affordability of purchasing petrol trucks by its members following the removal of the fuel subsidy by President Bola Tinubu.
Surajudeen Bada, a National Ex-officio of IPMAN and former Chairman in Ogun State, revealed in an interview that individual oil marketers are now pooling resources to buy and share 45,000 litres of petrol, a practice attributed to the subsidy removal.
Bada explained that before May 29, 2023, a 45,000-litre tanker of petrol cost below N9 million. However, since the removal of the subsidy, the same quantity now costs N27 million, making it financially challenging for many marketers.
President Bola Tinubu had announced the end of the petrol subsidy regime on May 29, 2023, leading to a significant surge in pump prices from about N180/litre to N537/litre, eventually reaching N617/litre on July 17.
Bada, who also serves as the chairman of Oil and Gas Traders Association in Ogun State, voiced concerns about the negative impact of government policies on marketers. He emphasized that the increased cost of procuring petrol trucks has forced many marketers out of business.
In response to the financial constraints, Bada stated that marketers are now adopting a collaborative approach, contributing money collectively to purchase a single truck, which is then shared among multiple petrol stations.
The situation underscores the economic challenges faced by petroleum marketers as they navigate the repercussions of the subsidy removal and adapt their business practices to cope with the increased cost of procuring fuel.
