The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed significant challenges faced by its members in purchasing petrol following the removal of fuel subsidy by President Bola Tinubu.

Surajudeen Bada, a National Ex-officio of IPMAN and former Chairman of the association in Ogun State, discussed these difficulties in an interview with The PUNCH.InformationGuideNigeria

Bada explained that, due to the financial strain imposed by the subsidy removal, individual oil marketers are now pooling resources to buy a 45,000-litre tanker of petrol, which they then share among themselves. This collective approach has become necessary because single marketers are unable to afford the cost of a full tanker on their own.

Before the subsidy was removed on May 29, 2023, a 45,000-litre tanker of petrol cost below N9 million. However, following President Tinubu’s announcement ending the petrol subsidy regime during his inaugural speech, the situation has drastically changed.JAMB Result

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The removal of the subsidy led to a sharp increase in petrol prices. The pump price of petrol soared from about N180 per litre to N537 per litre, and then further increased to N617 per litre on July 17. Consequently, the cost of a 45,000-litre truck of petrol has now escalated to N27 million, a price point beyond the reach of many marketers.

Bada, who also serves as the chairman of the Oil and Gas Traders Association in Ogun State, expressed that the current government policies are adversely affecting petroleum marketers.NYSC Portal

“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 N8m, not up to N9m. But the same quantity is being procured today at above N27m. You can see the difference. So, many of our marketers, who do not have the N27m 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.JAMB Portal

“We contribute money to buy just one truck because someone that has N9m 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.”