-Deborah Akinyosoye
Amid skyrocketing fuel prices, petrol marketers across Nigeria have reported a sharp decline in patronage, leaving filling stations desolate and significantly impacting operations.
With the price of petrol now above ₦1,000 per litre in most regions, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) are calling on the federal government to provide critical financial intervention to help the industry stay afloat.
During an appearance on Channels Television’s The Morning Brief on Monday, PETROAN’s National President, Billy Gillis-Harry, painted a grim picture of the sector’s current challenges.
“We used to buy 45,000 litres of fuel for less than ₦8.5 million just a few months ago. Today, that same volume costs around ₦49 million,” Gillis-Harry explained.
“With financial institutions unable to offer relief, and interest rates soaring, it’s become nearly impossible to sustain operations. Nigerians, too, are struggling with their purchasing power, which has further dampened sales.”
Gillis-Harry noted that the mounting operational costs are forcing petrol retailers to slash their workforce and reduce work shifts as profit margins continue to shrink.
He underscored that without immediate government support, many outlets may face closures, aggravating Nigeria’s economic crisis.
Ukadike Chinedu, a spokesperson for IPMAN, echoed Gillis-Harry’s sentiments, describing the desolation of filling stations nationwide.
“Filling stations have become ghost towns. Middle-class Nigerians have largely abandoned their vehicles, opting for public transport instead,” Chinedu stated.
“With investment capital sourced primarily from banks at high interest rates, there’s simply no return on investment. Today, instead of seeing queues, stations are often deserted, with only a handful of vehicles stopping by to refuel.”
Both associations have called on President Bola Tinubu to introduce a ₦100 billion seed fund for oil marketers to keep the industry viable, similar to government financial support extended to the aviation and agricultural sectors.
Nigerians are currently enduring one of the most challenging economic periods in recent history.
Since the removal of the petrol subsidy and the unification of foreign exchange rates under the Tinubu administration, living costs have surged, with energy prices quadrupling in the last year.
The price per litre of petrol, which was under ₦200 before the reforms, has now climbed past ₦1,000, leading many to question the effectiveness of the government’s economic policies.