A recent investigation by Vistanaij Media reveals that following the removal of petrol subsidies, marketers are encountering significant difficulties in acquiring the necessary capital to purchase the product at depots.

Prior to the subsidy removal, the average cost for loading a truck at the depot was N8.1 million. However, with the new pricing structure, this cost has skyrocketed to N21.8 million, representing an increase of over 169 percent.

Marketers are now faced with the daunting task of raising this substantial capital within a short timeframe, which has proven to be an extremely challenging endeavor. Chief Chinedu Ukadike, the Public Relations Officer of the Independent Petroleum Marketers Association (IPMAN), highlighted the dire financial implications this situation poses for independent marketers.

In summary, the elimination of petrol subsidies has placed petrol marketers in a precarious situation, as they grapple with the difficulty of raising the required capital to purchase the product at depots. The substantial increase in prices has created a significant financial burden for independent marketers, making the situation even more dire.

He stated: “We are facing a terrible situation. Our tickets are stuck. The price now is too high. The challenge is that the ones we paid for at the old rate, we were not supplied and now we have a new rate.

“The ex-depot price is now N484 per litre depending on the depot you are loading from, compared to N180 per litre we paid.

“NNPC is the only source of petrol products and we are saying this is wrong. The government must open the sector up. There cannot be deregulation and NNPC would be setting profit margins for the marketers”, he added.

According to Chief Chinedu Ukadike, the Public Relations Officer of the Independent Petroleum Marketers Association (IPMAN), there are a considerable number of outstanding tickets held by independent marketers in various locations. In the Lagos area alone, there are 5,700 tickets that have not been settled. Additionally, there are 600 outstanding tickets in Port Harcourt and 1,200 tickets in Warri, Delta State.

Ukadike emphasized that despite the challenges they are facing, the independent marketers are prepared to participate and compete in the deregulated market. However, he called upon the government to ensure a fair and level playing field for all marketers. This request highlights the need for equal opportunities and support from the government to enable independent marketers to operate successfully in the deregulated market.

“We cannot have only one source of petroleum products and claim that the sector is deregulated. We are ready to compete but the business environment must be the same for every player.”