We Are Losing Over N10bn – Oil Marketers
The Petroleum Product Retail Outlet Owners Association of Nigeria has said its members across the country are losing over N10bn following the slash of fuel pump price of Premium Motor Spirit known as petrol by the Federal Government.
The government had recently announced the reduction of fuel pump price from N145 per litre to N125 per litre.
Speaking with journalists, the President, PETROAN, Billy Harry who is also the National Vice- President, Nigeria Chamber of Commerce, Industry, Mines and Agriculture , said in Rivers State alone, the marketers were losing about N300m as a result of sudden change.
Giving the breakdown, he said: “As of the time government made the announcement, many of us just bought new product at the old price. For instance we bought this product at N133.28k per litre and to be sold at N145 litre. But now government said we should sell at N125 per litre . We are losing about N20 on each litre.
“Now in Rivers alone , the statistics we have at the moment say that about 15 million litres have been bought at the old price. Now when you multiply that by N20 loss, that gives us about N300m loss.
“Now, marketers across the country are buying nothing less than 500million litres at a go. So you can imagine how much we will lose with this sudden change.”
Harry called on the Federal Government to come up with palliative measures to support its members who might incur losses due to the sudden reduction in fuel pump price.
He said the union found it necessary to make the request in view of the fact that 95 per cent of its members who had old stock of the commodity would incur a huge loss following the reduction of the fuel pump price.
“Even though we are happy with the new development and the Federal Government should be commended for the gesture, the government should consider the fact that many of our members with old stocks will incur a huge loss,” he said.
According to him, the palliatives would go a long way in reducing the loss the marketers will incur since most of them had the old stock which were supposed to be disposed at N145 per litre in order to recover their money.
He said, “Even before the announcement, many of our members had already bought and loaded their vehicles with the product at old prices from Lagos, Port Harcourt and Warri.
“So by the time they reach their various destinations, they must sell the product at N125 per litre instead of N145 per litre which means they will have to incur some losses as there will be a margin of N20,” Harry said.
He expressed hope that the Federal Government would come to their aid as it had promised to support private depots.