With petrol prices now exceeding ₦1,000 per litre across most Nigerian filling stations, fuel marketers nationwide are grappling with low patronage at their outlets. This significant price hike has forced many to reduce workforce hours and streamline operations, citing high costs and diminishing returns as primary challenges.
During a recent interview on Channels Television’s The Morning Brief, Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed concern over the industry’s financial strain. “Retailers are struggling to manage the situation.
A few months ago, 45,000 litres of fuel cost us less than 8.5 million naira, but now we’re spending around 49 million naira for the same amount,” he explained. He also highlighted how high borrowing costs are compounding the issue, noting that Nigerians’ reduced purchasing power has impacted station sales significantly.
Ukadike Chinedu, a spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), shared a similar perspective, pointing out that many filling stations now look deserted as middle-income Nigerians increasingly abandon private vehicles for public transport. “Investments in fuel retail are mostly funded through loans, with high-interest rates.
With low sales volumes, the anticipated returns on investment are barely realized,” Chinedu stated. He described how stations now see minimal traffic, with only a few cars stopping by, indicating a shift from concerns over fuel scarcity to the stark reality of price-driven patronage decline.
Both PETROAN and IPMAN have urged President Bola Tinubu to establish a ₦100 billion support fund to stabilize the industry, similar to relief provided for the aviation and agricultural sectors. With Nigerians facing severe inflation and a surge in energy costs since the removal of the fuel subsidy and the unification of exchange rates, widespread discontent has led to public protests demanding policy reversals. However, the Tinubu administration remains firm, maintaining that its economic reforms, though challenging, are essential for long-term stability.
