Petrol Marketers Finally Find Solution to Fuel Price Hike, Make Important Request From Tinubu
- Petroleum Product Retail Outlet Owners Association requested that Tinubu grant N100 billion in loan
- This is to help members adjust to the reality after fuel subsidies were removed causing a blow to businesses
- According to marketers, if the federal government did not help them, 10,000 marketers might close their outlets
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian Petroleum Product Retail Outlet Owners Association has made it clear that the N100 billion grant it asked President Bola Tinubu for is a loan, not free money.
Source: Getty Images
PETROAN had recently requested that Tinubu grant N100 billion to assist its members in adjusting to the consequences of the elimination of fuel subsidies.
After the Federal Government completely deregulated the downstream industry in October 2024, marketers reported that the average cost of lifting a 33,000 truck increased from N7 million in May 2023 to N30 million.
According to reports, some marketers were consequently forced out of business because they could not cover the expenses, BusinessDay reported.
Additionally, it was discovered that certain stores now help pay for the purchase of a single truck of premium motor spirit, which they then distribute to their filling stations.
10,000 marketers could close down
Billy Gillis-Harry, the president of PETROAN, stated in a paper sent to our correspondent that 10,000 marketers could shut down their stores if the federal government did not assist them.
He said,
“PETROAN requests a grant of N100bn from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses.
“The request is in response to the threat of job losses that would result from the removal of the fuel subsidy.”
Speaking during an interview with our correspondent, Gillis-Harry explained that the association was not seeking free money, but it wanted the fund to be kept in an energy bank where its members could access loans.
“We didn’t say they should give us free money. We said, ‘Put it in the energy bank and give it to us as a single-digit interest loan.’ With that, the fuel price will come down.
“That we are asking for free money? No! We are only saying that the government should put the grant in Nigeria’s energy bank. Set up the energy bank of Nigeria and put the N100bn there as seed capital. N100bn is nothing, but it’s going to change the content of the business.”
In a similar vein, Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, requested that a unique bank, similar to the soon-to-be Africa Energy Bank, be established to handle the issues of marketers who require loans.
He said,
“In IPMAN, we have been soliciting for a situation whereby we have a bank of oil and gas, like we have the Bank of Industry. If we have a bank of oil and gas, it will be able to understand our language and understand the dynamic in the business. No marketer can go to the Bank of Industry and get anything because it’s not made for us.
Petrol price reduction looms
Legit.ng reported that the sales Purchase Agreements (SPAs) will be signed with a few refineries today by the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).
The agreement would be inked in Port Harcourt, Rivers State, the association notified the parties.
Previously, Dangote Refinery and MRS signed a deal for the distribution of gasoline through their retail locations nationwide at a price of N935 per liter.
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Source: Legit.ng
