The Independent Petroleum Marketers Association of Nigeria (IPMAN) yesterday shed light on why reduction of the Premium Motor Spirit PMS (petrol) prices usually unsettles the marketers.
Speaking with The Nation on phone, it National Public Relations Officer, Chief Chinedu Ukadike, said any clash in petrol price usually affect the calculated expectations of the marketers, who operate with credit facilities.
According to him, any downward adjustment of prices usually affects both capital and profit.
His words: “The challenge in the market is this fluctuation of prices. Marketers are always finding it difficult when the prices go down beyond their expectations because they borrowed Bank money. Since they borrowed bank money any minus different from what they have in their loans will definitely affect both their capital and profit.”
Only this year, the major supplier of the product to the Nigerian market, Dangote Refinery, has crashed petrol prices twice.
The Nation had last month reported that IPMAN National President Alhaji Abubakar Maigandi explaining the mechanism of unannounced price fall that has now permeated the market.
He explained that the downward reviews came while some marketers were just lifting their products from the refinery at the old price.
Read Also: Nigerians must look beyond short-term hardship -DOJ
With such adjustment, according to Maigandi, the marketers are usually at a fix about what to do with their consignments since hoarding it affects their capital and profit.
Besides, he said for fear that the prices are likely to plument further, they grudgingly dispense their stock at losses.
Bu Ukadike however noted that the citizenry are clamouring for more lower petrol prices, noting he would appreciate whatever would result in further price reduction.
“Nigerians want more reduction. If there is anything they will do to ensure a good price which will navigate the market, I will appreciate it,” said Ukadike.
The IPMAN spokesman described the 2023 removal of subsidy as the best development in the oil and gas industry.
He said, “In the oil and gas industry we are not doing badly. I believe that this subsidy removal is the best thing for the oil and gas market.”