Oil marketers in Nigeria, operating under the Independent Petroleum Marketers Association of Nigeria (IPMAN), have made an appeal to the Federal Government for tax relief to alleviate their financial struggles in the current harsh economic conditions.
The marketers expressed concerns about the lack of profitability in their oil sector investments, particularly following the removal of the fuel subsidy by President Bola Tinubu.
Hammed Fashola, the Vice President of IPMAN, highlighted the challenging period for marketers, stating that the cost of doing business had significantly increased. He pointed out that the procurement cost for a 45-litre truck of Premium Motor Spirit (PMS) had risen from N7.3 million to around N28 million.
Fashola emphasised that the profit margin for marketers was now practically zero, and they were merely sustaining their filling stations to keep them operational.
While expressing cooperation with the government and acknowledging the support for fuel subsidy removal and total deregulation, Fashola urged the government to reevaluate the situation and propose more viable solutions.
He also noted the challenges faced by IPMAN members who do not receive direct supply from the Nigerian National Petroleum Company Limited, emphasising their dependence on third-party suppliers.
Fashola highlighted the current selling price challenges, with private depots selling at N620–621 per litre for marketers. He explained that considering additional costs such as transportation, salaries, and taxes, marketers were barely breaking even.
Despite the difficulties, Fashola asserted that IPMAN did not regret supporting the removal of the fuel subsidy. He believed that if the government acted sincerely, the funds saved could be utilised for essential infrastructure, education, healthcare, and other beneficial initiatives.
The fuel subsidy removal was announced by President Tinubu on May 29 during his inauguration in Abuja. The Federal Government disclosed last year that it had spent N13 trillion on petrol subsidies between 2005 and 2021.