THE Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the hike in the price of products due to the abrupt removal of subsidies was threatening the survival of their businesses.
The chairman of IPMAN, Enugu Depot Community, Chinedu Anyaso, said average sales had dropped by about 50 per cent from May 30 to date.
Anyaso, whose depot serves Anambra, Ebonyi and Enugu states, said marketers were facing an existential challenge of low profits as a result of reduced sales and it was affecting their abilities to meet their operational cost and obligation with banks.
He said if the negative development was not urgently challenged, many operators would shut down, adding that it would result in the collapse of the downstream sector and the loss of numerous jobs.
According to him, marketers are worse affected by this policy of subsidy removal, as profitability has reduced because average sales have reduced by about 50 per cent.
“Most marketers are finding it difficult to remain in business because increasing cost of operation, payment of workers and meeting bank obligations is becoming difficult.
“We appeal to the federal government to save downstream operations from collapsing by working on reduction in pump prices,” he said.
The News Agency of Nigeria (NAN) reports that petrol now sells for between ₦630 and ₦640 in Awka, the capital of Anambra and its environment. (NAN)
