The number of operators in
the downstream oil sector
has continued to thin out out
since the commencement of
the partial deregulation of
the industry, a development
that led to an increase in the
pump price of petrol, The
Punch reports.
It was learnt on Saturday
that petroleum product
marketers, particularly
independent dealers, were
gradually pulling out of the
petrol sale business across
the country as a result of
the high cost currently
required to run the business.
The high business operating
cost, according to marketers,
is occasioned by the recent
hike in the pump price of the
Premium Motor Spirit,
popularly called petrol, by
the Federal Government and
the complete removal of the
fuel subsidy. In addition to
this is the reduction in
consumption of the product
by members of the public.
Government officials,
experts and oil marketers
such as the Corporate
Affairs Manager, Nipco Plc,
Mr. Taofeeq Lawal said the
capital outlay currently
required to effectively
operate in the downstream
oil sector had virtually
doubled. They also explained
that the instability in the
foreign exchange market had
adversely affected the
finances of many oil dealers,
adding that a number of
marketers were finding it
tough to repay the loans
obtained from banks, not to
talk of garnering additional
funds to pay for the PMS at
its new rate.

modath:


This is both funny and sad at the same time..

Sad that some people's income stream has been cut off.

Funny cos it shows they had no business being in that business (pun intended)

shukuokukobambi:


Abeg don't pity them jare. Its time for their own comeuppance. When they were buying for N87 and selling at N350/ltr, did they call us to share in their testimony?

Who dem epp?

ibotjaycob:


If its going out of business is going to help Nigeria grow, then, good riddance.

shukuokukobambi:


Abeg don't pity them jare. Its time for their own comeuppance. When they were buying for N87 and selling at N350/ltr, did they call us to share in their testimony?

I see them on my street begging us to come buy but most of us prefer to go to those like BOVAS who stood by the masses during the days of the locusts and refused to sell above N87 despite all odds.

Who dem epp?

SeverusSnape:
Change - sending business men out of business since 29 May 2015.

modath:


Oti oo, pity ke? Ko jo..I wasn't pitying them like that ojare, most of them are destructive saboteurs!! I just felt some type of way for their employees & dependants, dazall...

That Bovas is heaven sent, I see the name everywhere..it's Ibadan abi?

shukuokukobambi:


I understand u. even, cocaine cartels have employees and dependents

Yes Bovas is truly heaven sent and they're in Ibadan

shukuokukobambi:


I understand u. even, cocaine cartels have employees and dependents

Yes Bovas is truly heaven sent and they're in Ibadan

lustychima:
the issue is there is no clear profit margin, imagine buying @ 139-140 @ depot after loading and landing cost, the cost price becomes 142-143.....the marketer is now left with 2naira as profit which can't even take care of running cost.....that's d reason for moving out of business......I fink d depot price should b worked on cos this may only lead to a preposterous end

modath:



You do know this is incorrect? If you want to counter however, kindly provide evidence...


*Subsidy made it an all comers, without that incentive, the pretenders are returning home*