The Independent Petroleum Marketers Association of Nigeria (IPMAN), South West, Sunday threatened to stop the lifting of petroleum products in all the region depots over the hike in the fuel pump price by the Federal government.
The South-west Chairman of IPMAN, Dele Tajudeen, who disclosed in a statement made available to journalists in Abeokuta, Ogun state capital described the hike in the pump price by the federal government as unfavourable increment and unfortunate.
Tajudeen while reacting to the new petrol pump price which was announced by the Petroleum Products Pricing Regulatory Agency (PPPRA), said the new price regime of N143.8 came as a surprise.
He said the government increased the depot price from N111.78 to N133.72k, and pump price to N143 without considering marketers’ plights.
He also said the IPMAN executive committee in the zone had resolved to embark on strike if the government failed to look into the issue.
Tajudeen accused the PPPRA of not being consistent in dealing with the stakeholders, stressing that the government ought to have involved marketers and other stakeholders before announcing any increment.
He knocked the PPPRA for announcing new price regime in the pump price of petroleum products without adequate consideration of the welfare of his members.
Tajudeen said, “It is very disheartening to hear that a new price regime is coming to effect, without considering the plight of marketers who bought these products at an expensive price.
“We want to categorically state here that the last time when Federal Government put the price at N145, we still complained that it was inadequate but, now we can describe it as worse.
“In May this year, when the price was cut to N125.00k, many of our members ran into debts as the landing cost and depot price were at a loss, to pay bank loan became a serious issues for us.
“We are still struggling with debts incurred before this increase with nothing to show for it, or how can somebody work with only N2.00 and yet we will pay workers, maintain the loans and also fulfill our obligations to the government.
“Our members had lost close to N100 million as a result of unexpected reduction of pump price in recent times as many were having large volumes of petroleum products in their storage prior to such reductions.
“And while still grasping huge loss, many of which were bank loans the NNPC/ PPPRA again did further monthly reduction.
“In every country where deregulations are in place, government makes room for such a loss by going to stations to know the actual stock of volumes in order to cushion the loss for marketers.
“This is not the case for our IPMAN members except for Private depot owners and Major oil marketers.
“Yet, it is mandatory that we meet the needs of FIRS, pay State taxes, DPR fees, pay Weight and measure fees, pay salaries of our workers, pay Union dues, pay our insurance fees and of course, buy diesel to power generators at our various filling stations.
“So, when we removed all these expenses we are left with almost nothing.”
The South West Chairman of IPMAN also lamented that the government had failed to consider any of its members for palliatives or for compensation for the loses during the lockdown.
“To our surprise, all sectors were assisted, but, none of our members was supported to reduce the losses we incurred. This time around, we will not accept this unfavourable market situation.
“Apart from the federal government, IPMAN is the largest employer of labour in the country and we cannot afford to continue to support the government at this trying time while as businessmen and women, we are operating at loss.
“We hope the Federal Government will see reason and come to the aid of our members as it supported other sectors because our members will not continue to operate at loss.
“Also we will not accept a situation where government will try to paint us black before the public and that is why we are trying to make our positions know now.”
