By Seun Ibiyemi
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns over the worsening state of its members’ businesses, following a sharp increase in petrol pump prices driven by escalating tensions in the Middle East.
Marketers say the rising cost of Premium Motor Spirit (PMS) has significantly increased their operating expenses, while returns continue to shrink, putting many operators under severe financial strain.
According to IPMAN’s National Publicity Secretary, Chinedu Ukadike, the cost of procuring petroleum products has surged drastically, forcing marketers to rely heavily on bank loans with high interest rates.
“This is a product we were getting with around N50 million, now we are getting it with more than N60 million or N70 million per truck, and the bank will bill us. All those loans we collect from banks, the interest rate is high,” Ukadike said.
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He added that despite the increased capital outlay, profit margins have continued to decline, leaving marketers struggling to sustain operations.
“The turnover, the financial and cash value turnover is higher and the dividends are low. There is no stability, and up till now, we are still borrowing from banks to be able to meet demand and supply,” he noted.
The association also highlighted a sharp drop in demand for petroleum products, as consumers cut back on purchases due to rising prices.
According to marketers, customers who previously bought between 10,000 and 20,000 litres now purchase as little as 1,000 to 2,000 litres.
Industry data shows that petrol prices have jumped from an average of N839 per litre to over N1,230 per litre in recent weeks, reflecting volatility in Nigeria’s downstream petroleum sector.
The spike has been linked to rising global crude oil prices, which have climbed above $104 per barrel amid escalating geopolitical tensions involving the United States, Iran, and Israel.
IPMAN warned that the current trend could further destabilise the downstream sector if urgent measures are not taken to address price volatility, ease access to financing, and stabilise supply.
The association called for policy interventions to cushion the impact on marketers and consumers, warning that sustained pressure could lead to reduced supply and broader economic consequences.
