The Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) has said its members across the country are losing over N10 billion following the slash on fuel pump price by the Federal Government.
Speaking with journalists, the President, PETROAN, Prince Billy Harry, who is also the National Vice President, Nigeria Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), said in Rivers alone, the marketers were losing about N300 million as a result of the sudden change.
The Federal Government last week announced the reduction of fuel pump price from N145 per litre to N125 per litre.
Given the breakdown, Harry said: “As at the time government made this announcement, many of us just bought new product at the old price. For instance, we bought this product at N133.28k per litre and to be sold at N145 litre. But now government said we should sell at N125 per litre. We are losing about N20 on each litre.
“Now in Rivers alone, the statistics we have at the moment says that about 15 million litres have been bought at the old rate. Now when you multiply that by N20 loss, that gives us about N300 million loss. Now, marketers across the country are buying nothing less than 500million litres at a go. So you can imagine how much we will lose with this sudden change.”
Harry called on the Federal Government to come up with palliative measures to support its members, who may incur losses due to the sudden reduction in fuel pump price.
He said the union found it necessary to make the request in view of the fact that 95 per cent of its members, who have old stocks of the commodity, would incur a huge loss following the reduction of the fuel pump price.
“Even though we are happy with the new development and the Federal Government should be commended for the gesture, but the government should consider the fact that many of our members with old stocks will incur a huge loss,” he noted.
According to him, the palliative measures would go a along way in reducing the loss the marketers will incur since most of them have the old stocks, which were supposed to be disposed at the N145 per litre in order to recover their money.