10,000 Fuel Marketers Face Shutdown Amidst Plummeting Sales and Rising Costs.

Nigeria’s fuel consumption has drastically declined due to skyrocketing prices, raising concerns among oil marketers facing substantial losses.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority indicates a staggering 92% drop in fuel consumption, plummeting from 60 million liters per day in May 2023 to just 4.5 million liters per day in August 2024.

• Only 16 out of Nigeria’s 36 states received fuel from the Nigerian National Petroleum Company Limited in August, worsening the widespread shortages.

• President Bola Tinubu’s removal of fuel subsidies in May 2023 resulted in a 488% surge in petrol prices, escalating from N175 to over N1,000 by October 2024.

• The consequences of the price hikes are severe, with transport costs skyrocketing, inflation intensifying, and struggling Nigerians facing significant hardship. Many motorists have abandoned their vehicles in favor of public transportation.

• The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) reports massive losses, with approximately 10,000 members on the verge of shutdown. Dr. Joseph Obele, PETROAN National Public Relations Officer, stated, “Three days ago, at our national headquarters meeting, indications showed about 10,000 members would quit business within 45 days due to severely affected trading capital.”

• Affected marketers employ around one million staff, and PETROAN has requested a N100 billion grant to prevent these shutdowns. Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria, confirmed the reduced fuel consumption and the struggles of union members.

• Afolabi Olawale, Secretary-General of the Nigeria Union of Petroleum and Natural Gas Workers, stated, “There is a drop in consumption and the price of a truckload is higher now. So, we have reduced the quantity of fuel we buy.”
• He highlighted the impact on employment, saying, “The economy isn’t smiling. Many petrol station owners can’t buy a single truckload, affecting our members. Petrol stations have closed and our members have lost jobs.”