Nigeria may experience shortage in the supply of premium motor spirit (PMS) also known as petrol in the coming weeks as private marketers complained of bankruptcy arising from poor profit margin and in some cases no profit after sales.
Major Oil Marketers Association of Nigeria (MOMAN) confirmed that most of its members had completely abandoned importation of petrol.
About N1.5 trillion under-recovery was incurred by the Nigerian National Petroleum Corporation (NNPC), the sole importer of petrol into Nigeria for the major part of 2019 as a result of the inconsistency of the local refineries and volatility in the market.
The Executive Secretary of MOMAN, Clement Isong, maintained in a chat on the side-line of an event organised by OVH Energy in Lagos, that the profit margin of marketers had dipped and become a source of worry for his group who now depend solely on NNPC for supply.
While declaring that a business without profit, is not a business, he said “We have the cause to believe that there is light at the end of the tunnel on the issue of subsidy debts we are being owed. But the major issue we are being confronted with is the poor profit margin,” he said.
Alhaji Ishaq Bakare, an independent marketer, at the weekend told a newspaper that the margin had crashed to zero.
“All of us are now at the mercy of NNPC for the product (PMS). All margins disappear the moment we pay for haulage, pay for running of generators to power the station, pay salaries to the attendants.
“Many of the marketers, as we speak, are at the mercy of banks and other lenders. Most of our business concerns are slipping into bankruptcy,” he declared.
The inefficient management of the downstream market is also affecting the country, Bakare said.