Business
Oil Marketers Request N100 Billion to Avoid Business Shutdowns
The oil markets have sent a letter to the President, dated October 21, seeking a grant of N100 billion to help prevent the imminent closure of businesses for about 10,000 marketers facing significant financial distress.
This appeal is due to the dire situation that many in the oil industry find themselves in during these challenging economic conditions.
Dr Joseph Obele, the National Public Relations Officer for the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), expresses concerns regarding the skyrocketing costs within the sector.
He noted that the price of a truckload of Premium Motor Spirit (PMS) has skyrocketed from N7 million to an astonishing N47 million over the past 16 months.
This drastic increase has severely strained the financial viability of many marketers.
In a recent meeting held at PETROAN’s national headquarters, Dr. Obele revealed troubling projections that around 10,000 members may be forced to exit the business within the next 45 days due to expensive trading conditions.
He stated, “Our letter to the President reflects the urgent need for assistance.
The continuous rise in operational costs has made it nearly impossible for our members to sustain their businesses.
Without support, we fear many will be unable to keep their doors open much longer.”
Adding to the gravity of the situation, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged the concerning decline in fuel consumption affecting the industry.
He noted that the increased costs have compelled marketers to reduce their fuel purchases. “Previously, if someone bought 10 truckloads of fuel, they are now only able to afford eight.
This reduction means that we are not receiving the quantities needed to meet demand, and we are left selling only limited amounts,” Maigandi explained.
Also, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has raised alarms about the fallout from oil marketers’ inability to secure fuel supplies.
Mr Afolabi Olawale, the Secretary-General of NUPENG, painted a grim picture of the consequences faced by workers in the industry.
“The economic climate is bleak for many in this sector.
Numerous petrol station owners find it challenging to purchase even a single truckload of fuel, directly impacting our members,” he stated.
“Truck drivers struggle to find loads to transport, and many petrol stations have closed their doors, resulting in widespread job losses for station workers.”
The situation continues to evolve, and while Mr. Olawale noted that precise figures regarding the number of affected individuals remain elusive, he emphasized that the crisis affects both the formal and informal sectors of the economy.
“Everyone is feeling the impact, but those in the downstream sector, including truck drivers and petrol station workers, are facing the huge impact of these challenges,” he remarked.
Business
PETROAN and Dangote Refinery Team Up to Improve Gas and Fuel Distribution
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has emphasized the importance of issuing gas distribution licenses to petroleum marketers as a key step in reshaping Nigeria’s oil and gas industry.
In a statement released on Tuesday, PETROAN’s spokesperson, Joseph Obele, mentioned the significance of the move. The National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had granted these licenses to oil marketers on the same day.
PETROAN further explained that these licenses were crucial to ensuring the success of Nigeria’s gas expansion plans, which are part of the broader vision of President Bola Ahmed Tinubu’s administration.
The statement outlined that licensees were expected to use their new authorization to contribute to the nationwide distribution of gas, with the goal of covering all 774 local government areas across the country.
In another important development, PETROAN also announced a strategic partnership with Dangote Refinery and MRS, aimed at enhancing the distribution of petroleum products across the nation.
This collaboration is set to provide Nigerians with more value for their money when purchasing Premium Motor Spirit (PMS), while also addressing price disparities by factoring in transportation costs.
Business
Trump Confirms Microsoft is in Talks to Buy TikTok
On Monday, former US President Donald Trump revealed that Microsoft is in talks to acquire TikTok, as the app’s future in the United States remains uncertain.
TikTok has been under pressure due to a US law requiring the app to separate from its Chinese parent company, ByteDance, or face a potential ban in the country. Trump was asked by reporters if Microsoft was in negotiations to buy the popular app, to which he confirmed, saying, “I would say yes.”
He also noted that there is significant interest in TikTok, adding, “There’s great interest in TikTok.” Trump suggested that a bidding war for the app could also be a positive development.
Business
Dangote Refinery Explains Petrol Price Hike Due to Rising Global Oil Costs
Dangote Refinery has explained that the recent adjustment in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, is a direct result of a sharp increase in global crude oil prices.
In a statement released on Sunday, the refinery emphasized that fluctuations in international oil prices inevitably affect the cost of finished products like petrol. This week, Dangote raised the depot price of petrol by 5%, bringing it from N899.50 to N950 per litre.
Despite this increase, Dangote pointed out that the 5% rise is much lower than the 15% hike seen in global crude oil prices.
Over a short period, Brent Crude has jumped from $70 to $82 per barrel, while Nigerian crude has an additional premium of about $3 per barrel in international markets.
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