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.