Success Nwogu 
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the cost of buying a truckload of fuel (45,000 litres) has risen from N9.6 million to currently between N34 million and N36 million at the depots of private owners.
The Chairman, IPMAN, NNPC Depot, Ore Western Zone of Nigeria, Engineer Shina Amoo, in an interview with New Telegraph yesterday also said the cost has risen to N26 million at depots of the Nigerian National Petroleum Company Limited (NNPC Ltd).
He attributed the price increase to fuel subsidy removal, deregulation and foreign exchange volatility. He also decried that banks now charge them between 36 per cent and 37 per cent interest annually.
He stated that these challenges, which have skyrocketed their costs, have made the business environment toxic. According to him, it is even worse that they no longer access petroleum products directly from the NNPC depots and so have now been forced to buy at exorbitant rates from depot owners.
He stated that because of the high cost they incur to access the product, they sell between N800 and N850 in some states while NNPC stations sell between N568 and N580. According to him, this has made it difficult for independent marketers to compete favorably with stations of NNPC Retail.
He called on appropriate authorities to address the challenges and give the marketers a relief. Amoo said: “Before now, a truck of fuel, 45,000 litres, was about N9.6 million but now it is from N34 million to N36 million. Banks are charging us 36 per cent and 37 per cent interest rate per annum.
That is killing. “The high cost of fuel was caused by subsidy removal, deregulation and the foreign exchange issue due to the importation of the product. If importation is reduced, we could enjoy a cheaper landing cost of petrol. “NNPC is about N26 million for a truck of 45,000 litres of fuel. But before you can get such a product from NNPC, it will be difficult.
I am an independent marketer, I accessed NNPC products with my official product over three or four years. I buy from private depot owners at a premium to my independent retail outlets. “That is why I decided to give out my outlets to major marketers and semi-middle marketers to do business with them.
I carry their brands. I buy the product, and I have my N5 margin but the turnover is what I am sitting down with. The turnover, which is my frequency of loading, my pump integrity, my commitment to the total quality management of the station, I enjoy customer loyalty. I will still be able to exist in business despite the 36 per cent or 37 per cent of bank rate.”
