Marketers of Premium Motor Spirit (PMS) petrol have lost N200billion in six months owing to the volatility of prices.
Independent Petroleum Marketers Association of Nigeria (IPMAN), National Public Relations Officer, Chief Chinedu Ukadike made this known to The Nation yesterday.
His words: “The fluctuations have led to persistent losses for marketers especially as prices have trended downwards recently. Marketers have lost over N200bn in the last 6 months due to price volatility.”
The losses, he said, have resulted in depletion of the number of active traders from 70 marketers in September 2024 to less than 30 in March this year.
Ukadike noted that competition in the market has crashed the price.
“This has narrowed down the number of players trading products in bulk. Active bulk traders have reduced from over 70 marketers in September 2024 to less than 30 in March 2025.
” Prices to retailers have been relatively low due to competition.”
The spokesman was, however, worried that the losses may result in abandonment of the downstream business.
Continuing, he said, “But the fear is that the capital migration from the downstream may exacerbate any supply shock in the industry.
“For example, during the recent impasse between Dangote and FG ex-depot prices have increased to as high as N900 per liter in some states as only a few marketers are currently trading petroleum products unlike in the past. Any further structural changes may lead to severe high pump prices in the near future.”
