See filling stations operators plans after complain of low patronage

• Filling stations have reported a significant drop in customer turnout as petrol prices soar above N1,000 per litre
• There are fears that filling station owners will begin to downsize their workforce to manage the high operational cost
• To attract more customers, petrol marketers under PETROAN and IPMAN are considering slashing pump prices

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Filling station operators in Nigeria have cried out about dwindling customer turnout as petrol prices exceed N1,000 per litre.

The low patronage is affecting marketers' return on investment, and they are considering scaling back operations and reducing fuel pump prices.

Nigerians buy less fuel Photo credit: Benson Ibeabuchi
Source: Getty Images

Speaking on Channels Television’s The Morning Brief on Monday, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed concerns about the financial challenges facing the industry.

Gillis-Harry highlighted that the rising cost of bulk fuel purchases has forced filling station owners to rethink their operations, stating:

"We used to buy 45,000 litres of fuel for under n8.5 million a few months ago, but now it costs around n49 million."

According to Gillis-Harry, retail owners are not only burdened by escalating product costs but also by limited financial support from lenders.

He added:

"Financial institutions are not coming to our rescue. The cost of money is so high, and it’s increasingly difficult to sell. Even when we have products in stock, they are slow to move because Nigerians are also struggling with reduced purchasing power."

IPMAN complains of low patronage

The Independent Petroleum Marketers Association of Nigeria (IPMAN) also echoed the concerns raised by PETROAN.

Ukadike Chined, the spokesman of IPMAN who was in the programme, complained of low patronage and called for urgent intervention.

He expressed optimism that, with time, the prices of petroleum products at filling stations will begin to crash.

There are expectations that petrol pump prices will fall below N1,000 per litre once Dangote Refinery begins selling directly to marketers.

CNG: FG opens portal to convert cars

Earlier, Legit.ng reported that the federal government launched an application portal for Nigerians to convert their vehicles from Premium Motor Spirit, also known as petrol, to CNG.

The National Orientation Agency, in a statement titled “Payment Plan to Make it Easier to Switch to CNG,” announced that Nigerians can apply via the portal to convert their vehicles to CNG and spread payments through monthly instalments.

The statement noted that there are flexible payment options and assured applicants of support throughout the process with chances of quick approval.

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Source: Legit.ng