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HomeEconomyIPMAN says PMS hike reduces sales volume by 50% in SE

IPMAN says PMS hike reduces sales volume by 50% in SE

Awka, July 19, 2023: The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the hike in the price of products due to abrupt removal of subsidy was threatening the survival of their businesses.

Mr Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community said average sales had dropped by about 50 percent from May 30 to date.

Anyaso, whose depot serves Anambra, Ebonyi and Enugu States, said marketers were facing existential challenge as low profits as a result of reduced sales was affecting their abilities to meet their operational cost and obligation with banks.

He said if the negative development was not urgently challenged, many operators would shut down, adding that it would result in the collapse of the downstream sector and loss of numerous jobs.

According to him, marketers are worse affected by this policy of subsidy removal, profitability has reduced because average sales has reduced by about 50 percent.

“Most marketers are finding it difficult to remain in business because increasing cost of operation, payment of workers and meeting bank obligations is becoming difficult.

“We appeal to the Federal Government to save downstream operations from collapsing by working on reduction in pump prices,” he said.

The News Agency of Nigeria (NAN) reports that Premium Motor Spirit now sells for between ₦630 and ₦640 in Awka, the capital of Anambra and its environ.

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