The Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN), yesterday demanded compensation from the Federal Government to its members across the country for losing over N10 billion following the slash on fuel pump price of fuel.
It would be recalled that the Federal Government last week Wednesday announced the reduction of fuel pump price from N145 per litre to N125 per litre.
Speaking with Journalists in Lagos, Prince Billy Harry, the PETROAN’s President, called on the Federal Government to come up with palliative measures to support its members who have incur over N10billion losses due to the sudden reduction in fuel pump price.
Harry, who is also the National Vice President , Nigeria Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), said in Rivers alone, the marketers are losing about N300 million as a result of sudden change.
Given the breakdown, he said: “As at the time government make the announcement, many of us just bought new product at the old price. For instance we bought this product at N133.28k per liter and to be sold at N145 litre. But now government said we should sell at N125 per litre .
“We are losing about N20 on each litre”, he added.
Harry specifically said: “Now in Rivers alone, the statistics we have at the moment says that about 15 million litres have been bought at the old rate. Now when you multiply that by N20 loss, which gives us about N300 million losses.
“Now, marketers across the country are buying nothing less than 500million litres at a go. So you can imagine how much we will loose with this sudden change”.
He explained that the union found it necessary to make the request in view of the fact that 95 per cent of its members who have old stocks of the commodity would incur a huge loss following the reduction of the fuel pump price.
“Even though we are happy with the new development and the Federal Government should be commended for the gesture but the government should consider the fact that many of our members with old stocks will incur a huge loss.
According to him, the palliative measures would go a long way in reducing the loss the marketers will incur since most of them have the old stocks which were supposed to be disposed at the N145 per litre in order to recover their money.
“Even before the announcement, many of our members have already bought and loaded their vehicles with the product at old prices from Lagos, Port Harcourt and Warri.
“So by the time they reach their various destinations, they must sell the product at N125 per litre instead of N145 per litre which means they will have to incur some losses as there will be a margin of N20,” Harry said.
He expressed hope that the Federal Government would come to their aid as it had promised to support private depots.