Business

Oil Marketers Seek Tax Relief Amidst Profit Downturn

The Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, lamented about the dire situation faced by oil marketers, requesting tax relief from the Federal Government to navigate the challenging economic conditions posed by the removal of fuel subsidy.

Fashola disclosed that escalating costs in the oil sector, coupled with the removal of the subsidy by President Bola Tinubu, have left IPMAN members with zero profit margins.

He emphasized the struggle, stating, “We are just wetting our filling stations to keep them alive.”

Highlighting the contrast in procurement costs, Fashola explained the substantial increase, noting that a truck of Premium Motor Spirit (PMS) that used to cost N7.3 million now requires around N28 million. This financial strain, he argued, necessitates urgent government intervention in the form of tax relief.

While expressing support for fuel subsidy removal and total deregulation, Fashola urged the government to reassess the situation, stating, “the government needs to look at it again and come out with something better.”

Frustrated by the lack of direct supply from the Nigerian National Petroleum Company Limited, Fashola pointed out that IPMAN members are compelled to purchase from third parties. He lamented the selling price dynamics, revealing that private depots were selling at N620-621 per litre, leaving marketers with minimal profit or sometimes operating at a loss.

Seeking tax relief as a form of financial reprieve during this critical period, Fashola clarified that IPMAN does not regret supporting subsidy removal, believing it could contribute to national development if managed sincerely by the government.

President Tinubu had announced the removal of the petrol subsidy on May 29 during his inauguration, and the Federal Government had previously disclosed spending N13 trillion on petrol subsidy between 2005 and 2021.

Victor Ezeja

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.