The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed why marketers often get unsettled whenever there’s a reduction in petrol prices.

Speaking to The Nation, IPMAN’s National Public Relations Officer, Chief Chinedu Ukadike, explained that frequent price drops disrupt marketers’ financial planning, especially since they rely heavily on bank loans to operate.

“The challenge in the market is this fluctuation of prices. Marketers are always finding it difficult when the prices go down beyond their expectations because they borrowed bank money,” Ukadike said. “Since they borrowed bank money, any minus difference from what they have in their loans will definitely affect both their capital and profit.”

This year alone, Dangote Refinery, Nigeria’s leading petrol supplier, has slashed prices twice, leaving marketers in a bind. IPMAN National President, Alhaji Abubakar Maigandi, noted that price reductions often happen unexpectedly, catching marketers off guard.

“Marketers are usually at a fix about what to do with their consignments since hoarding it affects their capital and profit,” Maigandi said. “And for fear that prices might fall further, they grudgingly dispense their stock at losses.”

Despite the challenges, Ukadike acknowledged the public’s call for cheaper petrol and expressed support for any effort that would bring prices down.

“Nigerians want more reduction. If there is anything they will do to ensure a good price which will navigate the market, I will appreciate it,” he said.

He also praised the 2023 subsidy removal, calling it “the best thing for the oil and gas market.”

As price swings continue, marketers remain cautious, balancing profit pressures with public demand for affordability.