Fuel Stations Face Closure as Marketers Sound Alarm Over Rising Costs

Petroleum product marketers have issued a stark warning as a growing number of fuel retail outlets face imminent closure due to the soaring operational expenses. The dire situation was discussed during the National Executive Council meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) held in Abuja.

Marketers, who gathered at the meeting, raised concerns about the removal of subsidies on petrol, attributing the crisis to a lack of pre-requisite measures taken by the government. They stressed that the nation’s refineries should have been operating, and issues related to foreign exchange should have been resolved prior to removing the petrol subsidy.

Moreover, the marketers questioned the Federal Government’s inability to curb illicit trading of dollars within the country. In a fervent address, NOGASA President, Mr. Benneth Korie, expressed the gravity of the situation, stating that the downstream sector of the country’s oil industry was under immense pressure, leading to the shutdown of fuel stations.

Mr. Korie highlighted the crippling impact of the escalating cost of crude oil and unfavorable exchange rates on depot owners. Many depots, he noted, were now virtually abandoned because owners could not secure bank loans due to prohibitively high interest rates.

He added, “Banks are reluctant to guarantee the release of funds to stakeholders because of the difficulties, instability, and rapidly fluctuating foreign exchange rates. As of today, a significant number of filling stations are shutting down daily, and dealers are teetering on the brink of bankruptcy due to their inability to secure funds for station orders.”

The situation has raised alarm bells throughout the Nigerian fuel industry, with businesses struggling to keep their doors open amidst the unrelenting financial challenges. As the country grapples with these issues, it remains to be seen how the government will respond to the mounting pressure on the petroleum sector.