New fuel price: IPMAN demands compensation to cover loss

The Independent Petroleum Marketers Association (IPMAN) on Thursday demanded palliative measure from the Federal government to cover losses inflicted by the sudden reduction on pump prize.

The Federal Government on Wednesday announced the reduction of pump price of fuel from N145 per litre to N124 per litre owing to drastic fall in the global demand.

Addressing journalists on Thursday in Kano, IPMAN chairman in Kano, Alhaji Bashir Danmalam, lamented that the urgency in the pronouncement has created untold losses to members who have large stock of products.

Danmalam stressed the demand became necessary 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 along 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,” Danmalam said.

With directive of immediate compliance by the Federal government, observation indicated that independent marketers are yet to adjust to the new prize in Kano.