Retailers of petroleum products are beginning to lament low margins as a result of the new price regime. In September 2011, Jimoh Ibrahim announced his intention to transfer operatorship of Energy service stations nationwide to "young entrepreneurs" as a result of the derregulation of the downstream petroleum sector. Others have simply lamented the new situation. The question therefore is: Why has the business suddenly become less attractive even with the higher price?


One reason as some  marketers have lamented is that higher working capital is required. More money has to be committed to procure the product before selling.  Another reason is lower ROI. Prior to subsidy removal, ROI was about 15% now it is down to about 9%. Other factors are higher operating cost due to direct increase in cost of fuel etc. These are some of the reasons we see on the surface but are there other reasons we may not know about? Was there something special the subsidy brought behind the scenes? Were these marketers involved in sabotaging supply in order to force prices up or where they involved in smuggling across borders? I leave these questions for those who may know better to comment on.

Source: efisher

Everyone has to make sacrifices. . . Even the looters.
This too shall pass. . . .
Patience Nigerians. . . Patience.

Thank God for America o!
I for don krrrrrrrrrrrrrrrrrrrrrrase!
It is gonna be rough I swia!