Fuel Price Hike: One Million Workers to Lose Their Jobs Over Petroleum Marketers’ Imminent Closedown

With fuel consumption dropping drastically due to soaring prices, Nigeria’s oil marketers are facing severe financial pressures, leading many to consider closing their businesses.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns that nearly 10,000 dealers nationwide are on the brink of shutting down, a situation that could result in one million job losses.
PETROAN’s National Public Relations Officer, Dr. Joseph Obele, highlighted the devastating impact on the sector, noting that the cost of a truckload of petrol had skyrocketed from N7 million to N47 million over the past 16 months.
“Three days ago, at a meeting at the PETROAN national headquarters, we saw indications that around 10,000 of our members could exit the business within the next 45 days due to depleted trading capital,” Obele explained.
To prevent mass closures, PETROAN sent a letter to the President on October 21, requesting a N100 billion grant to support affected marketers and keep their operations running.
According to Obele, the closures could affect a total workforce of about one million employees if businesses are forced to halt operations.
Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that high prices had reduced fuel consumption nationwide, impacting marketers’ purchasing power.
“The price of a truckload is much higher now, so we’re buying less. For example, someone who could afford 10 trucks before can only buy eight now. We’re only able to sell the small quantities we can afford,” Maigandi said.
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) also reported widespread job losses among truck drivers and petrol station employees. NUPENG Secretary-General, Mr. Afolabi Olawale, stated that many petrol station owners could no longer afford even a single truckload, leading to closures and layoffs.
“The economy is tough. Many stations have closed, and our members, especially truck drivers and station workers, are feeling the brunt of it,” Olawale said.
Although unable to provide an exact figure, Olawale confirmed that job losses were widespread, particularly in the downstream sector.
“The downstream sector is directly affected because it includes truck drivers, station workers, and representatives of marketers at depots,” he noted.
Obele added that the price hike had also curbed cross-border fuel smuggling, effectively ending the black-market trade that had long been an issue in the region.