FG’s new tax regime will cause fuel distribution crisis – Petroleum marketers
Written by Joseph Emeribe on November 22, 2022
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has expressed concerns over the new 0.5 per cent tax on gross turnover of the petroleum marketing firms proposed by the federal government.
According to the executive secretary, DAPPMAN- Olufemi Adewole, at the maiden edition of the Platforms Africa Continental Forum held in Lagos on Tuesday, the tax would put many firms out of business.
He stressed that there were indications that a fuel distribution crisis may soon hit the country if the government implemented the new tax regime.
Adewole added that the margins they made when fuel sold at N40 per litre were the same when the price rose to N160 per litre and N200 per litre, respectively and noted that the shortage of foreign exchange (forex) coupled with several unauthorized levies and bad roads make fuel importation and distribution burdensome for members.