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Wa: LPG retailers bemoan dwindling profit margins

Liquefied Petroleum Gas (LPG) retailers in Wa in the Upper West Region have expressed grave concern over the sharp decline in patronage of their products.

They attributed the situation to the persistent increase in the price of the commodity.

Several managers of LPG filling stations are worried about the future of their businesses.

They intimated that if prices of LPG continue to rise for the next few months they may run out of business.

According to them, their profit margins keep dwindling as they are sometimes unable to pay salaries to their staff.

Home Radio news Albert Dapare visited some LPG filling stations and can confirm that there is low patronage at the facilities as no client was seen after several hours.

A supervisor at one of the gas filling stations who spoke to Home Radio news on condition of anonymity stated that there exist some trust issues between attendants and their clients due to the frequent price changes.

“When people know the price of LPG and return the next time and it has been increased they begin to think we are exploiting them.”

The CEO of Biyad Trinity Gas, Alhaji Yahaya Saadugu stated that his business is merely surviving as he barely makes profit.

He revealed that he even considered converting it into a fuel station but for his commitment to sacrifice for his people.

Mr. Saadugu also explained that they have seen a decline of over fifty percent (50%) in patronage which affects returns.

“The fluctuation in price every two weeks affects both the Oil Marketing Companies and we the retailers. Anytime you are to order for LPG when you run out of stock you have to raise money elsewhere to add to your sales in oder to make payments due to the increment.”

Speaking to a client at one of the LPG filling stations who identified herself as Bayor Rita, she said “Previously I used LPG for cooking everything at home but now I compliment it with charcoal. I only use LPG when I’m in a hurry.”

Source: Home Radio

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