Though the hike would not change the pump price of Premium Motor Spirit (PMS) also know as petrol from N165 per litre, it would jerk up the under recovery also known as subsidy payable on the product.
Nigerian President Muhammadu Buhari has approved the hike in transporters freight rate with effect from June 1, 2022.
Platforms Africa reports that though the hike would not change the pump price of Premium Motor Spirit (PMS) also know as petrol from N165 per litre, it would jerk up the under recovery also known as subsidy payable on the product.
The Nigerian Midstream and Downstream Petroleum Regulatory Authoriy (NMDPRA), which announced the hike in a statement sent to Platforms Africa on Thursday, maintained that the increase will further encourage
Nigerian Association of Road Transport Owners (NARTO) and other
stakeholders to deploy more trucks to transport PMS nationwide to
ensure adequate supply of the product.
Below is the statement sent to Platforms Africa.
REVIEW OF PETROLEUM PRODUCTS
TRANSPORTERS FREIGHT RATE
His Excellency, President Muhammadu Buhari, GCFR, has considered
and approved the upward review in freight rate for transporters to
alleviate the challenges associated with the distribution of Premium
Motor Spirit (PMS) nationwide.
The approval was after due consultations with industry-wide stakeholders
at the instance of the Nigerian Midstream and Downstream Petroleum
Regulatory Authority (the Authority).
The review was necessitated by the
upswing in the global price of petroleum products especially Automotive
Gasoil (Diesel) and its implication on the cost of transporting Premium
Motor Spirit (PMS) nationwide.
Consequently, the Authority wishes to advise as follows that:
i. In line with the mandate of the Authority as prescribed in the PIA
(Section 31(i)) to develop and enforce a framework on tariffing and
pricing for natural gas and petroleum products, the transporters
freight rate has been reviewed to reflect current market realities.
ii. The revised freight rate takes effect from 1
st June 2022 while still
maintaining the current regulated PMS pump price of N165.00/Litre.
iii. An Inter-agency Team is being constituted to ensure reconciliation
and payment of outstanding transporters claims in line with
established payment procedure under the Bridging Fund Scheme.
Meanwhile, NNPC, the sole supplier of PMS, has maintained over Thirty-
Two (32) days sufficiency in-country.
We believe the increase in transporters freight rate will further encourage
Nigerian Association of Road Transport Owners (NARTO) and other
stakeholders to deploy more trucks to transport PMS nationwide to
ensure adequate supply of the product.
The Authority assures the public of its commitment to building a strong
and sustainable Midstream and Downstream Petroleum sector.
Signed
NMDPRA Corporate Communications
