TO address the difficulties posed by the widespread distribution of Premium Motor Spirit (PMS), President Muhammadu Buhari has approved an increase in the freight rate for carriers.
The existing regulated pump price of N165.00 per litre which went into effect on June 1 was not changed by the increased freight cost for PMS, also known as gasoline.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority requested proper communication with all relevant industry stakeholders before approving the project (NMDPRA).
The increase in the price of petroleum products worldwide, particularly Automotive Gas Oil (Diesel), and its impact on the cost of carrying PMS across the country, according to a statement released on Thursday by the management of NMDPRA, made the review necessary.
As a result, the authority suggested that the freight rate be revised to reflect the reality of the market today.
“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.
“The revised freight rate takes effect from June 1, 2022 while still maintaining the current regulated PMS pump price of N165.00 per litre.
`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, the NNPC Limited, the sole supplier of PMS, has maintained over 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 management said.
The authority reaffirmed to the public its dedication to developing a robust and long-lasting midstream and downstream petroleum sector.
