Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved a new freight rate for transporters to alleviate the challenges associated with the distribution of petrol nationwide.
The agency noted that the review freight rate takes effect from June 2022, while still maintaining the current regulated PMS pump price of N165.00/litre.
According to NMDPRA, the review was necessitated by the upswing in the global price of petroleum products, especially Automotive Gas Oil (Diesel), and its implication on the cost of transporting Premium Motor Spirit (PMS) nationwide.
It noted: “In line with the mandate of the Authority as prescribed in the Petroleum Industry Act (PIA) (section 31) 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.
“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. 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.”
NMDPRA is the authority that is responsible for the technical and commercial regulation of the midstream and downstream operations in Nigeria’s oil and gas industry.
BADEJO ADEMUYIWA has 23 years experience as a Finance Writer, specialising in Insurance and Investigative Reporting.