The federal government announced Thursday it has approved the upward review in freight rate for transporters to help alleviate the challenges associated with distribution of petroleum products nationwide. The revised freight rate takes effect from June 1 while the pump price of petrol remains at N165 per litre, a statement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said Thursday. The statement said the approval was granted after due consultations with industry-wide parties. It said the review was necessitated by the upswing in the global price of petroleum products especially diesel, and its implication on the cost of transporting petrol nationwide.
The development came after the Nigerian Association of Road Transport Owners (NARTO) asked for an increase in the freight rate for petrol due to the high cost of diesel in the country. In May, the Independent Petroleum Marketers Association of Nigeria (IPMAN) claimed that the government owed its members half a trillion naira.
However, the NMDPRA told Easterner it had paid oil marketers bridging claims of about N59 billion to marketers in five months. In recent months, fuel scarcity has worsened in Abuja and several other cities across the country. The statement by the NMDPRA reads: “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 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 1st June 2022 while still maintaining the current regulated PMS pump price of N165.00/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.”
“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.”
