By John Ikani
Following the challenges being experienced by transporters of petroleum products which had caused disruptions in the supply of petrol across the country, President Muhammadu Buhari has approved an upward review in the cost of freight rate.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), disclosed this in a statement on Thursday.
According to the statement, the approval followed a call by the Nigerian Association of Road Transport Owners (NARTO) for an increase in the freight rate for petrol due to the high cost of diesel in the country.
To address this concern, the NMDPRA said Buhari had considered the issue and had approved an upward review of the freight rate.
What NMDPRA is saying
“His Excellency, President Muhammadu Buhari, has considered and approved the upward review in freight rate for transporters to alleviate the challenges associated with the distribution of Premium Motor Spirit (popularly called petrol) nationwide,” the NMDPR stated in a statement issued in Abuja.
Although the agency was silent on the exact amount, our correspondent gathered from sources in the authority that the government increased the freight rate by N10.
“The approval was after due consultations with industry-wide stakeholders at the instance of the Nigerian Midstream and Downstream Petroleum Regulatory Authority,” the agency stated in its statement.
It added, “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 nationwide.”
Consequently, the authority stated that in line with its mandate as prescribed in the Petroleum Industry Act (Section 31(i)) to develop and enforce a framework for tariffing and pricing for natural gas and petroleum products, the transporters’ freight rate had 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/litre,” it stated.
The NMDPRA added, “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.”
