The federal government announced Thursday that it has approved upward revisions to the freight rate for carriers to help ease challenges associated with distributing petroleum products across the country.
The revised freight rate comes into effect from June 1, while the pump price of petrol remains at N165 per litre, a statement from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)he said Thursday.
The statement says the approval was granted after due consultation with parties from across the industry.
He said that the review was necessary due to the increase in the world price of petroleum products, especially diesel, and its implication in the cost of transporting gasoline throughout the country.
The development came after the Nigerian Association of Road Transport Owners (NARTO) requested an increase in the gasoline freight rate due to the high cost of diesel in the country.
In May, the Independent Petroleum Traders Association of Nigeria (IPMAN) claimed that the government owed its members half a billion naira.
However, the NMDPRA told PREMIUM TIMES that it had paid oil sellers for bridging claims of around N59 billion to sellers in five months.
In recent months, fuel shortages have worsened in Abuja and several other cities in the country.
The NMDPRA statement reads: “His Excellency, Chairman Muhammadu Buhari, GCFR, has considered and approved the upward revision in the freight rate for carriers to alleviate the challenges associated with the distribution of Premium Motor Spirit (PMS) throughout the country.
“The approval came after due consultation with stakeholders from across the industry at the behest of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (the Authority). The review was necessary due to the increase in the world price of petroleum products, especially automotive gas oil (Diesel) and its implication in the cost of transporting Premium Motor Spirit (PMS) throughout the country.
“Consequently, the Authority wishes to report the following that, in accordance with the Authority’s mandate as prescribed in the PIA (Section 31 (i)) to develop and enforce a tariff and pricing framework for natural gas and petroleum products, carriers freight rate has been revised to reflect current market realities.
“The revised freight rate is effective from June 1, 2022 while maintaining the current regulated PMS pump price of N165.00/Litre.
“An inter-institutional team is being set up to guarantee the reconciliation and payment of pending claims from carriers in accordance with the payment procedure established under the Bridge Fund Plan.”
“We believe that the increase in freight rate from carriers will further encourage the Nigerian Association of Road Transport Owners (NARTO) and other stakeholders to deploy more trucks to transport PMS throughout the country to ensure an adequate supply of the product”.
