*The Nigerian Midstream and Downstream Petroleum Regulatory Authority (The Authority) says, the oil 鈥榯ransporters’ freight rate has been reviewed to reflect current market realities鈥�

Isola Moses | 绿帽献妻

President Muhammadu Buhari has approved the upward review in freight rate for transporters to alleviate the challenges associated with the distribution of Premium Motor Spirit (PMS), otherwise known as petrol throughout Nigeria.

The revised freight rate of PMS, otherwise known as petrol, took effect from June 1, 2022, while still maintaining the current regulated pump price of N165.00 per litre.

The approval was after due consultation with industry-wide stakeholders at the instance of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The Management of NMDPRA, in a statement issued Thursday, June 16, 2022, said 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 PMS nationwide.

Consequently, the Authority advised that the freight rate be reviewed to reflect current market realities.

The Authority said: 鈥淚n 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.

鈥淭he revised freight rate takes effect from June 1, 2022 while still maintaining the current regulated PMS pump price of N165.00 per litre.

鈥淎n 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.鈥�

The NMDPRA Management also stated: 鈥淢eanwhile, the NNPC Limited, the sole supplier of PMS, has maintained over 32 days鈥� sufficiency in-country.

鈥淲e 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,鈥� the management said.

The country鈥檚 oil and gas sector regulator assured consumers of its commitment to building a strong and sustainable Midstream and Downstream Petroleum sector.