Because of the difficulties in statewide distribution of PMS, President Muhammadu Buhari of Nigeria has approved an increase in freight rates for transporters.
According to NMDPRA, this was made public on Thursday, and it is expected to be implemented by the end of 2017.
Nigerian President Muhammadu Buhari has approved an increase in freight rates for transporters to ease the distribution of Premium Motor Spirit (PMS) nationally, according to a statement.
Following a thorough review of all relevant parties, the Nigerian Midstream and Downstream Petroleum Regulatory Authority granted the project its final approval” (the Authority). After an increase in world oil prices demanded this evaluation, so too did the rising expense of shipping Premium Motor Spirit (PMS) countrywide, which forced this investigation.
‘As a result, the Authority has issued the following statement:
In accordance with the Authority’s mission under the PIA (Section 34()) to create and enforce a tariffing and pricing system for natural gas and petroleum products, the transporters’ freight rate has been reevaluated to reflect current market conditions.
To maintain the current regulated PMS pump price of N165.00/Litre, the amended freight rate takes effect on June 1, 2012. The Bridging Fund Scheme has formed an Inter-agency Team to ensure the reconciliation and settlement of pending claims by transporters.
There is still more than a month’s supply available from the single provider of PMS, the Nigerian National Petroleum Corporation (NNPC).”
NARTO and other stakeholders should be encouraged to use additional trucks to carry PMS across the country in order to assure an adequate supply of the commodity, as we anticipate the increased freight cost for transporters will do.”
A strong and sustainable Midstream and Downstream Petroleum sector is the goal of the Authority. “The Authority assures the public of its dedication to this goal.”