ECONOMY

Buhari approves upward review of oil transporters freight rate

Published

2 years ago

June 17, 2022

Emmanuella Anokam

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) nationwide.

The revised freight rate of PMS, otherwise known as petrol, took effect from June 1while 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).

A statement on Thursday by the management of NMDPRA 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.

“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 June 1, 2022 while still maintaining the current regulated PMS pump price of N165.00 per 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.

“Meanwhile, the NNPC Limited, the sole supplier of PMS, has maintained over 32 days sufficiency in-country.

“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,” the management said.

The authority assured the public of its commitment to building a strong and sustainable Midstream and Downstream Petroleum sector.

Related Topics:headline

Up Next

NADDC DG seeks use of electric vehicles in Africa

Don't Miss

Naira loses against dollar, exchanges at 420.50

Emmanuella Anokam

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.