Buhari approves upward review of freight rate for transporters of petroleum products

Nigeria’s president, Muhammadu Buhari, has approved an upward review in freight rate for transporters to alleviate the challenges associated with the distribution of Premium Motor Spirit (PMS) nationwide.

This was announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday.

The statement said, “His Excellency, President Muhammadu Buhari, CCFR, has considered and approved the upward review in freight rate for transporters to alleviate the challenges associated with the distribution of Premium Motor Spirit (PMS) nationwide.

“The approval was after due consultations with industry-wide stakeholders at the instance of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (the Authority). The review was necessitated by the upswing in the global price of petroleum products especially Automotive Gasoll (Diesel) and its implication on the cost of transporting Premium Motor Spirit (PMS) nationwide.

‘Consequently, the Authority wishes to advise as follows that:

In line with the mandate of the Authority as prescribed in the PIA (Section 34()) 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 1 June 2012 while still maintaining the current regulated PMS pump price of N165.00/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, NNPC, the sole supplier of PMS, has maintained over Thirty-Two (52) days sufficiency in the 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 Authority assures the public of its commitment to building a strong and sustainable Midstream and Downstream Petroleum sector.”