President Muhammadu Buhari has approved an increase in the freight rate being paid to transporters of petroleum products, in a bid to get rid of the persistent fuel queues in parts of the country.
Oil marketers had repeatedly complained that the lingering fuel queues in Abuja and neighboring Nasarawa and Niger states, among others, were due to the inability of petroleum product transporters to purchase the diesel required to run their trucks.
Addressing this, the Nigerian Midstream and Downstream Petroleum Regulatory Authority announced on Thursday that Buhari had considered the issue and had approved an upward review of the freight rate.
“His Excellency, President Muhammadu Buhari, has considered and approved the upward review in freight rate for transporters to alleviate the challenges associated with the distribution of Premium Motor Spirit (popularly called petrol) nationwide.
“The approval was after due consultations with industry-wide stakeholders at the instance of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
“The review was necessitated by the upswing in the global price of petroleum products especially Automotive Gasoil (diesel) and its implication on the cost of transporting Premium Motor Spirit nationwide.
“The revised freight rate takes effect from June 1, 2022, 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,” the NMDPR stated in a statement.
