President Muhammadu Buhari has approved the upward review of freight rate for fuel transporters to reduce the challenges of distributing petrol nationwide.

The revised freight rate of petrol took effect from June 1.

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 diesel and its implication on the cost of transporting petrol nationwide.

The NMDPRA 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,” stated the agency.

It added, “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.”

According to the statement, the NNPC has over 32 days’ sufficiency fuel 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,” added the NMDPRA.

The NMDPRA assured the public of its commitment to building a strong and sustainable midstream and downstream petroleum sector.

(NAN)