The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have reassured all Nigerians that there is PMS sufficiency of over 1.6 billion litres as of 26th January 2023 both on land and marine.
According to a press release on Friday, 27 January 2023 signed by the NMDPRA Corporate Communications department, said that NNPC has additionally made a firm commitment to supply more volume of PMS for the months ahead to guarantee national energy security and nationwide availability at the government-regulated price.
The statement read, “The current distribution hitch is heightened by activities of cross-border smugglers, who divert PMS meant for the Nigerian market to neighbouring countries where PMS prices are significantly higher than Nigeria’s regulated price. We are engaging and collaborating with the Nigeria Customs Service to address this issue.
“The arbitrage between Nigeria and neighbouring countries has continued to grow due to inflation and the regional impact of the Russia-Ukraine conflict on the global energy value chain including international freight rates and coastal price vessels charter rates.
“We wish to bring to public knowledge that the ongoing government effort to rehabilitate strategic Nigerian roads ahead of the rainy season has necessitated rerouting of tanker trucks conveying petroleum products to alternative roads, therefore increasing transit time and associated cost of product transportation.
“NMDPRA and key stakeholders including NNPC have put various measures in place to address the issues, including:
1. Modest adjustment in the cost of product transportation to cater for the impact of high AGO prices on transporters while making special provisions of diesel to marketers at a reduced price.
2. Automation of products sales interface.
3 Emplacement of a monitoring system in collaboration with government security agencies for the distribution of products to retail outlets
4. Extended operating hours both at the loading depots and some selected filling stations.
5. Rehabilitation of critical fuel distribution road network through the Federal Government’s tax credit scheme by the NNPC
6. Regular stakeholders’ engagements; among others.
“We have reinforced our monitoring teams and appropriate sanctions to checkmate the activities of marketers who are distorting our planned product flow to designated outlets to profiteer from price arbitrage have been emplaced.
“As a medium to long-term measure, cost-efficient means of transportation, including conversions and pipeline rehabilitation, are being implemented. This will be complemented by end-to-end process automation across the value chain.
“NMDPRA appreciates the collaborative efforts of some patriotic oil marketing companies who, despite the glaring incentives to engage in illegal price arbitrage, have stood steadfast and operated responsibly within the approved pricing limits.
“We would like to reassure all Nigerians that NMDPRA as a responsible regulatory authority would continue to work passionately to ensure energy security and continuous collaboration with all the relevant stakeholders to restore normalcy in the Premium Motor Spirit supply and distribution network within the shortest possible time.
