Tag: Petrol

The freight rate of petrol, otherwise known as Premium Motor Spirit (PMS) has been increased by the Federal Government by N10 per litre.   It was gathered that a circular on the increase, which took effect June 1, would be issued today.   President, Nigerian Association of Road Transport Owners (NARTO), Alhaji Yusuf Othman, said the increase was because most transporters could not afford the cost of diesel that used to be N600/litre as of last month.   The transporters subsequently stopped lifting the product.   This has culminated in its scarcity in the Federal Capital Territory (FCT) and its environs where queues around retail outlets have persisted in the last few days.   It has also triggered black marketing of the PMS with some traders vending it for between N3, 000 to N4,500 per litre in plastic containers.   According to the National Vice President- Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi, the reason why petrol scarcity remained unabated yesterday was due to the high cost of diesel, "It has soared to N800 per litre.”   According to him, it is no longer sustainable to transport petrol with the present cost of diesel.   He noted that it takes about 1,000 to 1,100 litres to fuel a truck with diesel from Lagos to Abuja.   Maigandi explained that when multiplied by N800 per litre, it becomes N800, 000 or N880, 000 diesel for the trip, while the government had been paying N600,000 for the diesel.   There was however some respite to that high cost yesterday as Othman revealed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved N10 per litre an increase in freight rates across the board for the transporters.   He added that the association broke the good news to its members yesterday and asked them to resume work.   In his words: “Cost of diesel has made so many transporters parked their trucks. But then the government has come to our rescue. The government has approved N10 across the board. “This is effective from 1st of June. So, the circular will be released tomorrow (today Monday) to that effect.   “And we have called on our members to come out and reciprocate this kind gesture at this difficult time. That is the true situation. The government themselves will release an official circular tomorrow (Monday).”   NMDPRA raised the freight rates to N25/litre owing earlier this year to transporters demand for an upward review.   NMDPRA’s General Manager, Public Corporate Affairs, Mr. Apollo Kimchi, confirmed that the management of the authority was in a meeting yesterday working on the rate.   He noted that the new rate would be made public by 10am (today) Monday. Kimch was however silent on the amount.   ‘They said they are still working on it. They are working on something but it is not yet concluded. They said by 10:00am tomorrow they will be able to come up. Presently, they (management staff) are in the office,” the spokesman said.