The Federal Government of Nigeria has assured Nigerians that about 1.6 billion litres of Premium Motor Spirit (PMS) otherwise called petrol, is available for distribution to ease the scarcity of the product in the country.
This was contained in a statement released on Friday by the Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA) Corporation Communications department.
NMDPRA blamed the cross-border smugglers for the fuel scarcity experienced in the country since the beginning of 2022.
The statement partly read; “The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA wishes to reassure all Nigerians that there is a PMS sufficiency of over 1.6 billion litres as of 26th January 2023, both on land and marine.
“NNPC has additionally made 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 current distribution hitch is heightened by activities of cross-border smugglers, who divert PMS meant for the Nigerian market to neighboring countries where PMS prices are significantly higher than Nigeria’s regulated price. We are engaging and collaborating with Nigeria Customs Services to address this issue.
“The price 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 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.
“To solve the lingering fuel scarcity, the Commission said it would apply modest adjustments in the cost of product transportation to cater to the impact of high AGO prices on transporters while making special diesel provisions to marketers at a reduced price,” the statement contained.
It added that it would ensure the automation of products sales interface, the emplacement of a monitoring system in collaboration with government security agencies for distribution to retail outlets, extended operating hours at the loading and depots and some selected filling stations; rehabilitation of critical fuel distribution road network through the federal government’s tax credit scheme by the NNPCL; regular stakeholders’ engagement, among others.
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NMDPRA stated further; “We have reinforced our monitoring teams and appropriate sanctions to checkmate the activities of erring marketers who are distorting our planned product flow to designated outlets in order to profiteer from price arbitrage.
“As a medium to long term measure, cost-efficient means of transportation, including Autogas 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.”