•Report by Kamil Opeyemi
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reassured Nigerians that there is PMS sufficiency of over 1.6 billions litres both on land and marine.
In a statement on Friday,
The agency maintained that the Nigerian National Petroleum Company (NNPC) Limited is committed to supplying more volume of PMS in the coming months at government-regulated prices.
This is as the agency alleged that,the current distribution hitch is heightened by activities of cross-border smugglers, who divert PMS meant for 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 statement reads.
“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.”
According to the statement,key stakeholders have put various measures in place to address the current challenges as a result of fuel scarcity.
NMDPRA stated that some of the measures include “a modest adjustment in the cost of product transportation to cater for the impact of high diesel prices on transporters.
Others are the “automation of product sales interface, and putting in place a monitoring system in collaboration with government security agencies for the distribution of products to retail outlets, the extension of operating hours at the loading depots and selected filling stations, rehabilitation of critical fuel distribution road network through Federal Government’s tax credit scheme by the NNPCL among others”
It further stated that,”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 have been emplaced.
“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,the statement added