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FG Approves Freight Rate Increase To Reduce Fuel Scarcity

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In a bid to reduce fuel scarcity in Nigeria, the Federal Government (FG) has approved an increase in freight rate for fuel transporters. Freight rate is the price at which petroleum products are delivered from one location to another. This was disclosed on Thursday in a statement issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The statement reads as follows: “His Excellency, President Muhammadu Buhari, has considered and approved the upward review in freight rate for transporters to alleviate the challenges associated with the distribution of Premium Motor Spirit (PMS) nationwide.

“The approval was after due consultations with industry-wide stakeholders at the instance of the NMDPRA. The review was necessitated by the upswing in the global price of petroleum products especially automotive gas oil (diesel) and its implication on the cost of transporting PMS nationwide.

“The revised freight rate takes effect from June 1, 2022, while still maintaining the current regulated PMS pump price of N165.00/litre”.

The increase in transporters’ freight rate is expected to persuade the Nigerian Association of Road Transport Owners (NARTO) and other relevant stakeholders to mobilize more trucks, with the view of transporting PMS across the country, therefore ensuring an adequate supply of the product.