- Advertisement -spot_img
28.2 C
Lagos
HomeBusinessNigeria hikes freight rate on petroleum products, to ease transporter's woes

Nigeria hikes freight rate on petroleum products, to ease transporter’s woes

- Advertisement -spot_img

Nigeria on Thursday announced a hike in the freight rate for petroleum products across the country, despite an outcry by transporters over the rising cost of operations.

The freight rate for petroleum products had in March this year been hiked by 25 per cent from N9.5 per litre to N11.87/litre.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a statement in Abuja, the new rate took effect on June 1, 2022.

“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 Nigerian Midstream and Downstream Petroleum Regulatory Authority (the Authority).

“The review was necessitated by the upswing in the global price of petroleum products especially Automotive Gasoil (Diesel) and its implication on the cost of transporting Premium Motor Spirit (PMS) nationwide.

READ ALSO: Buhari says African nations must address climate change issues along with poverty

“Consequently, the Authority wishes to advise as follows that:

“In line with the mandate of the Authority as prescribed in the PIA (Section 31(i)) to develop and enforce a framework on tariffing and pricing for natural gas and petroleum products, the transporters freight rate has been reviewed to reflect current market realities.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img