…As DAPPMA reverts to official ex-depot price
…Bridging claim continues – NMDPRA
…To engage Transport Ministry on Dollar levies
By Moses Adeniyi
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in collaboration with the Nigerian National Petroleum Corporation (NNPC), The Nigerian Maritime Administration and Safety Agency, (NIMASA) and operators have sealed agreement with the downstream stakeholders to end the constraints on the supply of Premium Motor Spirit (PMS), popularly called “petrol” across the Country.
The Memorandum of Understanding (MOU) among the parties followed the resolution of a stakeholders’ meeting held on Tuesday, the 9th of November 2021, at the Federal Palace Lagos centred on the position to give “Assurance of Petroleum Products Supply and Distribution in Nigeria.”
Following a closed door deliberation, NMDPRA and other regulators as the Nigerian Maritime and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA), in collaboration with NNPC and other downstream stakeholders including the Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), reached a 9-point resolution giving assurance of petroleum products supply and distribution with a reversal of the ex-depot price of PMS to the official rate.
According to the resolution, read by the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed, “the NNPC assured the supply of sufficient PMS in the Country.
Also, “NNPC shall immediately revert to Naira denominated invoices for excess capacity for coastal movement using the I&E Window rate for the time being.
It was also agreed that “NIMASA and NPA are to engage their supervising ministries and the CBN to seek ways of addressing the challenges relating to payment of dues and levies in US dollars,” while “NMDPRA is to engage stakeholders on the reconciliation of bridging claims; the current bridging and administrative charges shall continue to apply.”
The stakeholders resolved that “Marketers/Depot owners are to start charging the official ex-depot price immediately.”
Also, the “NMDPRA will engage stakeholders within the first quarter of 2022 on the implementation guidelines and timelines of the Petroleum Industry Act (PAI) 2021.”
“All stakeholders agreed to collaborate to ensure smooth and sufficient supply and distribution of petroleum product to all parts of the Country.”
Furthermore, “MOMAN AND DAPPMA are to immediately communicate this resolution to marketers.”
The resolution jointly signed by NMDPRA boss, and NNPC representative, Engr. Yemi Adetunji, Executive Secretary MOMAN Clement Isong and Executive Secretary DAPPMA representative, Mr. Adewole Olufemi, was to be given aggressive attention with immediate action for implementation.
Speaking to Nigerian NewsDirect, the Chief Executive Officer of the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed to our correspondent that the meeting was convened owing to concerns by marketers, who he said, have been facing glitches from dollar scarcity.
“The meeting was called for petroleum concerns, particularly petrol in the Country. If you notice, there have been a lot of queues unnecessarily. That is why we called major stakeholders, particularly the marketers to find out what their problems are. Why are they selling PMS higher than the usual price at their depots?
“They explained to us their concerns particularly as regards to shipping of the products from the marine vessels to their depots and this has been costing them money because they have to buy dollars from the black market, because there is no access to forex from the CBN,” he said.
He disclosed that against the impression of withdrawal, bridging claims still subsist.
“The insinuation is that bridging charges have been withdrawn: No it has not been withdrawn: It’s still on,” he said, maintaining that “all marketers are enjoined to continue their operations and put their claims through the authorities when they process claims for their services.”