There is enough PMS to supply, all glitches will be removed — NMDPRA Boss, Farouk
On Tuesday, The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in collaboration with the Nigerian National Petroleum Corporation (NNPC) and other regulating authorities including the Nigerian Maritime and Safety Agency (NIMASA), Nigerian Ports Authority (NPA) and other downstream stakeholders including the Major Oil Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) reached an agreement to end the constraints on the supply of Premium Motor Spirit (PMS) popularly called “petrol” across the Country. Following a 9-point resolution, the regulators alongside the stakeholders resolved to revert to the ex-depot official price for petrol. Speaking to NIGERIAN NEWSDIRECT, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed, in an interview said there are enough petroleum products for distribution in the Country, maintaining that upon the elimination of glitches following the resolution agreed on Tuesday, supply constraints would be addressed. Excerpts:
Deliberation Highlights
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 have called the major stakeholders, particularly the marketers to find out what are their problems. 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 became they have to go to buy dollars from the black market, because there is no access to forex from the CBN
Now, they have said there is need for the NNPC to help them in cushioning that effect and that is why we have called to discuss how to solve the challenges. To this regard, they have said their only problem is the exchange rate charged by NIMASA for their services and the NPA for their services, as well as the NNPC for helping them to collect Naira for their freight charges rather than use the dollar. So now, we have all agreed that the NNPC for now will withdraw that Naira denominated payments for the excess vessels they channel to marketers and collect Naira. Once they do that, the additional cost of the marketers at the depots where they charge about N9 on average, over the official exchange rate, would be addressed. It would be withdrawn and price would continue at the official ex-depot price. By so doing, it will help for the ex-pump price, in which when you go to some locations outside Lagos and Abuja, you will see they are selling above the official price. With this, they will bring down that official retail price.
On Bridging Claims
Another issue that we discussed was concerning the bridging clearance. Transporters make claims to bridging for moving products from one place to another in the Country and the insinuation is that bridging charges have been withdrawn: No it has not been withdrawn: It’s still on. All marketers are enjoined to continue their operations and put their claims through the authorities when they process claims for their services. So long we can assure that has been done properly, there is no worry about that. We will continue to pay outstanding claims as well as current claims on bridging. So, they should continue bridging from the coastal depots up to the internal; there is no problem with that.
On Timeline with the Petroleum Industry Act ( PIA )
For now, it is on so long the bill has been passed. There is a process that has been put in place in the PIA (Petroleum Industry Act). But till we get to that point, in the interim we have arranged with the stakeholders for an engagement early next year, probably in the first quarter, to review all these in line with the transition plans which involves the Committee put in place to have a smooth implementation of the PIA.
On the Implementation of the NIMASA Act
There is a law as far as NIMASA Act is concerned. There was also a letter communicated which I understand was communicated to the Ministry of Petroleum Resources. I will not be able to answer why it has not been done but all I can assure you is that there is a process that is in place and that is why the NIMASA Director General was here, the representative of NPA was here and they have all resolved as per the communique to take it up with the supervising ministry as well as the CBN to see which ways can we device to alleviate the suffering of the marketers as regards to logistics of movements.
