NMDPRA Seeks Upward Review Of PMS Bridging Fund
…Assures Of Claims Payment
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it will continue to honour and process claims for bridging of PMS to ensure product availability nationwide.
The Authority Chief Executive, NMDPRA, Engr. Farouk Ahmed said this on Thursday in Abuja when delegates from the National Association of Road Transport Owners (NARTO) paid a courtesy call on the Management Team of the Authority.
The bridging scheme is meant to ensure uniform pump price of petroleum products in the country.
The scheme was introduced as a temporary measure during turnaround maintenance of refineries wherein government sought to support marketers in transporting petroleum products nationwide.
Ahmed said the Authority was aware of the fact that the signing of the Petroleum Industry Act (PIA, 2021), leading to the creation of the NMDPRA may have raised some uncertainty on the continuation of the bridging scheme; whether or not bridging funds will continue to be paid to beneficiaries.
He stressed further that NARTO as well as other stakeholders should not panic because all verified bridging obligations will be honoured and paid by the Authority.
The National President, NARTO, Alhaji Yusuf Lawal Othman, earlier informed the NMDPRA of the outstanding payments being owed its members by the Federal Government.
He expressed concern over the fact that some members were losing interest in the business of transporting PMS, which according to him, was no longer profitable.
To this end, he made an appeal for the upward review of the bridging funds on the pricing template.
He urged Government to put in place policies that will not only address the current dwindling returns on investment but will in addition, stimulate investment in the transportation and logistics of petroleum products in the country.
Mr Ogbugo Ukoha, the Executive Director, Distributions System, Storage and Retail Infrastructure, NMDPRA, urged NARTO to continue being patriotic and ensure that it plays its part in ensuring PMS availability throughout the yuletide period, regardless of its current challenges.