Mr. Ahmed A. Bobboi, Executive Secretary of Petroleum Equalisation Fund

Nigeria to adjust petroleum pricing to meet transportation demands: PEF

*The government’s Petroleum Equalisation Fund discloses the proposed review will not necessarily increase the pump price of the petroleum product, but will cushion the plight of product transporters in the country

Isola Moses | ConsumerConnect

In order to reduce the costs of transportation, road maintenance, and to provide succour for the petroleum products transporters in the country, the Federal Government says it is considering adjusting the Premium Motor Spirit (also called petrol) template.

The government stated the move is to address the demands of members of the Nigerian Transport Owners Association (NARTO), agency report said.

It is noted that members of the Association withheld their services in the country recently, so as to press home their demands.

Mr. Ahmed A. Bobboi, Executive Secretary of the Petroleum Equalisation Fund (PEF), who said this at an engagement with reporters in Abuja, FCT, noted that the review would not necessarily increase the pump price of the product, but it would cushion the plight of transporters.

The PEF Executive Secretary stated since members of the association withheld their services over the non-increment of their cost of bridging to N9.11K, the Federal Government summoned a general meeting for the stakeholders.

“We are looking for a way of coming up with even if it is a temporary measure to review the template without adding anything to cushion and provide succour for the transporters,” said Bobboi.

According to him, the Federal Government is considering the possibility of transporting petroleum products for marketers via rail across Nigeria.

It is also planning for the transportation (bridging) of gas to different parts of the country, he added.

On bridging, Bobboi noted the concept means the transportation of petrol to all over the country to ensure that the product is sold at the same price.

He further said the PEF categorises and pays for the transportation according to the distance.

However, he observed the government has to wait till the framework for implementation of the gas bridging to be put in place with the passage of the Petroleum Industry Bill (PIB) that is now in the National Assembly (NASS).

As regards transportation of products by rail, the Executive Secretary also said that state governments are already complaining that heavy duty transportation is destroying the roads.

Employing the trains to convey petroleum products will reduce the cost of transportation and the cost of road maintenance, save the roads and increase the quantity that can be transported, he submitted.

Bobboi added: “We are also looking at the possibility of getting marketers to transport products by rail. The government is reviving many critical rail lines.”

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