Petroleum Regulatory Authority Finally Finds Solution to Petrol Scarcity, Shares Good News
- To expedite national distribution, the NMDPRA said petroleum supplies are being sent to depots around the nation
- The authority’s CEO said that safety issues brought on by choppy seas halted ship-to-ship transfer and floods impeded truck loading
- He stressed that the authorities is working to shift the offshore supplies to onshore depots to reduce the shortfall
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
To solve the ongoing petrol scarcity in some areas of the country, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that petroleum products are being shipped to depots around the country to speed nationwide distribution.
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This was revealed to reporters by the company's chief executive officer, Farouk Ahmed, following a meeting with President Bola Tinubu at the State House in Abuja.
Ahmed clarified that safety issues brought on by choppy seas, which halted ship-to-ship transfers, and floods in Lagos, which impeded truck loading and transportation, were the reasons behind the most recent disruptions in petroleum supply.
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In a The Nation report, Ahmed reassured that the nation has a 20-day petroleum supply, made up of eight days on land and 12 days offshore, despite these difficulties.
To lessen the scarcity, he emphasized that the authority is striving to move the offshore supply to onshore depots.
It is anticipated that the movement of petroleum products by ships to depots in other regions of the nation will expedite the accumulation of onshore stock, guaranteeing a steady supply of fuel across the country.
Landing cost of petrol increases
Legit.ng reported that Nigerians continue to grapple with petrol scarcity as the landing cost of Premium Motor Spirit (PMS), also known as petrol, has surged to a staggering N978 per litre.
At the black-market rate of N1,500 per dollar, findings showed the landing cost of petrol, which includes the product’s international price, shipping, insurance, and other charges, increased to N978/litre from N720/litre in October 2023.
On Monday, the naira plunged to a three-month low of N1,530 per dollar on the black market, as end users' desire for the dollar increased.
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Source: Legit.ng
