Fuel: Hike in freight rates worsens subsidy
Nigeria would jerk up the under recovery also known as súbsidy payable on the imported petroleum products soon, following the approval of hike in transporters freight rates by President Muhammadu Buhari recently.
The increase in the freight rates takes effect from June 1, 2022.
News Mirror findings show that the hike would not change the pump price of Premium Motor Spirit (PMS) also know as petrol from N165 per litre, it would jerk up the under recovery also known as subsidy payable on the product.
The Nigerian Midstream and Downstream Petroleum Regulatory Authoriy (NMDPRA), which announced the hike maintained that the increase will further encourage Nigerian Association of Road Transport Owners (NARTO) and other
stakeholders to deploy more trucks to transport PMS nationwide to ensure adequate supply of the product.
The approval, according to News Mirror, was after due consultations with industry-wide stakeholdersa t the instance of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (the Authority).
The review was necessitated by the
upswing in the global price of petroleum products especially Automotive Gasoil (Diesel) and its implication on the cost of transporting Premium
Motor Spirit (PMS) nationwide.
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