The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reassured
Nigerians that there is PMS sufficiency of over 1.6 billion litres as of 26th January 2023 both on land
and marine.
NNPC has additionally made firm commitment to supply more volume of PMS for the months ahead to
guarantee national energy security and nationwide availability at the government regulated price.
The current distribution hitch is heightened by activities of cross-border smugglers, who divert PMS
meant for Nigerian market to neighbouring countries where PMS prices are significantly higher than
Nigeria’s regulated price. We are engaging and collaborating with the Nigeria Customs Service to address this issue.
The price arbitrage between Nigeria and neighbouring countries has continued to grow due to
inflation and the regional impact of the Russia-Ukraine conflict on the global energy value chain
including international freight rates and coastal vessels charter rates.
We wish to bring to public knowledge that the ongoing government effort to rehabilitate strategic
Nigerian roads ahead of the rainy season has necessitated rerouting of tanker trucks conveying
petroleum products to alternative roads, therefore increasing transit time and associated cost of product
transportation.
NMDPRA and key stakeholders including NNPC have put various measures in place to address the
issues, including:
1. Modest adjustment in the cost of product transportation to cater for the impact of high AGO price on transporters, while making special provision of diesel to marketers at a reduced price.
2. Automation of products sales interface.
3. Emplacement of a monitoring system in collaboration with government security agencies for distribution of products to retail outlets
4. Extended operating hours both at the loading depots and some selected filing stations.
5. Rehabilitation of critical fuel distribution road network through Federal Government’s tax credit
scheme by the NNPC
6. Regular stakeholders’ engagements; among others.
We have reinforced our monitoring teams and appropriate sanctions to checkmate the activities of
erring marketers who are distorting our planned product flow to designated outlets in order to
profiteer from price arbitrage have been emplaced.
As a medium to long term measure, cost-efficient means of transportation, including Autogas conversions and pipeline rehabilitation, are being implemented. This will be complemented by end-to-end process automation across the value chain.
NMDPRA appreciates the collaborative efforts of some patriotic oil marketing companies who, despite
the glaring incentıves to engage in illegal price arbitrage, have stood steadfast and operated responsibly within the approved pricing limits.
We would like to reassure all Nigerians that NMDPRA as a responsible regulatory authority
would continue to work passionately to ensure energy security and continuous collaboration with all
the relevant stakeholders to restore normalcy in the Premium Motor Spirit supply and distribution
network within the shortest possible time.
Thank you very much and God bless.
Signed:
Corporate Communications,
NMDPRA
