The Federal Government has commenced discussions with representatives of the organised labour on how to raise the freight rate of the Premium Motor Spirit (PMS) petrol from N7.51 per litre to N9.11 per litre, the Executive Secretary of the Petroleum Equalisation (Management) Board (PEF), Alhaji Ahmed Bobboi, has disclosed.
The plan will amount to 21.30 per cent hike in freight that is a Petroleum Products Pricing Regulatory Agency (PPPRA) component of the total cost of the petrol.
Bobboi disclosed this at the 21st Annual General Meeting (AGM) of the National Association of Road Transport Owners (NARTO) that held at the Zuma Rock Resort, Abuja-Kaduna expressway in Niger State on Thursday.
In his virtual goodwill message, the Executive Secretary of PEF said the agency was waiting for the Federal Government’s approval before it would begin the implementation of the new freight rate of N9.11 per litre.
Besides, he revealed that the Federal Government was expecting the labour unions to revert to it on the agreement it has taken from the joint committee set by the government on the hike in the price of petrol and electricity.
Asked to comment on the implementation of freight increase, the Nigerian National Petroleum Corporation (NNPC)’s Group Managing Director (GMD), Malam Mele Kyari, said upon the conclusion of the deliberations with labour, the Federal Government will announce the effective date in line with the pricing template.
Represented by the corporation’s Chief Financial Officer, Umar Ajiya, he told reporters at the ceremony that: “The Executive Secretary of PEF made a statement that there is an on-going engagement between the Federal Government and the labour, and at the end of that process, the government will make adequate pronouncement as to the effective date of that figure as contained in the pricing template”.
Earlier in his goodwill message, Kyari commended the association for its operations despite the daunting challenges in the country.
He said; “we are not unaware of the conditions of our roads, the insecurity, the highways, and also a number extortions do take place along these highways.”
He urged the association to ensure that its trucks and drivers comply with safety standards at all time which has been put in place by the regulator towards ensuring hitch free operation at the depot and on the highway.
He promised that the NNPC will continue to cooperate with the association to resolve all the challenges impacting in the distribution of products in the country.
Kyari noted that: “We will continue to make payment to PEF for deductions of dues due to you so that PEF will continue to pay your members as at when due.”
The GMD urged the transport owners to ensure that their tankers and drivers meet the safety standards set by government regulators for the industry to curb accidents involving petrol tankers.
