The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it is partnering with major oil marketers to put some kind of trackers that monitor the movement of products, as well as the dispensing and accounting for the volumes sold or transported.
The Authority Chief Executive (ACE) of NMDPRA, Engr Farouk Ahmed, who briefed newsmen after a meeting with the major marketers, said the move would enable the regulator and marketers to have a very good estimate of fuel consumption, adding that currently they relied heavily on trucking rather than on the actual delivery into retail outlets or other consumption areas.
The meeting had in attendance key marketing companies, particularly those which had very high volumes of importation and products sales and distribution in the country.
Ahmed addressed concerns around differential dispense prices of petrol at retail outlets across the country.
He said: "The cost of diesel has increased the transportation costs or logistics costs, but that's not to say the product should be sold beyond and over a reasonable price.
"We as a regulator, since the deregulation of the sector, are not meant to depress or suppress prices; we let the market fundamentals work but we are there alongside with FCCPC to ensure that the consumer is not taken advantage of.
"In as much as we had a supply gap and there was a bit of tightness in the market, we now happily see a lot of improvements in the supply because the logistics issues faced by the NNPCL has been addressed by them and we are seeing a good flow of petroleum products in the country particularly premium motor spirit, and I also believe that this is just maybe a temporary gap that has been already closed, and also we will keep monitoring the market to ensure that the consumers are not taken advantage of.
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The ACE also disclosed that the meeting discussed the CNG revolution and the collective efforts needed to ensure that they reduced the burden on the economy by having an alternative to PMS which had become very costly due to the exchange rate fluctuation.
He said: "We are working with the producing company, our sister agency NUPRC, and NNPC to ensure that, as well as GACN to ensure that the product is also available at a reduced cost or at a competitive cost to the consumers so that we can align with Mr President's objective of transforming the country into more CNG for mobility rather than depending heavily on PMS."
