• Friday, March 29, 2024
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We have paid oil marketers N58 billion ‘bridging costs’ – FG

Stocks of major oil marketers hit new highs as subsidy goes

The Federal Government said it has paid petroleum marketers over N58 billion as bridging costs in the last five months.

This follows claims by the Independent Petroleum Marketers Association of Nigeria (IPMAN) that N500 billion in bridging claims could cause a fuel crisis.

A statement signed by the Corporate Communications of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday evening indicated that the regulatory authority made several payments to marketers whose claims have been verified since December 2021.

“So far, over N58 billion has already been distributed to oil marketers out of which about N34 billion went directly to members of IPMAN,” the NMDPRA stated.

The Petroleum Regulatory Authority further said that the administration of bridging payment is a continuous process as hundreds of trucks load and discharge products daily, adding to the claims.

Read also: Fuel scarcity looms as petrol marketers lament delay in N500bn claims

“We would like to emphasise that the total amount paid thus far is the highest ever paid within a 6-month period by previous fund administrators, implying that reimbursement of marketer’s transportation differentials for petroleum products movement from depots to sales outlets is a priority for the NMDPRA.”

The NMDPRA stated that freight rates were recently increased to reflect current market realities and stimulate investments in the transportation of petroleum products in the country to ensure uninterrupted distribution.

The organisation said some of the pending payments are the result of marketers’ refusal to reconcile their claims, despite the Authority’s constant appeal to come for reconciliation whenever there are discrepancies.

“We wish to state that the Authority remains committed to honour and process legitimate and verified bridging claims to ensure product availability nationwide,” the statement read.