Process of NTA Claims
The National Transportation Allowance (NTA) or Equalisation scheme is the original function of the Board at inception and was restricted to eight (8) major marketing companies at inception. Like the Bridging and inter-district schemes, it has been extended to the existing six (6) major marketing companies, Depot and Petroleum Product Marketers Association (DAPPMA) operators and over 9,000 independent Petroleum Marketers Association of Nigeria (IPMAN) members.
For effective implementation of the equalisation function to achieve the uniform pricing of petroleum products, the country was divided into depot district, and as such district were further sub-divided into zones. A depot district is the part of the country served by particular depot. There are presently 21 depot districts. The districts are further sub divided into bands of 50 kilometers each known as zones. These zones are progressive bands of 5okm radius, with the depots as the centre-point to the maximum of 9 (nine) zones, that is a total of 450km. Each outlet is allocated to a depot, and the distance between them applied in determining the transport cost of moving the product, which is the only variable factor in uniform pricing. This arrangement is affected by the use of the Transportation Differential Zone (TDZ) Map.
To effect equalisation, all marketers are required to submit returns to the PEF (M) B in relation to products lifted from each depot to the respective zones within the district. The net effect of the returns culminates in either Claims from, or Contribution to the fund.
For every litre of petroleum product transported within zones 1 and 2, the marketer has a Transport Allowance built into the price of the products which the marketers holds in trust on behalf of the consumer, and is required to turn it over to the Board. Also for every liter of product transported from zone 3 through to zone 9, the additional submits claims to PEF (M) B for the additional Transportation Average (NTA). The Board will thus reimburse the marketer for the losses incurred, solely and exclusively, for transporting the products for sale at a uniform price in those zones.
CHECKLIST FOR THE PROCESSING OF EQUALISATION/INTER-DISTRICT CLAIMS
- NTA Acknowledgement form endorsed by the Depot Representative)
- Letter of request for payment of claim by Marketer
- Appropriate PEF stamps at loading depot Meter Ticket
- DPR stamps
- NNPC stamp at loading depot
- Marketers Waybill
- Form BR/RD II
- Product Out-Turn Letter/Form (in the letter headed paper of the outlet (station) the product is discharged, duly stamped and signed by Station Manager).
- NTA claims made with Bridging claim simultaneously (the NTA claim comes with photocopy of documents that will require endorsement).
- Unaccompanied NTA claims should be made with original documents.
- Claims must be filed within 10 days.