OBJECTIVES OF POLICY

The policy guidelines on bridging and inter-district operations were developed by the Board to provide standard modus operandi, as well as eligibility criteria for participation and claims management for both schemes. The document provides clear definition for key terms and concepts, whilst specifying general procedures for claims payment. Exception cases to bridging and inter-district procedures are also highlighted herein.

DEFINITION OF TERMS

i. BRIDGING:

Movement of refined petroleum products from a distance of 450 kilometres and above between depots/ tank farms.

ii. INTERDISTRICT:

Movement of refined petroleum products between depots and tank farms, not exceeding a distance of 450 kilometres.

iii. TRANSPORT DIFFERENTIAL ZONE (TDZ) MAP:EQUALIZATION

Map utilized by the Board to ensure national price equilibrium for “white products”, by determining the most efficient route for petroleum products distribution. This takes into consideration, the quickest and safest distance for delivering products from point of loading (source or origin of storage facility) to required delivery destination within the district. The map which consists of nine zones (Zone 1 – 9), is set in concentric circles, with a distance of 50 kilometres separating each circle from subsequent one.

iv. AQUILA:

Automated business platform utilised by the Board for its operations. A full migration from manual operations to the Aquila platform, allows for electronic loading, receiving, processing and payment of marketers’ claims.

v. AREAS OF DEFICIT (NON-AVAILABILITY):

All areas characterised by product scarcity and/or inability to sustain mid and long-term demand with existing supply. These are also known as dry areas.

vi. AREAS OF SURPLUS (AVAILABILITY):

All areas characterised by product surplus and/or ability (wet areas) to sustain mid and long-term demand with existing supply. 

vii. INTERVENTIONS:

Planned activity or series of activities deliberately targeted at addressing product shortage in identified areas especially during Nationwide crisis.

ELIGIBILITY FOR PAYMENT OF CLAIMS

Due process verification of document and procedures for conducting transactions are captured in the Board’s business guidelines. However, the eligibility summary is provided below.

i. REGISTRATION WITH THE BOARD:

Registration on the Board’s electronic business solution (Aquila), backed by validity and authenticity of claims (Due process verification).

ii. RECEIPT OF BRIDGING ALLOWANCE:

Claims for marketers shall ONLY be paid following receipt of bridging allowance by the Board. This is determined by prevailing bridging rates.

Management has tied the payment of bridging claims of Retail Marketers to the bridging allowance paid to the tank farm Marketers to ensure liquidity in the system.

iii. NATURE AND RELEVANCE OF CLAIMS:

In addition to item ii above, the Board will only attend to claims of bridging and/or inter-district operations carried out from areas of availability or surplus (wet areas), to areas of non-availability or deficit (dry areas).

iv. MOVEMENT FROM ‘‘WTW’’ (WET TO WET) AREAS

Where a Marketer decides to move a product from a wet area to another wet area, such transaction shall be regarded as unqualified for bridging.

v. DEPOT OWNERS AND THIRD PARTY TRANSACTIONS

Instances where Marketers own depots as well as retail outlets, the following scenarios shall be applied;

  1. Claims from wet areas to wet areas shall not be entertained.
  2. Claims from wet areas to dry areas shall only be paid after the Marketer has remitted bridging allowance to the Board.

vi. DEPOT OWNERS AND RETAIL OUTLETS

Bridged products from wet areas to wet areas will not be eligible if the same Marketer owns both depot and the outlet

vii. THROUGHPUT

Depot owners MUST ensure that the owner of a product provides evidence of bridging allowance payments to PEF (M) B before truck-out; where there is default there shall be no truck-out.

ELIGIBILITY FOR PAYMENT OF CLAIMS

The Board has a responsibility to prudently manage and control the scarce resources in the fund; hence these guidelines shall be followed strictly EXCEPT;

Where there are emergency situations to the aforementioned guidelines which may be considered by the Board, following duly signed approval/directives of the Honourable Minister of Petroleum Resources.