Bridging is the movement of petroleum products by road over a distance of 450km and beyond. This was initially established to address supply and distribution challenges during Turn Around Maintenance (TAM) of the refineries, wherein the government sought to encourage and support Marketers in transporting petroleum products nationwide.
Although Bridging was meant to be a temporary solution until the refineries were producing back at full capacity, the state of the refineries has worsened over the years resulting in Bridging becoming the norm rather than the exception. In addition, pipeline vandalisation reached a point where trucks have become the major source of distributing petroleum products in recent times.
The initial projection was to have a maximum of 10% of total petroleum products Bridged while the remaining portion will be pumped through the pipelines. However, trend analysis indicates that the Bridging of products has consistently increased over the years to over 40%.
Road haulage by trucks has since become the predominant means of supply and distribution of PMS across the country.
Under this scheme, Marketers are reimbursed to cover the effect of transportation cost of moving products from Depot to Depot, for distances more than 450km.
National Transportation Allowance (NTA) Collections and Claims Settlement
NTA is mainly collected from two kinds of product transactions: Bridged products and Local transactions.
- Bridged Products: National Transportation Allowance (NTA) on Bridged products are deducted at source from Marketers that are within Zone 1 and 2 (Claim Zone); while those within Zone 3-9 (Contribution Zone), are reimbursed for both the NTA and Bridging elements of their transactions.
- Local Transactions: This refers to transactions that involve the direct movement of products from loading Depots to retail outlets. This is predominant in the south, owing to the collapse of the national pipeline network. All Marketers in this category are expected to pay NTA upfront at the point of loading and seek reimbursement afterwards if their retail outlets fall within the Claim Zones
Benefits of NTA
- A key price stabilisation mechanism for cushioning the transportation cost differentials incurred by Marketers;
- Helps to minimize petroleum product price discrimination;
- Enhances economic stability through appropriate pricing;
- Fulfils statutory obligation as captured in the enabling act, and
- Provides Supplementary funding source to argument the Bridging fund
Checklist for the Automated Processing of Claims (Bridging, Inter-district and NTA)
- Bridging Acknowledgement Form (endorsed by the Depot Representative)
- Meter ticket/ Waybill/ Invoice/ Loading ticket
- PEF(M)B loading and receiving stamps on the above duly signed and dated by PEF(M)B depot representative
Stakeholders’ stamps at loading and receiving depots.
- Product Out-Turn Report/form (in the letter-headed paper of the outlet station and duly stamped and signed by the Station Manager), confirming that the product was discharged at the outlet.
- Meter ticket required for NTA Local Liftings signed by the Receiving Depot Representative and Stakeholders.
- Products must be delivered within ten (10) days of lifting.
- Cases of breakdown and final date of delivery of product should be reported within 10days from the date of breakdown to the Receiving Depot representative.
PEF(M)B reserves the right to change any of the above without prior notice.