The Nigerian Association of Road Transport Owners (NARTO) has issued a stern warning, stating they will halt the transportation of petroleum products starting next week Monday due to skyrocketing diesel prices.
The association, representing commercial transport operators across Nigeria and the West African sub-region, cited unsustainable operational costs as the primary reason behind their decision.
Yusuf Othman, President of NARTO, expressed the association’s frustration, stating, “What we spend on operations is more than what we get in total, both in local and bridging.” Othman highlighted the dire financial situation faced by NARTO members, emphasizing that operating at a loss is no longer feasible.
Efforts to seek intervention from key stakeholders, including the Federal Government and industry operators, have yielded no positive results, according to Othman. Despite reaching out to authorities and relevant agencies, the association received no response to their concerns regarding the exorbitant cost of operations.
Othman shed light on the disparity between operational expenses and compensation, noting that freight rates have remained unchanged since previous administrations, despite significant increases in the cost of essentials such as diesel. He emphasized that the current freight rates are inadequate to cover the rising expenses incurred by transporters.
Highlighting the disparity in compensation for local and bridging operations, Othman revealed, “AGO (diesel) alone to distribute fuel within Lagos is N140,000 because it is N1,400/litre. So, they give you N120,000 and you spend N140,000. So how do you want to operate?”
NARTO’s threat to suspend operations poses significant implications for the transportation of petroleum products across Nigeria, potentially leading to disruptions in supply chains and exacerbating existing challenges within the fuel distribution network.
