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The Nigerian Association of Road Transport Owners (NARTO) has issued a stern warning, announcing their decision to halt the transportation of petroleum products starting next week Monday. This move comes as a response to the soaring operational costs faced by its members, particularly the skyrocketing price of diesel required to power their trucks.
Speaking from the association’s headquarters in Abuja, NARTO’s President, Yusuf Othman, underscored the unsustainable nature of their current operational expenses. “What we spend on operations exceeds our total earnings, both locally and in bridging,” Othman emphasized, highlighting the dire financial situation faced by NARTO members.
Efforts to seek intervention from key stakeholders, including the Federal Government and industry operators, have thus far yielded no positive outcomes, Othman lamented. Despite numerous letters addressed to high-ranking officials and regulatory bodies, the association has received no response to address their concerns regarding the exorbitant operational costs.
Analyzing the market dynamics, Othman pointed out the discrepancy between the prevailing freight rates and the escalating costs of operation. He noted that while operational expenses have surged due to the depreciation of the local currency against the dollar, freight rates have remained stagnant since the previous administration.
“The disparity is glaring. Operational costs have surged, yet the freight rates remain unchanged,” Othman remarked, emphasizing the urgent need for a revision in the compensation structure for transporters.
Furthermore, NARTO has highlighted a myriad of challenges plaguing the transportation of petroleum products in Nigeria. These include poor road conditions, traffic congestion, inadequate parking facilities, multiple checkpoints, delayed payments, safety concerns, and regulatory ambiguities.
