Petrol Crisis Looms As Tanker Drivers Announce Possible Halt From Next Week

The Nigerian Association of Road Transport Owners (NARTO) is set to halt operations starting Monday, February 19, according to an official announcement from Alhaji Yusuf Lawal Othman, the National President of the association. Othman cited the unsustainable nature of operating costs as the primary reason for this decision………CONTINUE READING

The press statement revealed that NARTO members have been facing financial losses, making it impractical for them to continue with their current operations. Othman emphasized that the association cannot afford to operate at a loss, and many members have already parked their trucks, with more expected to follow suit.

Efforts by NARTO to seek intervention from key stakeholders in the federal government and the industry, including the Chief of Staff to President Bola Ahmed Tinubu, the Minister of Petroleum Resources, and others, have not yielded positive results. Despite writing letters addressing the unbearable cost of operation, there has been no response from the stakeholders.

Othman highlighted the challenging market situation that NARTO members have endured for several months. He pointed out that the freight rates have remained unchanged since President Muhammadu Buhari’s tenure, despite a significant increase in the dollar exchange rate. For example, the N32 Lagos to Abuja freight rate that was set when the dollar was N650 remains unchanged, even though the current dollar rate is N1,615.

The president further explained the financial strain on NARTO members, detailing the costs involved in both local and bridging operations. He expressed concern about the inconsistency between the increased costs of consumables due to the rising dollar exchange rate and the stagnant freight rates paid to the association.

Othman concluded by highlighting the significant financial burden on truck owners, including the high cost of new and used truck heads and tanks, emphasizing the substantial investment required for each truck in the fleet.