Nigeria is on the brink of another fuel scarcity crisis as the Nigerian Association of Road Transport Owners (NARTO) declared its intention to suspend the transportation of petroleum products starting Monday.
The decision comes in response to the surging operational costs faced by NARTO members, primarily attributed to the exorbitant price of diesel required to fuel their trucks for nationwide product transportation.
A formal statement confirming the upcoming action was released by NARTO President Yusuf Othman from the organization’s Abuja headquarters.
Othman cited the unsustainable cost of operations as the driving force behind the decision, emphasizing that operational expenses surpass the total revenue generated by members in local and bridging operations.
“We will have to suspend operations latest from now till on Monday. We cannot continue to operate at a loss. Most people have parked. A lot more are going to the park. But from the point of the association itself, we are going to suspend operations on Monday,” stated Othman.
The association has raised concerns about the stagnant freight rates, which have not seen adjustments despite significant increases in operational costs.
Othman says that even though the cost of essentials has gone up due to our currency losing value against the US dollar, freight prices haven’t changed since the previous government.
Othman highlighted transporters’ financial strain, explaining that meagre payments for local trips barely cover expenses like fuel and maintenance, let alone other operational overheads.
Additionally, NARTO expressed concerns about delayed payments from oil marketers, exacerbating cash flow issues for transporters.
In order to solve issues including restricted access to depots, unclear laws, and troubles obtaining inexpensive financing for vehicles, the group has urged for regulatory reforms.