Nigeria is on the brink of yet another fuel scarcity crisis as the Nigerian Association of Road Transport Owners (NARTO) has declared its intention to halt the transportation of petroleum products from Monday.
The decision, announced by Yusuf Othman, the President of NARTO, emanates from the escalating operational costs experienced by NARTO members, largely attributed to the exorbitant price of diesel necessary to fuel their trucks for product transportation nationwide.
Diesel prices have soared to unprecedented levels, ranging between N1,250 to N1,400 per litre, according to oil marketers, prompting grave concerns among NARTO members who play a pivotal role in the distribution of petroleum products across the nation.
Yusuf Othman, speaking from NARTO’s headquarters in Abuja, conveyed the gravity of the situation, highlighting the unsustainable nature of current operational costs. He emphasized that the decision to park their trucks starting Monday is a direct response to the dire financial challenges faced by NARTO members.
Othman elucidated, “We will have to suspend operations latest from now till Monday. We cannot continue to operate at a loss. Most people have parked. A lot more are going to the park.”
NARTO has been in dialogue with various authorities, including the Chief of Staff to President Bola Tinubu and the Minister of Petroleum Resources, expressing their concerns about the exorbitant cost of operations and stagnant freight rates.
Othman underscored the discrepancy between operational costs and earnings, noting that while expenses have surged due to currency depreciation and rising fuel costs, freight rates have remained stagnant since the previous administration. He emphasized that the current economic environment is unsustainable for NARTO members.
Moreover, NARTO has raised alarms regarding delayed payments from oil marketers, exacerbating cash flow problems for transporters. The association has called for regulatory reforms to address challenges such as limited depot access, ambiguous regulations, and difficulties in accessing affordable financing for vehicle maintenance and upgrades.
The looming suspension of petroleum product transportation by NARTO signals a potential fuel crisis, underscoring the urgent need for comprehensive solutions to alleviate the financial burdens faced by transporters and ensure the stability of Nigeria’s fuel supply chain.
