Tanker Drivers Ponder Halting Petrol Lifts Starting Monday

Tanker Drivers Ponder Halting Petrol Lifts Starting Monday – The Nigerian Association of Road Transport Owners (NARTO) has declared its intention to suspend operations starting Monday, February 19, according to an official statement issued by Alhaji Yusuf Lawal Othman, the National President of the association.

Othman emphasized that the decision to halt operations stems from the burdensome operating costs faced by the members, stating, “Why? Because what we spend on operation is more than what we get in total: both in local and bridging.”

He revealed that sustained operational losses have rendered their current situation unsustainable, leading to the collective decision to park trucks. Othman stated, “We cannot continue to operate at a loss. Most people have parked. A lot more are going to park. But from the point of view of the association itself, we are going to suspend operations on Monday.”

Efforts by NARTO to seek intervention from key stakeholders in the federal government and the industry have proven fruitless.

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Othman disclosed that letters detailing the unbearable cost of operation were sent to various officials, including the chief of staff to President Bola Ahmed Tinubu, minister of Petroleum Resources, director general of the Department of State Services (DSS), Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) chief executive officer, Nigerian National Petroleum Company Limited (NNPC) group chief executive officer, and the marketers. However, no positive response has been received.

Analyzing the market situation, Othman highlighted the stagnant freight rates, noting that the N32 Lagos to Abuja freight rate implemented during President Muhammadu Buhari’s tenure still persists despite the significant depreciation of the Naira.

He pointed out, “During Buhari’s time, the dollar was N650. Today, the dollar is now N1,615. The average freight from Lagos to Abuja is N32.”

Detailing the financial challenges faced by truck operators, Othman illustrated the incongruity between operational costs and freight rates.

He explained, “If you have a truck of 40,000 litres, you are talking of N1,280,000-N1,216,000. There is a total loss of N114,000.”

Highlighting the broader economic impact, he emphasized the strain on the transportation industry due to escalating costs of consumables and operational necessities. Othman underscored the need for a comprehensive reassessment of the economic landscape to ensure the sustainability of the road transport sector.

Source: LIB