NARTO pause heighten fuel scarcity concerns

Nigeria is once again bracing itself for a potential fuel scarcity crisis with the Nigerian Association of Road Transport Owners (NARTO) announcing its intention to suspend the transportation of petroleum products starting Monday, February 19, 2024.

The looming crisis stems from the steep operational costs faced by NARTO members, primarily attributed to the skyrocketing price of diesel required to fuel their trucks for nationwide product transportation.

Members of NARTO, who play a vital role in the distribution of petroleum products across the nation, have expressed grave concerns over the escalating diesel prices. According to oil marketers, the current diesel price ranges betwper litre, varying by location.

Yusuf Othman, the President of NARTO, released an official statement from the Association’s headquarters in Abuja, confirming the impending action. Othman emphasized that the decision to park their trucks starting Monday is a direct response to the unsustainable operational costs burdening NARTO members.

Othman stated: “We are compelled to take this action because our operational expenses outweigh our total earnings, both locally and in bridging. We cannot afford to continue operating at a loss. Many of our members have already parked their trucks, and more are following suit. As an association, we will suspend operations on Monday.”

One of the primary issues highlighted by Othman is the stagnant freight rates, which have failed to Fuel scarcity crisis: Fuel scarcity crisis: Fuel scarcity crisis: Fuel scarcity crisis: Fuel scarcity crisis: Fueadjust despite significant increases in operational costs. He pointed out that while the cost of essential consumables has surged due to currency depreciation, freight rates have remained unchanged since the previous administration.

“For instance, the freight rate from Lagos to Abuja has remained stagnant since the tenure of former President Buhari, despite the nearly tripling of the dollar exchange rate. This inconsistency is unsustainable for our members,” he explained.

Othman further underscored the financial strain on transporters, citing instances where operating costs surpass earnings. He noted that the minimal payments received for local trips barely cover expenses such as fuel and maintenance, let alone other operational overheads.

In addition to these challenges, NARTO has raised concerns about delayed payments from oil marketers, exacerbaing cash flow problems for transporters.

Also Read: Fuel scarcity looms in Lagos, environs as marketers shut stations

The association has also called for regulatory reforms to address various issues, including limited access to depots, ambiguous regulations, and difficulties in accessing affordable financing for vehicle maintenance and upgrades.

The impending halt in petroleum transportation underscores the urgent need for concerted efforts by stakeholders to address the underlying issues plaguing the sector. Failure to do so risks plunging the nation into yet another debilitating fuel scarcity crisis, with severe repercussions for the on the economy and the populace at large