Petrol tanker drivers under the aegis of Nigerian Association of Road Transport Owners (NARTO) have threatened to discontinue lifting petroleum products beginning from next week Monday, citing high cost of operations.
If this happens, Nigeria may witness another round of fuel scarcity.
NARTO President, Yusuf Othman, in a statement, said NARTO members had been operating at a loss and it was no longer sustainable for them to endure the losses, adding that members of the group would park their trucks from Monday.
“Why? It is because what we spend on operations is more than what we get in total, both in local and bridging,” he stated.
“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 park. But from the point of the association itself, we are going to suspend operations on Monday,” he stated.
He said NARTO’s efforts to get the intervention of key stakeholders, the Federal Government and industry operators had not yielded positive results, in spite many correspondences to them, with “no response.”
Analysing the market situation, which the members have endured for several months, he stated that the same freight rate that applied during former President Muhammadu Buhari’s administration was still subsisting.
“The Lagos to Abuja freight rate that was implemented when the dollar was N650 is still retained now that dollar is N1,615. Everybody is aware that all our consumables in terms of operation are not produced in the country.
“So, by virtue of the rate of dollars, every consumable has increased. But the freight they are paying us has been the same since Buhari’s time. So how is that feasible? During Buhari’s time, one dollar was N650. Today, dollar is N1,615. The average freight from Lagos to Abuja is N32,” he stated.
Othman further explained that “what I mean by local is that when you load in Lagos, you discharge in Lagos. And bridging means that when you load from Lagos, you come to Abuja. Lagos to Lagos, we are paid N120,000.
“AGO (diesel) alone to distribute fuel within Lagos is N140,000 because it is N1,400/litre. So, they give you N120,000 and you spend N140,000. So how do you want to operate? You’ve not talked about the cost of vehicles, cost of loading, driver’s allowance. That is for local.”
He stated that the cost of moving products out of Lagos or Warri to other states was far higher than what the government was paying to tanker drivers as bridging claims.
NARTO has expressed several concerns regarding transporting petroleum products in Nigeria, impacting both their members and the overall efficiency of the process.
It has complained of poor road conditions, as frequent potholes, dilapidated bridges, and lack of proper maintenance, leading to increased wear and tear on vehicles, higher running costs and longer journey times.
The association has also raised concern about traffic congestion, particularly around ports and depots, as this adds significantly to delivery delays and further increases operational costs.
On inadequate parking facilities, NARTO had stated that the lack of safe and designated parking areas often forced drivers to park in unsafe locations, leading to security risks and fatigue.
Another issue is delayed payments, as late payments from oil marketers create cash flow problems for transporters.
Also the association has called for safety, because the theft of petroleum products, pipeline vandalism and other security threats create risks for drivers and equipment.
On policy and regulatory concerns, NARTO had observed that some depots limit access to specific transporters, impacting competition and efficiency.
It had stated that inconsistent or ambiguous regulations could lead to confusion and enforcement challenges, adding that transporters often struggled to access affordable financing for vehicle maintenance and upgrades.
