The Association Cites Economic Constraints in Request for Freight Rate Review
In a move set to exacerbate concerns over fuel availability, the Nigerian Association of Road Transport Owners (NARTO) has instructed all its members to halt petroleum truck operations starting from Monday, February 19, 2024.
The decision stems from NARTO’s plea to oil marketers to reconsider freight rates, which the association claims have not been addressed despite repeated appeals.
Deregulation of the downstream sector, which relinquishes government control over petroleum product prices, has paved the way for private entities to dictate industry decisions. However, NARTO’s recent directive underscores the challenges faced by truck owners amidst the prevailing economic conditions.
In a letter dated February 15, 2024, addressed to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), NARTO outlined its predicament, citing escalating operational costs as unsustainable within the current economic climate.
Despite efforts to engage relevant authorities, including the Major Energy Marketers Association of Nigeria, NARTO asserts that their appeals for revised freight rates have fallen on deaf ears.
“We are deeply constrained to seek the support and understanding of your Union and members towards the excruciating challenges petroleum truck owners are facing with the high operational costs in the Industry,” the statement reads.
The directive, issued by NARTO’s National Executive Council (NEC), implores petroleum truck drivers to adhere to the suspension of loading activities, emphasizing the necessity for collective action to ensure the sustainability of the petroleum haulage business.
NARTO’s decision underscores the urgency for stakeholders to address the underlying economic factors impacting the industry, as the nation braces for potential fuel shortages amidst the escalating standoff between transport owners and oil marketers.
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