The Nigerian Association of Road Transport Owners (NARTO) has advised all of its members to withdraw their petroleum trucks from product-loading activities beginning Monday, February 19, 2024.
The association’s move comes in response to the industry’s high operational costs, which prompted it to recommend that oil marketers reassess freight pricing.
This disclosure is contained in a letter dated February 15, 2024, signed by the National President, Othman Yusuf, and delivered to the National Union of Petroleum and Natural Gas Workers (NUPENG).
The letter, titled ‘Notice of cessation of operation’, was also issued to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Department of State Security (DSS), and the Executive Secretary of the Major Energy Marketers Association of Nigeria (NEMAN).
Oil marketers refused to review rates.
NARTO stated that despite the liberalization of the downstream industry, oil marketers have declined to evaluate the rates.
It declared that it can no longer continue to operate due to the status of the economy.
The group stated that multiple efforts to get the freight rates for its businesses evaluated have had no beneficial outcomes.
What is NARTO saying?
The statement from NARTO reads:
“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.
“As you are already aware of several efforts we have made to secure negotiations for appropriate and commensurate freight rates for our operations from all conceivable authorities concerned in the industry, most especially the Major Energy Marketers Association of Nigeria but which have received no positive responses from them.
“We have no other options but to write to inform you that the NARTO National Executive Council (NEC) has resolved to direct all our members not to make their Petroleum Trucks available for Petroleum Products loading activities with effect from Monday, 19th day of February 2024.
“In the light of this directive, we implore all our employees (Petroleum Truck Drivers), who are your members to show maximum cooperation, support and understanding to our collective efforts for continued sustainability of the Petroleum Haulage business and effective service delivery by ensuring adequate and immediate compliance.
‘’There is definitely no way we can continue in this business within the context of the current economic situation in the country.’’
