The Nigerian Association of Road Transport Owners (NARTO) has threatened to down tools on Monday, February 19 amid a worsening fuel crisis that hit Nigeria since subsidy removal last year 2023.
A press statement issued by NARTO‘s National President, Alhaji Yusuf Lawal Othman on Monday, partly read.
“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.
Othman highlighted the association’s efforts, noting that they have communicated their concerns to various authorities, including the Chief of Staff, the Honourable Minister of Petroleum Resources, the DG SSS, the GCEO, and the Authority Chief Executive, but got no response.
The national president detailed challenges faced by the transport sector, citing the impact of the increased cost of consumables due to the depreciation of the local currency against the dollar.
He further illustrated the financial burden by detailing expenses, such as loading costs, driver allowances, and operational expenses, leading to a substantial loss in revenue.
“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 consumables has increased. But the freight they are paying us has been the same even during Buhari’s time.
“So how is that feasible? During Buhari’s time, dollar was N650. Today, dollar is noe N1,615. The average freight from Lagos to Abuja is N32.”
“What I mean by local, you load Lagos, you discharge in Lagos. And bridging, you load from Lagos, you come to Abuja. Lagos to Lagos, we are paid N120,000.
“AGO alone to distribute fuel within Lagos is N140,000 because it is N1,400 per litre. So, they give you N120,000 and you spend N140,000. So, how do you want to operate? “Talk less of cost of vehicles, cost of loading, driver’s allowance. That is for local. For bridging, Lagos to Abuja, they gave us N32.
“If you have truck of 40,000 litres, you are talking of N1,280,000-N1,216,000. Less 5% of the amount of N1,280,000 Withholding Tax N64,000. Less 55,000 loading expenses and 15,000 driver allowance. Total expenses N134,000 while balance is N1,146,000. AGO is N1400 for 900 litres, totalling N1260,000. There is a total loss of N114,000.
“The diesel that you use from Lagos to Abuja is 900 litres. So when you use 900 litres at 1,400, that will be N1,260,000. So it is by far more than what are paid. Meanwhile the cost of a truck New truck head and tank is N95 million and used is N50million. So imagine the Amount invested on each truck?,” he detailed.
Meanwhile, oil marketers have declined requests to comment on the strike action threat by the petrol tanker drivers.