Transport Owners Threaten Strike over Rising Operational Costs

Emmanuel Addeh

The Nigerian Association of Road Transport Owners (NARTO) which is responsible for hauling petroleum products across the country, said yesterday that its members may be forced to withdraw services if the federal government fails to address the rising operational costs incurred by the organisation.

There had various conversa-tions surrounding the growing cost of freight, with the government promising an increase last year, a development the transport owners said will help them improve their services and meet costs.

In a statement made available in Abuja, the association’s National President, Yusuf Othman, lamented that members of the association were finding it difficult to sustain the business because the freight rate is still very regulated.

According to him, the situation was even made worse because the monies were paid in arrears, adding that the transport owners would have no choice than to stop their services if the issue persists.

“And then we will also tell them (members) to park if nothing is done because we can’t operate in such a way. Transporters whose freight rate is fixed and regulated cannot sustain the business if nothing is done.

“We can’t operate. We can’t work if nothing is done to increase the freight rate. The condition is unbearable because of the rising cost of diesel,” he maintained.

Describing the business environment as unbearable, Othman urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to urgently increase the freight rate to reflect the present cost of Automotive Gas Oil (AGO) diesel and spare parts.

He disclosed that the ex-depot cost of diesel soared to N401 per litre just on Monday, pointing out that the price may hit N420 per litre at the filling stations if something is not done urgently.

The National President of NARTO called on the NMDPRA Chief Executive Officer (CEO), Mallam Farouk Ahmed, to urgently convene a stakeholders’ meeting to increase the freight rate and address other pressing issues of cost of operation.

“We are appealing to the CEO of the downstream regulatory agency. He has to sit down with us immediately and ensure that the freight rate is increased to reflect the rising cost of diesel and other spare parts,” he noted.

Othman added: “We have a problem. Today, the price of AGO ex-depot is N401 per litre. It means that in Abuja, Kaduna, Kano, it will reach N420 to N430. At the filling station it will reach like N450.”

Othman stated that NARTO could not fix the rate arbitrarily, explaining that the authorities should act as quickly as possible to avert any situation that may lead to a strike.

“I cannot fix the rate. If I talk now the price will be higher. It is just to regulate our rising operation cost. It is as simple as that. Otherwise, our people have parked their trucks and more people are going to park,” he said.