Concerns loom over the possibility of a severe fuel shortage next week, as the Nigerian Association of Road Transport Owners (NARTO) stands poised to halt petrol lifting operations by Monday, February 19, 2024.
With diesel prices soaring between ₦1,250 to ₦1,400 per litre, NARTO members face unsustainable operational expenses, prompting them to consider a collective shutdown.
Yusuf Othman, President of NARTO, emphasized the dire financial strain on members, citing operational costs outweighing earnings.
“It is because what we spend on operations is more than what we get in total, both in local and bridging.
“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.
Despite appeals to oil sector stakeholders and President Bola Tinubu, their pleas have gone unanswered.
Othman lamented the disparity between operational expenses and earnings, exacerbated by stagnant freight rates amidst skyrocketing dollar exchange rates.
Highlighting the stark financial challenges, Othman detailed the exorbitant costs incurred in distributing diesel within Lagos, far surpassing the compensation received by tanker drivers.
“The Lagos to Abuja freight rate that was implemented when the dollar was ₦650 is still retained now that dollar is ₦1,615.”
“So, by virtue of the rate of dollars, every consumables 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 ₦650. Today, dollar is ₦1,615,” he explained.
He underscored the glaring discrepancy between operational costs and government payouts for bridging claims, especially for interstate deliveries.
“AGO (diesel) alone to distribute fuel within Lagos is ₦140,000 because it is ₦1,400/litre. So, they give you ₦120,000 and you spend ₦140,000. 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.
“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 ₦120,000.”
