The Nigerian Association of Road Transport Owners (NARTO) has instructed all its members to stop loading petroleum trucks starting on Monday, February 19, 2024.
This decision was made after NARTO asked oil marketers to reconsider the rates they charge for transporting goods.
Despite the government’s decision to deregulate the downstream sector, oil marketers have not agreed to adjust their rates as requested by NARTO.
Deregulation means that the government no longer controls the prices of petroleum products, allowing private companies to make decisions in the industry.
In a letter dated February 15, 2024, NARTO informed the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) that they could not continue operations due to the current state of the economy.
The association has made several attempts to have the freight rates for their operations reviewed, but they have not seen any positive outcomes.
“We are deeply constrained to seek the support and understanding of your Union and members towards the excruciating challenges petroleum trucks owners are facing with the high operational costs in the Industry,” the statement reads.
“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 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.”
The association further added that “there is definitely no way we can continue in this business within the context of the current economic situation in the country”
