Scarcity looms as NARTO directs tanker drivers to halt petrol transportation

Business a.m

Nigeria is facing the threat of a looming fuel shortage as the Nigerian Association of Road Transport Owners (NARTO) has issued a directive to its members to suspend the loading of petroleum products as of Monday, February 19, 2024. 

NARTO’s decision to withdraw its petroleum trucks from loading activities is a direct response to its request for oil marketers to review the freight rates they charge for transporting petroleum products.  

According to the association, despite the deregulation of the downstream sector, oil marketers have been reluctant to increase the rates, which are significantly lower than the actual cost of transporting the products.

In a letter dated February 15, 2024, addressed to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), NARTO stated that the association can no longer continue with operations due to the deteriorating state of the economy. 

The statement partly read; “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.

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.”

As part of its directive, NARTO  asked all of its employees, who are members of NUPENG, to cooperate and support the collective efforts of both organisations to sustain the petroleum haulage business and ensure effective service delivery.

NARTO  also clarified that the current economic situation in Nigeria makes it impossible for the association to continue operating as it has been. It stressed that the economic challenges facing the country have left it with no other option but to seek a review of the freight rates for petroleum haulage.