THE Nigerian Association of Road Transport Owners (NARTO) on Monday vowed to withdraw its haulage service if the Federal Government does not address its rising operation cost immediately.
According to its National President, Alhaji Yusuf Lawal Othman, members of the association finds it difficult to sustain the business because the freight rate is regulated, and paid in arrears.
Stressing his displeasure about the present situation, Othman said “then we will also tell them to park if nothing is done because we can’t operate in such way”.
He described the business environment as unbearable, adding that, 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 cost of diesel”.
He 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) or diesel and spare parts.
He said the ex-depot cost of diesel soared to N401 per litre on Monday and might hit N420 per litre at the filling stations if something is not done urgently
The National President called on the NMDPRA Chief Executive Officer (CEO), Malam Farouk Ahmed, to urgently convene 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 said.
Explaining the rising cost of diesel, Othman disclosed that there is 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 rspectively. At the filling station it will reach like N450, he noted.
On fixing NARTO, suggesting a new freight rate, the President said he cannot fix it. “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.
