The Nigerian Association of Road Transport Owners, NARTO, has announced that it has instructed all its members to halt petroleum truck loading activities starting from Monday, February 19, 2024.
The action stems from the association’s call for oil marketers to reconsider freight rates. Despite the deregulation of the downstream sector, NARTO stated that oil marketers have declined its request for rate adjustments.
Deregulation entails the removal of government control over petroleum product prices, allowing private entities to dictate decisions within the sector.
In a letter dated February 15, 2024, addressed to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), NARTO expressed its inability to continue operations due to economic conditions. The association highlighted that numerous attempts to secure a review of freight rates for their operations have yielded no 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.”
NARTO added that “there is definitely no way we can continue in this business within the context of the current economic situation in the country”