Nigerian Association of Road Transport Owners (NARTO), controlling over 80 per cent of the petroleum transportation in Nigeria, on Monday, withdrew its service nationwide.
This is owing to the economic hardship caused by high operational costs and low freight rates.
A recent letter signed by NARTO’s National President, Yusuf Lawal Othman, to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) indicates that service withdrawal commences from today.
According to the association, it had made several efforts to negotiate with the Major Energy Marketers Association of Nigeria (MEMAN), and other critical stakeholders in the industry for appropriate and commensurate freight rates for its operations but received no positive responses.
The notice of withdrawal of their services and operations portends serious implications for the supply and distribution of petroleum products across the country.
NARTO said it had no other option but to inform NUPENG that its National Executive Council, had resolved to direct all its members not to make their petroleum trucks available for petroleum product loading activities.
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The group also appealed to its employees, who are members of NUPENG, to show maximum cooperation, support and understanding of its collective efforts for the continued sustainability of the petroleum haulage business and effective service delivery by ensuring adequate and immediate compliance with the directive.
“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.
“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 said.
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.”
The notice, was also sent to the Nigeria Midstream and Downstream Petroleum Regulatory Agency, the Department of State Services, and MEMAN’s Executive Secretary.
