The Nigerian Association of Road Transport Owners (NARTO) on Monday vowed to withdraw its haulage service unless the Federal Government addresses its rising operation cost immediately.
The association’s National President, Alhaji Yusuf Lawal Othman, in a statement its members find it difficult to sustain the business because the freight rate is regulated and paid in arrears.
He insisted: “And then we will also tell them to park if nothing is done because we can’t operate in such a way.”
He described the business environment as unbearable, adding.
“Therefore, 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 the 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) diesel and spare parts.
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He disclosed that the ex-depot cost of diesel soared to N401 per litre on Monday.
Othman warned it 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 to increase the freight rate and address other pressing issues of cost of operation.
Explaining the rising cost of diesel, Othman said: “We have 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. At the filling station, it will reach like N450.”
On fixing NARTO suggesting a new freight rate, the President said: “I 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.”