Fuel Scarcity Alert: NARTO Directs Tanker Drivers to Halt Operations Amidst Rate Dispute

In a move set to heighten concerns over fuel availability, the Nigerian Association of Road Transport Owners (NARTO) has instructed its members to suspend petroleum truck operations starting Monday, February 19, 2024.

The decision stems from NARTO’s plea to oil marketers for a review of freight rates, which has been met with resistance despite the downstream sector’s deregulation. Deregulation grants private entities autonomy in decision-making, removing government control over petroleum product prices.

In a communication dated February 15, 2024, addressed to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), NARTO expressed its inability to sustain operations given the current economic climate. Despite numerous attempts to negotiate freight rates with relevant authorities, including the Major Energy Marketers Association of Nigeria, NARTO has faced continuous setbacks.

The statement from NARTO reads, “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.”

It further emphasizes the lack of viable alternatives, stating, “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.”

As NARTO halts its operations, concerns are rising about the potential impact on fuel supply and the broader economic repercussions. The standoff between transport owners and oil marketers adds a layer of complexity to the ongoing challenges in the Nigerian fuel industry.