A fresh crisis in the petroleum downstream sector appears imminent, as the Nigerian Association of Road Transport Owners (NARTO) says it has directed all its members to withdraw their petroleum trucks from product-loading activities as of Monday, February 19, 2024.
The decision by the association follows high operational costs in the industry, which has led to its request for oil marketers to review freight charges.
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This disclosure is contained in a letter dated February 15, 2024, which was signed by its National President, Othman Yusuf, and addressed to the National Union of Petroleum and Natural Gas Workers (NUPENG).
The letter titled ‘Notice of withdrawal of operation’ was also sent to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Department of State Security (DSS), and the executive secretary of the Major Energy Marketers Association of Nigeria (NEMAN).
NARTO had said that despite the deregulation of the downstream sector, oil marketers have refused its request to review the rates.
It stated that it can no longer continue with operations due to the state of the economy.
The association said several efforts made to get the freight rates for their operations reviewed have had no positive results.
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 truck 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 to 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 in our collective efforts for continued sustainability of the Petroleum Haulage business and effective service delivery by ensuring adequate and immediate compliance.
‘’There is definitely no way we can continue in this business within the context of the current economic situation in the country.’’