The umbrella body of petroleum truck owners in the country, Nigerian Association of Road Transport Owners (NARTO), has insisted on withdrawing its services nationwide, citing high operational costs and low freight rates.
In a letter addressed to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), signed by its national president, Yusuf Lawal Othman during the weekend, NARTO said 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, as NARTO controls over 80% of the petroleum transportation in Nigeria.
NARTO said it had no other option but to inform NUPENG that its National Executive Council (NEC) had resolved to direct all its members not to make their petroleum trucks available for petroleum product loading activities with effect from Monday, February 19, 2024.
NARTO appealed to its employees, who are members of NUPENG, to show maximum cooperation, support, and understanding in 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.
NARTO said it was impossible to continue in the business within the context of the current economic situation in the country.
The notice of withdrawal of operations was also sent to the Nigeria Midstream and Downstream Petroleum Regulatory Agency (MMDPRA), the Department of State Services (DSS), and the executive secretary of MEMAN.
Amidst growing concerns over the impending strike and its potential impact on the economy, calls have been made for urgent government intervention to address the root causes of the dispute and prevent a fuel crisis. As a key regulator of the petroleum industry, the government holds a pivotal role in facilitating dialogue between stakeholders, fostering a conducive environment for negotiations, and implementing policies that promote fair and sustainable freight rates. Timely intervention is crucial to averting a situation that could inflict severe hardships on the Nigerian populace and disrupt economic activities.
In the face of mounting tensions and the looming threat of a nationwide strike, efforts must be redoubled to seek a mutually acceptable resolution to the dispute between NARTO and industry stakeholders. Dialogue, transparency, and compromise are essential for bridging the gap between operational realities and industry regulations. Stakeholders must come to the table with a commitment to finding equitable solutions that ensure the sustainability of petroleum transportation operations while safeguarding the interests of all parties involved.
The standoff between NARTO and stakeholders in the petroleum industry underscores the challenges facing Nigeria’s fuel distribution network and the urgent need for systemic reforms. As the country braces for a potential fuel scarcity crisis, concerted efforts must be made to address the underlying issues of operational costs, freight rates, and regulatory compliance. Only through constructive dialogue, collaboration, and proactive government intervention can Nigeria mitigate the risks posed by the impending strike and safeguard the stability of its fuel supply chains.
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