The Nigerian Association of Road Transport Owners (NARTO), has concluded plans to suspend operations starting from Monday, adding that the rise in the price of petrol can no longer be endured.
In a statement on Thursday issued by the President of NARTO Alhaji Yusuf Lawal Othman, during a press briefing in Abuja, the federal capital territory, he disclosed that members are parking their trucks on Monday, while expressing their displeasure over deficit on expenditures and return on investment: both in local and bridging.
The statement reads, “We will have to suspend operations from Monday. We cannot continue to operate at a loss. Most people have parked. A lot more are going to park.”
Additionally, Othman recalled that the same freight rate that was in force while President Muhammadu Buhari was in government is still subsisting.
According to him, the N32 Lagos to Abuja freight rate that was implemented while the dollar was N650 is retained till now that dollar is N1,615.
“Everybody is aware that all our consumables in terms of operation are not produced in the country.
“So, by virtue of the rate of dollars, every consumable has increased. But the freight they are paying us still remains the same.”
While lamenting the state of the economy and the hardship witnessed by members, the NARTO President said the economy of the country is not encouraging.
“During Buhari’s time, the dollar was N650. Today, the dollar is now N1,615. The average freight from Lagos to Abuja is N32.
“What I mean by local, you load Lagos, you discharge in Lagos. And bridging, you load from Lagos, you come to Abuja. Lagos to Lagos, we are paid N120,000.
“AGO alone to distribute fuel within Lagos is N140,000 because it is N1,400 per litre. So, they give you N120,000 and you spend N140,000. So, how do you want to operate?
“Talk less about the cost of vehicles, cost of loading, driver’s allowance. That is for local. For bridging, Lagos to Abuja, they gave us N32.
“If you have a truck of 40,000 litres, you are talking of N1,280,000-N1,216,000. Less 5% of the amount of N1,280,000 Withholding Tax N64,000. Less 55,000 loading expenses and 15,000 driver allowance. Total expenses N134,000 while balance is N1,146,000. AGO is N1400 for 900 litres, totalling N1, 260,000. There is a total loss of N114,000.
“Meanwhile the cost of a New truck head and tank is N95 million and used is N50million.So imagine the Amount invested on each truck?.”
Speaking on the NARTO’s efforts in soliciting the intervention of all the key stakeholders in the Federal Government and industry, Othman noted that all efforts have not yielded positive results.
“We have written letters up to the level of the Chief of Staff. We have written to the Honourable Minister of Petroleum Resources (Oil) . I will send you the copy. We have written to DG SSS. We have written to the GCEO.
“We have written to the Authority Chief Executive. We have written to the Major Marketers.”