The Nigerian Association of Road Transport Owners (NARTO) has threatened to withdraw its haulage service if the Federal Government does not immediately address its rising cost of operations.
NARTO National President, Alhaji Yusuf Othman announced this in a statement issued on Monday.
The statement said members of the association are currently finding it difficult to sustain the business because the freight rate is regulated and paid in arrears.
It described the business environment as unbearable, adding that with the current freight rate, it would be difficult to sustain their businesses.
According to the statement , “Transporters whose freight rate is fixed and regulated cannot sustain the business if nothing is done.
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“We can’t operate. We can’t work if nothing is done to increase the freight rate. The condition is unbearable because of cost of diesel,’’ the statement said.
The statement urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority to urgently increase the freight rate to reflect the present cost of Automotive Gas Oil (AGO) diesel and spare parts.
The association president, Othman who disclosed that the ex-depot cost of diesel soared to N401 per litre on Monday said that the price 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, Malam Farouk Ahmed, to urgently convene a stakeholders meeting to increase the freight rate and address other pressing issues of cost of operation.
It said: “We are appealing to the CEO of the downstream regulatory agency. He has to sit down with us immediately and ensure that the freight rate is increased to reflect the rising cost of diesel and other spare parts.”
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