The possibility of a severe shortage of fuel arises as transporters hesitate in face of the increasing expenses of their operations.
The Nigerian Association of Road Transport Owners has issued a warning that they may temporarily halt their operations on Monday as a result of increasing operational expenses.
In a press release in Abuja, Alhaji Yusuf Othman, the National President of the organization, mentioned that if an agreement is not made beforehand, members will halt their truck operations starting from that day. This measure will be implemented if a deal is not reached.
He expressed deep concern over the financial struggles faced by the members of the association, emphasizing that it has become increasingly difficult for them to sustain these losses.
“What we spend on operation is more than what we get in total: both in local and bridging. We will have to suspend operations latest from now till on Monday.
“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 consumables has increased. But the freight they are paying us has been the same even during Buhari’s time.
“So how is that feasible? During Buhari’s time, dollar was N650. Today, dollar is N1,615. The average freight from Lagos to Abuja is N32. What I mean by local is that 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 (diesel) 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 more of cost of vehicles, cost of loading, driver’s allowance. That is for local. For bridging, Lagos to Abuja, they give us N32.
“If you have truck of 40,000 litres, you are talking of N1,280,000-N1,216,000, less 5 percent of the amount of N1,280,000 withholding tax N64,000, less N55,000 loading expenses and N15,000 driver allowance. Total expenses is N134,000, while balance is N1,146,000. AGO is N1400 for 900 litres, totalling N1260,000. There is a total loss of N114,000,” he lamented.
“We cannot continue to operate at a loss. Most people have parked. A lot more are going to park. But from the point of the association itself, we are going to suspend operations on Monday,” Othman stated