Oil marketers and members of the Nigerian Association of Road Transport Owners (NARTO) are engaged in intense negotiations to prevent a potential nationwide shutdown of fuel transportation operations.
The looming crisis arises from NARTO’s threat to halt the lifting of petroleum products due to soaring operational costs, prompting urgent intervention from the Federal Government.
Following six rounds of meetings between oil marketers and NARTO executives over the past two days, discussions have centered on resolving the impasse to avert disruptions in fuel supply across the country.
The government through the downstream regulator and the petroleum ministry is set to convene a crucial meeting with NARTO members and other stakeholders today in Abuja to address the escalating situation.
Nigeria’s independent marketers have expressed concerns over the persistent depreciation of the naira against the dollar, foreseeing a potential spike in the pump price of Premium Motor Spirit (PMS) to as high as N1,500 per liter in the coming days.
With the dollar surpassing the N1,500 mark, the cost of importing petroleum products remains a pressing challenge, underscoring the delicate balance between market dynamics and consumer affordability.
NARTO’s decision to suspend operations stems from the exorbitant cost of diesel required to power their trucks for product transportation nationwide.
Despite repeated appeals and efforts to engage government agencies, NARTO contends that operational expenses far outweigh revenues, rendering continued operations unsustainable.
While NARTO emphasizes the need for increased freight rates to offset rising operational costs, the government has been urged to intervene and facilitate constructive dialogue to reach a viable resolution.
As negotiations continue, stakeholders remain hopeful for a mutually beneficial outcome that ensures uninterrupted fuel supply while addressing the financial viability of transport operations in Nigeria’s petroleum industry.