Nigeria may be in for another round of fuel crisis as the Nigerian Association of Road Transport Owners (NARTO) yesterday in Abuja said lifting of premium motor spirit otherwise called petrol will be halted on Monday.
This comes as The Guardian on Thursday reported that President Bola Tinubu’s deregulation of downstream segment of the petroleum industry is at the verge of a crisis.
Rising from a meeting yesterday, NARTO, which hauls about 90 per cent of petroleum products across the country said members would down tools effective from Monday next week.
National President of NARTO, Yusuf Othman, said what truckers are spending on operation is no longer sustainable. “We will have to suspend operations latest on Monday. We cannot continue to operate at a loss. Most people have parked. A lot more are going to park. We are going to suspend operations on Monday.”
Attempts to ensure the group come to terms with key agencies to remain in business have been elusive.
“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.
“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 of 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 truck of 40,000 litres, you are talking of N1,280,000-N1,216,000. Less 5 per cent 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 N1260,000.
There is a total loss of N114,000.
The diesel that you use from Lagos to Abuja is 900 litres.
“So when you use 900 litres at 1,400, that will be N1,260,000. So it is by far more than what are paid,” Othman said.
