The Federal Government says it has approved a 25 per cent increase in freight rate for petroleum products, thereby raising it from N9.5 per litre to N11.87/litre.
The National President of the Nigerian Association of Road Transport Owners, Alhaji Yusuf Othman, disclosed this at NARTO’s 22 Annual General Meeting in Abuja, on Thursday.
He, however, lamented that the benefit from the increase had been wiped out by the hike in the price of diesel to N635 per litre.
He said that with the rise in the cost of diesel due to the Russian invasion of Ukraine, the group may have to go back to the Federal Government for another review.
“Price of diesel is impacting on our business, not only us but all activities in Nigeria. This is because as at today fuel is imported into Nigeria and it is usually at the international price and everybody in Nigeria knows that the international price is now affected by the current war between Ukraine and Russia.
“The increase would not have been noticed due to the price of diesel but we know that this is temporary because of the war. So, we are positive that in the nearest future, the increase will impact on our business. But, if things continue to go up as it is now, we will have no option than to go back to the government.”
According to him, NARTO was in discussion with tanker divers to raise their salaries and allowances in order to create a good working environment in the sector.
“We are aware of the difficult conditions our members are operating in. We are doing everything possible to ease these difficulties. To this end, I am pleased to inform you that 25 per cent increase in freight rate has been approved by the government.
“Though this might not be adequate but it is the best we can get under the existing PMS Pricing Template of N165 per litre.
“Bad roads have continued to be a stumbling block towards the safe and efficient movement of goods, services, and passengers throughout the country. Many reports have been received of delays in meeting up critical delivery deadlines, vehicle breakdowns and accidents due to bad road conditions throughout the country.”
