Our Business is Collapsing over 100% Rise in Operational Costs, Lament Truck Owners
APAPA PORT TRAFFIC
By Our Reporter
Truck owners on Thursday lamented over increasing operational costs in transportation, saying this was killing the business in the country.
Addressing newsmen in Abuja, the Nigerian Association of Road Transport Owners (NARTO) said high cost of operations was forcing many off the road.
The National President of NARTO, Mr. Yusuf Othman, said things have become too expensive for the transport owners.
According to Othman, the cost of truck heads which used to be N20million about one year ago now costs N35million.
He disclosed that while a tank was selling at N8milion about two yeas ago, it now sells for N15million.
He added that what is even so painful was the cost of dollar to Naira, adding that while it used to be N315 in 2020, it is now N570 per dollar.
Othman identified other costs as tyres which went up from N35000 to N150000 for one.
He also said battery which sold for N32,000 now sells for N120,000 for the trucks.
On diesel, he said a litre has gone up from N250 to N420 as at February 2022.
He said that with such high costs, the business of transportation is collapsing with owners suffering a lot of hardship.
According to NARTO even with the high costs, the Downstream, Midstream Regulatory Authority (NDMPRA) which regulates the petroleum products haulage has not allowed members to increase freight rate.
The President added, “It should be noted, also, that all the above costs involve the use of foreign exchange to acquire which transporters must source by themselves since they are not beneficiaries of the government official forex allocations.
“The data presented does not include cost of maintenance, such as spare parts, gear oil, lubricants, overheads, etc,”
“This has become imperative to avoid substandard or poor work execution. In fact, we recommend that a committee comprising stakeholders should be set up to help in the supervision and monitoring exercise to ensure speedy completion of the work before the rainy season.”
Truck owners on Thursday lamented over increasing operational costs in transportation, saying this was killing the business in the country.
Addressing newsmen in Abuja, the Nigerian Association of Road Transport Owners (NARTO) said high cost of operations was forcing many off the road.
The National President of NARTO, Mr. Yusuf Othman, said things have become too expensive for the transport owners.
According to Othman, the cost of truck heads which used to be N20million about one year ago now costs N35million.
He disclosed that while a tank was selling at N8milion about two yeas ago, it now sells for N15million.
He added that what is even so painful was the cost of dollar to Naira, adding that while it used to be N315 in 2020, it is now N570 per dollar.
Othman identified other costs as tyres which went up from N35000 to N150000 for one.
He also said battery which sold for N32,000 now sells for N120,000 for the trucks.
On diesel, he said a litre has gone up from N250 to N420 as at February 2022.
He said that with such high costs, the business of transportation is collapsing with owners suffering a lot of hardship.
According to NARTO even with the high costs, the Downstream, Midstream Regulatory Authority (NDMPRA) which regulates the petroleum products haulage has not allowed members to increase freight rate.
The President added, “It should be noted, also, that all the above costs involve the use of foreign exchange to acquire which transporters must source by themselves since they are not beneficiaries of the government official forex allocations.
“The data presented does not include cost of maintenance, such as spare parts, gear oil, lubricants, overheads, etc,”
“This has become imperative to avoid substandard or poor work execution. In fact, we recommend that a committee comprising stakeholders should be set up to help in the supervision and monitoring exercise to ensure speedy completion of the work before the rainy season.”
FOLLOW US
About Post Author
