Terminal Operators Suffer High Operational Costs Over Hike in Diesel Price

…Why Fuel Scarcity Hits Lagos, Abuja

By DAPO OLAWUNI

There are indications that terminal operators in Nigerian ports are suffering a high operating costs due to the astronomical hike in prices of Automated Gas Oil (AGO) otherwise known as diesel.

Findings by DAILY TREND at the nation’s port showed that the terminal operators do not enjoy power supply, hence all machines and equipment inside the various terminals are diesel driven.

As at the weekend, diesel prices have gone to N780 in some stations while some other major petroleum marketers still sell the product for N750. Meanwhile there are projections that the price of diesel would rise further to N1,500 per liter.

The diesel price hike has had critical effects on, not just transportation sector, but banks, private offices have all cut down their services.

Speaking with DAILY TREND, an inside source at one of the terminals in Lagos lamented in the face of all these challenges which has affected cost of doing business, the terminal operators are not permitted to add a penny to the charges they collect at the port.

The source who pleaded anonymity stated that “The cost of diesel in Nigeria today has skyrocketed and everything you see inside the port today is diesel driven, there is no single electricity inside the port, everything is driven by diesel.

“With all of these, we are not expected to add a dime to our charges and yet we have not reviewed our charges for over ten years now, this is a challenge.

“When the government wants to collect their money (Throughput fees and Lease fees) from terminal operators, they collect it in dollars through NPA, we know how much the dollars was to the Naira back then and now.

“With the little profit terminal operators make, they are also expected to increase their workers salaries in every two years, but yet they cannot increase their rate of charges on operations” he stated

Why Fuel Scarcity Hit Lagos, Abuja

Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has given reasons why there is fuel scarcity in Lagos and Abuja.

According to member of IPMAN, Suleman Garba, the cause of the queues for petrol was because most tanker drivers were not loading the product due to the high cost of diesel

“When you turn to the drivers, they complain of the high cost of diesel and the government said they were looking at the situation but NNPC has supplied the stock, especially at the private depots in Lagos but we are having issues bringing it,” he noted.

The IPMAN has equally directed it’s members and filling stations to start selling petrol for N180 per liter, which is above the N165 per liter official rate due to the diesel cost impacting on petrol transportation.