Terminal operators groan as diesel price rises by 55.9%

The finances of port terminal operators in the country are coming under severe pressure due to escalating costs of inputs and rising overheads.

A terminal operator told SHIPS & PORTS weekend that his company’s rising salary bill, escalating cost of imported spare parts and cost of diesel to power the terminal and cargo handling equipment have put his company under severe financial pressure.

Recently, the National Bureau of Statistics (NBS) said the average retail price of Automotive Gas Oil (diesel) paid by consumers increased by 55.90 per cent yearly from N539.32 per litre in March last year to N836.81 per litre in March this year.

In a report titled “Automotive Gas Oil (Diesel) Price Watch (March 2023), the NBS also stated an increase of 0.47 per cent was recorded from N836.91 in the preceding month to an average of N840.81 last month.

Similarly, it said the average retail price paid by consumers for Premium Motor Spirit (petrol) in March 2023 was N264.29, indicating an increase of 42.63% over the N185.30 price recorded a year earlier.

Comparing the average price value with the previous month (i.e. February 2023), the document said the average retail price increased by 0.20% from N263.76.

Recently, the Maritime Workers Union of Nigeria (MWUN) said it wants the Federal Government to approve an upward review of the charges of seaport terminal operators to enable them meet their financial obligations to dockworkers.

According to a statement issued by MWUN, terminals operators under the umbrella of the Seaport Terminal Operators Association of Nigeria (STOAN) have over the years borne the burden of wages, salaries, and allowances, which “unfortunately they cannot further shoulder due to general inflation rate, deteriorating economic condition, increasing operational/administrative costs, high rate of exchange and other such economic factors”.

MWUN said in view of prevailing economic conditions in the country, terminal operators may not be able to honour the provisions of the minimum standards of docklabour, which they recently negotiated and signed with the union under the supervision of Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), except they are allowed to increase their charges.