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Fuel transporters threaten go-slow
by: Ephraim Munthali, 25/10/2004, 17:12:58

 


Fuel hauliers have agreed to launch a go-slow if the Petroleum Pricing Committee (PPC) does not raise fuel transportation rates by this Friday.
But PPC member John Kapito said the haulers’ threat surprised him because his Committee was waiting for the transporters to come up with rate adjustment proposals which he said have not been submitted to the Committee.
At a fuel hauliers meeting organised by the Road Transport Operators Association (RTOA) in Blantyre on Friday, the haulers said they have been making losses because haulage rates are not raised in line with increases in diesel prices.
Fuel prices went up on Friday for the first time in seven months by an average 8.9 percent for Petrol and diesel and 7.5 percent for paraffin.
Petrol is now selling at K102.70 from K94.30 per litre, diesel is at K95.40 from K87.60 while paraffin has risen from K69.25 to K74.45. Hauliers use diesel to transport the fuel.
“Nobody goes into business for fun. It’s for gain not losses. Most transporters are currently operating in negatives because they are subjected to operate at break even and its not fun,” said one transporter.
“With the kind of investments we make, we want our rates raised by Friday otherwise we will go get the fuel and just park the tankers in our yards,” he said.
RTOA executive director Shadreck Matsimbe said transporters want a trigger mechanism to result in transport rate increases if Inbond Landed Costs rise by an agreed percentage.
But Kapito, who is also executive director for the Consumers Association of Malawi, said the PPC has no problems with trigger mechanisms as long as transporters have a formulae and present audited accounts.
“We asked them to work out a formulae, they haven’t. We asked them to bring their audited accounts to justify their losses, we are still waiting. How do they justify the go-slow?” wondered Kapito.
Apart from haulage rates, the meeting also discussed HIV/Aids and its impact on the transport business, how hauliers can pool resources on cross border business and driver databanks.
It also discussed health, safety and environmental standards on fuel haulage particularly on oil industry standards, leakages, loss management, aged and unserviceable vehicles.

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This story was printed from The Malawi Nation website, http://www.nationmalawi.com