The fuel price increase is having a significant impact on the trucking sub-sector in the transport sector, and the government must take immediate action to address this issue.
The review by the Energy and Petroleum Regulatory Authority (EPRA) has directly affected the long-distance trucking part of the transport industry. It is not just fuel costs that are causing problems for the industry. Spare parts, lubricants, and tyres are also becoming more expensive due to the increase in the value of the dollar, making it difficult for companies to maintain their profit margins.
Compounding the problem is that transport rates are often fixed for the long term or at least controlled within certain limits, which means that companies cannot simply raise their prices to compensate for the increased costs. This issue is particularly concerning for transporters of bulk materials as the rising cost of expenses in this line of work significantly strains profit margins.
Despite these challenges, it is essential that sector players work together to find solutions to these problems. It can start by exploring ways to improve efficiency and reduce costs, such as investing in more fuel-efficient vehicles and exploring alternative transportation methods.
Additionally, sector players need to work with government agencies and industry leaders to develop policies and regulations supporting the trucking sub-sector's growth and sustainability. By taking proactive steps, we can ensure that this vital industry continues to thrive and contribute to the growth of our economy.
Logistics operations and procurement professional. [email protected]
