Why airline operators, NNPC, oil marketers pegged aviation fuel at N500 per litre
BY ADAKU WALTER
Following the disagreement over the shortage and hike in the price of aviation fuel or Jet A1, the Nigerian National Petroleum Corporation (NNPC), airline operators, and oil marketers, among others, have reached a resolution to peg the product at N500 per liter in the interim.
Group Managing Director of NNPC, Mele Kyari, who disclosed this at the end of a stakeholders meeting, said the price will run for three days pending the determination of a competitive price.
He added that the NNPC and the National Assembly brokered an interim agreement among oil marketers and airline operators to allow the latter to import cheaper fuel. He noted that the airline operators would be given licences to import aviation fuel, as earlier requested by Chairman of Air Peace, Allen Onyema, who also disclosed that with the latest development, Nigerians should expect to pay N120, 000 for each air ticket.
Kyari said within the three days, representatives from MOMAM, DAPPMA and the airline operators would discuss and agree on transparent and competitive pricing.
He said: “It means that they have to have a reference benchmark quoted directly and transparently in the market.
They also must have a reference template for the Naira so that anyone can compete and also engage and agree on a premium, which differs from customer to customer, depending on the volume of the products to be bought and the credit limit customers are ready to take, The Trumpet gathered.
“Secondly, we agreed that in the interim, between now and three days where we will be closer to the basis of prices, the lowest we have seen is N445 and N605, some traders are selling at N630, we don’t think it is normal and it has been discounted without any logic.”
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He stressed that the product would sell at N500 per litre for the next three days and on the third day they will switch to the new formula that everyone could accept and compute. Kyari also revealed that this would generate the actual market value of the product, noting: “There won’t be huge discrepancies in the market where people will sell above N450 and some at N630.
This, he added, will completely bring into closure that consumers will not see such prices. Deputy Speaker of the House of Representatives, Ahmed Idris Wase, pleaded with the stakeholders to resolve the issue and reduce the sufferings of air travelers in the country.
