Shortage of aviation fuel: NNPC and oil marketers meet to license airline companies to import cheaper fuel.
- Posted on March 15, 2022
- Finance
- By Osinachi Gift
The Nigerian National Petroleum Corporation (NNPC) and the
National Assembly negotiated an intervening period contract between oil
marketers and aviation contractors to allow the latter to import cheaper fuel,
helping to bring the crisis between them to a halt.
This was indicated in a Twitter post from NNPC's Chairman
and the Managing director, Mele Kyari.
And according to the statement, airline operators have
indeed been granted permission to import fuel to alleviate the country's
economic aviation fuel shortage and price hike.
MOMAM, DAPPMA, and Nigeria's Airline Operators will convene
in 3 days to agree on a transparent pricing basis.
"It means they must have a reference point that is
quoted directly and straightforwardly in the market, as well as a reference
template for the naira so that everyone can compete," he said MOMAM,
DAPPMA, and Nigeria's Airline Operators will convene in 3 days to agree on a
transparent pricing basis.
He said those are things that would be negotiated in three
days so that they could close and on to say those are things that would be
negotiated in three days so that they could close and also have a clear pricing
foundation.
He stated that it will not impact the product's actual
market value, stating that "we won't see huge discrepancies in the
industry where some people are selling" above 450 or others at 630, and
that this will eliminate the possibility of consumers seeing such prices.
"Furthermore, we agreed that in the interim between now
and the 3 days when they might close the basis of prices, the lowest we have
seen as of this morning is N445 and another high of 605, some traders are
selling at 630, we don't think it's normal and it has been discounted, without
any logic around it, let me highlight, they will sell for the next 3 days at
N500 to a liter, and on day 3, they will switch to a new formula that everyone
can accept and compute."
"Finally, officials will provide a license to import
petroleum products, as asked by Nigerian aircraft operators, so that they may
benchmark products compared to those of other customers and bring in cheaper
items wherever feasible," he said.
Domestic airline carriers have been instructed by the
Federal Competition and Consumer Protection Commission (FCCPC) to cease
existing pricing hikes until the conclusion of its inquiry. This comes after
airlines increased tickets by at least 100%, with a one-way economy ticket
costing more than N50,000 due to fuel shortages.
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