Following airline operators warning that they have only three days left to shut down operations over lingering scarcity of aviation fuel in Nigeria.
The Nigerian National Petroleum Company (NNPC), Airline operators, aviation fuel marketers and other stakeholders agreed on an interim price of N500 for aviation fuel, Jet A1.
The interim price is to run for three days pending the determination of a substantive price that would be arrived at.
The Group Managing Director, NNPC Ltd, Mele Kyari, disclosed this at the end of the resumed stakeholders meeting on the high cost and non-availability of aviation fuel in the country.
Kyari said after consultations between stakeholders, the airline operators would be given licences to import aviation fuel as requested by the chairman of Air Peace.
The Vice-Chairman, Airline Operators of Nigeria, Allen Onyeama said, although it was not what they expected, they have agreed to experiment with the price for three days while negotiations between stakeholders last.
“We would have loved to have the price as low as N200 per litre, but we will keep to the agreement on the tentative price,” Onyeama said.
He, however, disclosed that the cost of airline tickets would still be on the high side until everything is resolved.
Speaking on Monday, March 14, 2022, at a meeting of oil marketers and Airline operators in the National Assembly, Onyema said, “We have only three more days, all airlines in Nigeria will shut down. We are not threatening this country, it is a fact.”
He explained that if they were to continue flying, an average Nigerian will spend N120,000 for an economy ticket.
Nigerian Airline operators are demanding operational licenses from the federal government to begin importation of fuel into the country following the recent fuel debacle and scarcity across the country.
The Deputy Speaker, Ahmed Wase pleaded with the stakeholders to resolve the issue and reduce the sufferings of aviation passengers in the country, adding that the interim report would be presented on the floor of the House on Tuesday, March 15, 2022.
Cause of aviation fuel price hike
Looking at the cause of the scarcity and current high price, Chief Executive Officer of Cleanserve Energy, Chris Ndule, said the current price of crude oil in the international market had affected the prices of all petroleum products, aviation inclusive.
Ndule said: “It is not only aviation fuel price that has increased, other petroleum products prices have also increased.
“This is partly due to the current price of crude oil in the international market, which is going for between $110 and $125 per barrel.
“The raging war in Ukraine has affected international trade. For instance, I was to bring in some shipment of Jet A1. But my foreign partner decided we should hold on and watch the international shipping routes.”
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