Airline operators in the country are to be granted a license to import aviation fuel, otherwise known as Aviation Turbine Kerosene(ATK) or Jet A-1
The measure which was announced yesterday by the Group Managing Directors of the NNPC Limited, Mele Kyari, is to check the rising cost of the product and help keep the airlines afloat.
But going by the comments of the airline operators at an impromptu meeting with Kyari and an enlarged parley with the House of Representatives leadership yesterday, air travellers should brace for higher fares.
They warned that they might be forced to shut down if, in the next three days, the cost of aviation remained high.
As of yesterday, aviation fuel sold for an average of N610 per liter.
Reading the resolutions reached the enlarged meeting with the House leadership, Kyari said that aviation fuel dealers had been asked not to sell above N500 per liter for now.
The NNPC boss said “We know this is a very difficult situation. We know that once aviation fuel increases, prices of flight tickets will certainly rise and this can surely cost pains for Nigerians. That is why we are working to ensure that pains are minimized.
”So, what we have agreed with MOMAN, DAPMAN and the airline operators is that in three days’ time, their representatives will sit down and agree on a transparent base for pricing. That means that they ought to have a benchmark that is quoted transparently in the market.
”They will have a referenced exchange rate so that anyone can compete. They will also agree on a premium which currently differs from customer to customer, depending on the volume they buy and the credit level.
”These are the things they can negotiate in three days and close so that going forward, there is a transparent decision on pricing. This will no doubt throw up the actual value of the product in the market. You will no longer see this discrepancy we have seen where some people are selling at N445 and some are selling at N630.
”We also agreed that in the interim, between now and the three days we have to close negotiations. We agreed that they will sell at N500 in the next three days and after that, they will switch to a new price that everyone can assess.
”Lastly, as requested by the airline operators, they will be granted a license to import petroleum products, particularly ATK so that they can have a way of benchmarking the sales of other customers and can also bring in cheaper products whenever it is possible.”
Chairman of Air Peace, who is also the Vice President of the AOAN, Chief Allen Onyeama commended the Legislature for its intervention but appealed to Nigerians to brace for a fare hike. Read more