The Group Managing Director of Nigerian National Petroleum Corporation (NNPC) Limited, Mr Mele Kyari earlier today disclosed plans to grant licence to the Airline Operators Association of Nigeria (AOAN), to commence importation of Aviation Fuel otherwise called ATK.
Mr Kyari disclosed this at the end of the investigative hearing into the price hike of ATK by oil marketers, held at the instance of the House of Representatives, during which the House leadership, Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), NNPC Limited unanimously resolved to fix the ATK price at N500 per litre as against N670 per litre.
“We know this is a very difficult situation. We know that once aviation fuel increases, prices of flight tickets will certainly increase and this can surely cost pain for Nigerians. That is why we are working with you to ensure that those pains are minimized to the barest minimum and one of the elements is the pricing of aviation fuel.
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“So, what we have engaged 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 referenced benchmark that is quoted transparently in the market.
“They will have a referenced exchange rate for the Naira so that anyone can compete. They will also agree on a premium which currently differs from Customer to Customer, depending on the volume you 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 these discrepancies we have seen where some people are selling at 445 and some are selling at N630. This will completely bring close such that you will not see these differences.
“We also agreed that in the interim, between now and the three days that have to close negotiations, (the lowest price we have seen as of this morning was N445 and a high of N605. There is a trader that is selling at N630 and we don’t think this is normal and so, we discounted it), we agreed that the will sell at N500 in the next three days and after that, they will switch to the new price that everyone can assess.
Speaking earlier during the investigative hearing, the Deputy Speaker, Hon. Ahmed Wase chided the authorities of Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) for failing in its responsibilities, saying: “You are supposed to regulate their (oil marketers) activities, are you just giving the licence? What are the minimum requirements; what is expected of that company that you are authorizing them to bring in this product; is it that they have the opportunity and then the leverage to tell you whatever rate they want and it has to stand? No, I don’t think so,” the Deputy Speaker queried. (Tribune)
