……..Says it will not fix price for aviation fuel
The Nigerian National Petroleum Company (NNPC) has asked airline operators to request for import license to enable them import aviation fuel for their operations.
Stating their position at the joint meeting between the lawmakers, top management of the NNPC and the officials of the Airline Operators of Nigeria (AON), the NNPC insisted that it will not fix price for aviation fuel.
NNPC group managing director, Mele Kyari explained to the meeting that aviation fuel cannot have a fixed price because it is a deregulated product.
“You cannot hold unto any price and indeed what you have seen in the media is N700 reference point. It cannot be a reference point. It depends on the market condition.
“It can be higher than N700 depending on the market. This market shifts. As we speak, it is closely related to the price of crude oil. It is our role to ensure we intervene.
“We did. We brought in products so that we can dampen the price. In March and April, we brought in cargo and made it available to the entire industry at N460.
“There is a build-up to that price. When the customer takes marine at N435, he has to transport to the charter vessel, bring it to his depot, to his fuel station and transport it. So there cannot be two same prices in Lagos and Maiduguri,” the NNPC boss said.
The airline operators are expected to commence the process of securing a license for the importation of aviation fuel to avoid suspicion over the landing cost of the product and other associated logistic issues.
In his comments, Speaker of the House of Representatives, Mr. Femi Gbajabiamila, said shutting airline operations could cripple the government.
He confirmed that as part of the resolutions, it was also agreed that, as a long-term solution, the airline operators would commence the process of securing license for the importation of aviation fuel to avoid suspicion over the landing cost of the product and other associated logistic issues.
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