…As representatives urge AON to face market realities.
The GMD/CEO of the Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari, said that the NNPC will continue to guarantee energy security for the country and provide the needed support for the aviation industry to thrive.
Speaking at a meeting with principal officers of the House of Representatives, Nigerian National Petroleum Company (NNPC) Limited, the Central Bank of Nigeria, and other stakeholders in a bid to resolve critical issues facing airline operations in the country, chaired by the Speaker, Hon. Femi Gbajabiamila, on Monday on the aviation fuel crisis, Kyari said aviation fuel cannot have a fixed price because it is a deregulated product. “
“So 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,” he said.
“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, he has 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.
“We cannot fix the price. We cannot ask for N500. We cannot say it must be below N600 or N700, Kyari reiterated.
From all indications, AON wants subsidized aviation fuel, otherwise known as ATK, but the NNPC said its intervention to supply jet fuel will be at the prevailing market price.
The GMD/CEO of NNPC Ltd said that the Company will continue to guarantee energy security for the country and provide the needed support for the aviation industry to thrive.
He also called on the Airline Operators in Nigeria to commence the process of applying for a license to import jet fuel.
As part of his transparency agenda, the GMD turned down the call to have an Executive Session without the media. He insisted that the NNPC Limited has nothing to hide, hence calling for the presence of the media to cover the meeting to the end.
The Speaker commended the GMD, Mal Mele Kyari, and the Nigerian National Petroleum Company (NNPC) Limited for their resolution.
The meeting, at the instance of the speaker of the house, Rt. Hon Femi Gbajabiamila, examined the issues raised by all stakeholders and thereafter resolved to undertake short-medium, and long-term measures to provide a sustainable solution as follows:
- Use the term “cancel strike” as opposed to “suspension.”
- AON should be able to access the 6 million litres made available at the intervention of the CBN governor at N480 per litre to immediately cushion the impact of revenue loss.
- NMDPRA to process AON applications and grant waivers that would not compromise the safety and security of the country.
It will be recalled that the Nigerian airline operators on Friday issued a notice that, with effect from Monday, May 9th, they will shut down their operations due to the high cost of aviation fuel, which has hit 700 naira per litre.
