NNPC Ltd GMD, Mele Kyari signing the deal as representatives of the Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Marketers Association of Nigeria (DAPMAN) and the Airline Operators of Nigeria (AON) watch at the meeting, Monday
Reps, NNPC, others broker deal between airlines, petroleum marketers over price of aviation fuel
House of Representatives, the Nigeria National Petroleum Company (NNPC) Ltd, and other stakeholders, Monday, brokered a deal on price of aviation fuel between airline operators and the petroleum marketers to avert the warning by members of the Airline Operators of Nigeria (AON) who had threatened to shut down over rising cost of the product.
Parties to the agreement reached a price of N500 per litre for aviation fuel, also called JET A1 for airline operators to buy from petroleum marketers.
The agreement involved; Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Marketers Association of Nigeria (DAPMAN) and the Airline Operators of Nigeria (AON).
According to the terms of the agreement, the interim price is to run for three days pending the determination of a substantive price that would be arrived at.
Commenting, Group Managing Director, NNPC Ltd, Mele Kyari, who said the agreement was a fallout 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 and Vice Chairman of the Airline Operators of Nigeria (AON), Chief Allen Onyema.
“They have agreed to fix the price for N500 per litre for three days after which a substantive price would be fixed,” Kyari added.
The AON Vice-Chairman, Onyema 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,” Onyema said.
He, however, disclosed that the cost of airline tickets would still be on the high side until everything is resolved.
Also remarking, Deputy Speaker, House of Representatives, 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.
