Shortage of aviation fuel: NNPC and oil marketers meet to license airline companies to import cheaper fuel.

The Nigerian National Petroleum Corporation (NNPC) and the National Assembly negotiated an intervening period contract between oil marketers and aviation contractors to allow the latter to import cheaper fuel, helping to bring the crisis between them to a halt.

This was indicated in a Twitter post from NNPC's Chairman and the Managing director, Mele Kyari.

And according to the statement, airline operators have indeed been granted permission to import fuel to alleviate the country's economic aviation fuel shortage and price hike.

 

MOMAM, DAPPMA, and Nigeria's Airline Operators will convene in 3 days to agree on a transparent pricing basis.

"It means they must have a reference point that is quoted directly and straightforwardly in the market, as well as a reference template for the naira so that everyone can compete," he said MOMAM, DAPPMA, and Nigeria's Airline Operators will convene in 3 days to agree on a transparent pricing basis.

He said those are things that would be negotiated in three days so that they could close and on to say those are things that would be negotiated in three days so that they could close and also have a clear pricing foundation.

He stated that it will not impact the product's actual market value, stating that "we won't see huge discrepancies in the industry where some people are selling" above 450 or others at 630, and that this will eliminate the possibility of consumers seeing such prices.

"Furthermore, we agreed that in the interim between now and the 3 days when they might close the basis of prices, the lowest we have seen as of this morning is N445 and another high of 605, some traders are selling at 630, we don't think it's normal and it has been discounted, without any logic around it, let me highlight, they will sell for the next 3 days at N500 to a liter, and on day 3, they will switch to a new formula that everyone can accept and compute."

 

"Finally, officials will provide a license to import petroleum products, as asked by Nigerian aircraft operators, so that they may benchmark products compared to those of other customers and bring in cheaper items wherever feasible," he said.

Domestic airline carriers have been instructed by the Federal Competition and Consumer Protection Commission (FCCPC) to cease existing pricing hikes until the conclusion of its inquiry. This comes after airlines increased tickets by at least 100%, with a one-way economy ticket costing more than N50,000 due to fuel shortages.