Aviation Fuel Price: Mixed reactions trail Oil Marketers, Airline operators claim

ZAINAB JUNAID
An admixture of skepticism and mixed reactions has trailed the saga between oil marketers and airline operators on the actual rate at which Aviation fuel also known as JETA1, is supplied to Airline operators.
While the oil marketers under the aegis of Major Oil Marketers Association of Nigeria, MOMAN, alleged that it supplies aviation fuel at a benchmark of #540- #550 per litre to all airlines, Airline operators of Nigeria, AON claimed that aviation fuel is supplied to them at the rate of #700 per liter which was major reason for the proposed shelved strike. MOMAN maintained that with the intervention of Nigerian National Petroleum Corporation, NNPC, aviation fuel arrived Nigeria marine terminal tank at a rate between #480 and #500 per litre depending on the logistics efficiency of the operators, and is sold at Ikeja Tarmac for #550 per litre, While it is sold to other airports outside Lagos at a rate of #570 and #580 per litre.
However, the association claimed that NNPC has been subsidizing the price of Aviation Turbine Kerosene, ATK, for few weeks now given the humongous #4 trillion subsidy.
With the intervention of NNPC and the fact that the corporation uses the nominal Central Bank of Nigeria (CBN) exchange rate, no independent importer would import aviation fuel as it is unable to access foreign exchange at the same rate. This has made NNPC the major importer of aviation fuel for now, even though the product is deregulated. The association did not see any problem troubling the airlines but affirmed that AON is looking for ways to gain more intervention from government.
AON on its part claimed that the president approval of 25,000 metric tonnes meant to be sold at landing rates to airlines has not been actualized in reality which has been a major bottleneck as it really compounded their issue. NNPC refusal to make available 25,000 metric ton of aviation fuel approved by President Muhammad Buhari to be sold to airlines at landing rates to ameliorate the losses suffered over the months as been a bone of contention.
A meeting held to resolve the juggernaut between the two parties was attended by the airline operators, Group Managing Director of the Nigerian National Petroleum Company, (NNPC) MeleKyari, Governor of Central Bank of Nigeria (CBN), Godwin Emefiele and other stakeholders and chaired by the Speaker of the House, Hon. Femi Gbajabiamila, resolved that six million litres of jet fuel would be made available through the intervention of the CBN governor, at the rate of N480 to the operators.
“The NNPC and the airline operators both agreed that in the interim of three months, the marketers of choice that they are comfortable with will be supplied with the jet fuel. “Airlines will be given opportunity to start processing applications for their personal license to be able to import their own jet fuel. “Airlines will get allocation for the next three months through the companies they nominated.
In the process of application for license, midstream should as much as possible grant waivers that would not touch on the security and safety of the process. Committee chairmen on aviation and downstream should follow up.
” In view of the resolution, another meeting was called for by house for all representatives to be attend to finalize the issue at hand but information at our disposal revealed that MOMAN representatives have not shown up at the ongoing meeting on aviation fuel issue at National Assembly in Abuja since Monday, May 9, 2022, till the time we are filling this report but are rather sending press statement to journalists to declare their stand on the matters arising. However, we await outcome of the meeting of Nigerian Airline Operators, House of Reps and other stakeholders present as this will determine what the trending issue will aggravate to” a source who pleaded anonymity told Standard Times Nigeria.

Aviation Fuel Price: Mixed reactions trail Oil Marketers, Airline operators claim
ZAINAB JUNAID
An admixture of skepticism and mixed reactions has trailed the saga between oil marketers and airline operators on the actual rate at which Aviation fuel also known as JETA1, is supplied to Airline operators.
While the oil marketers under the aegis of Major Oil Marketers Association of Nigeria, MOMAN, alleged that it supplies aviation fuel at a benchmark of #540- #550 per litre to all airlines, Airline operators of Nigeria, AON claimed that aviation fuel is supplied to them at the rate of #700 per liter which was major reason for the proposed shelved strike. MOMAN maintained that with the intervention of Nigerian National Petroleum Corporation, NNPC, aviation fuel arrived Nigeria marine terminal tank at a rate between #480 and #500 per litre depending on the logistics efficiency of the operators, and is sold at Ikeja Tarmac for #550 per litre, While it is sold to other airports outside Lagos at a rate of #570 and #580 per litre.
However, the association claimed that NNPC has been subsidizing the price of Aviation Turbine Kerosene, ATK, for few weeks now given the humongous #4 trillion subsidy.
With the intervention of NNPC and the fact that the corporation uses the nominal Central Bank of Nigeria (CBN) exchange rate, no independent importer would import aviation fuel as it is unable to access foreign exchange at the same rate. This has made NNPC the major importer of aviation fuel for now, even though the product is deregulated. The association did not see any problem troubling the airlines but affirmed that AON is looking for ways to gain more intervention from government.
AON on its part claimed that the president approval of 25,000 metric tonnes meant to be sold at landing rates to airlines has not been actualized in reality which has been a major bottleneck as it really compounded their issue. NNPC refusal to make available 25,000 metric ton of aviation fuel approved by President Muhammad Buhari to be sold to airlines at landing rates to ameliorate the losses suffered over the months as been a bone of contention.
A meeting held to resolve the juggernaut between the two parties was attended by the airline operators, Group Managing Director of the Nigerian National Petroleum Company, (NNPC) MeleKyari, Governor of Central Bank of Nigeria (CBN), Godwin Emefiele and other stakeholders and chaired by the Speaker of the House, Hon. Femi Gbajabiamila, resolved that six million litres of jet fuel would be made available through the intervention of the CBN governor, at the rate of N480 to the operators.
“The NNPC and the airline operators both agreed that in the interim of three months, the marketers of choice that they are comfortable with will be supplied with the jet fuel. “Airlines will be given opportunity to start processing applications for their personal license to be able to import their own jet fuel. “Airlines will get allocation for the next three months through the companies they nominated.
In the process of application for license, midstream should as much as possible grant waivers that would not touch on the security and safety of the process. Committee chairmen on aviation and downstream should follow up.
” In view of the resolution, another meeting was called for by house for all representatives to be attend to finalize the issue at hand but information at our disposal revealed that MOMAN representatives have not shown up at the ongoing meeting on aviation fuel issue at National Assembly in Abuja since Monday, May 9, 2022, till the time we are filling this report but are rather sending press statement to journalists to declare their stand on the matters arising. However, we await outcome of the meeting of Nigerian Airline Operators, House of Reps and other stakeholders present as this will determine what the trending issue will aggravate to” a source who pleaded anonymity told Standard Times Nigeria.

ation uses the nominal Central Bank of Nigeria (CBN) exchange rate, no independent importer would import aviation fuel as it is unable to access foreign exchange at the same rate. This has made NNPC the major importer of aviation fuel for now, even though the product is deregulated. The association did not see any problem troubling the airlines but affirmed that AON is looking for ways to gain more intervention from government.
AON on its part claimed that the president approval of 25,000 metric tonnes meant to be sold at landing rates to airlines has not been actualized in reality which has been a major bottleneck as it really compounded their issue. NNPC refusal to make available 25,000 metric ton of aviation fuel approved by President Muhammad Buhari to be sold to airlines at landing rates to ameliorate the losses suffered over the months as been a bone of contention.
A meeting held to resolve the juggernaut between the two parties was attended by the airline operators, Group Managing Director of the Nigerian National Petroleum Company, (NNPC) MeleKyari, Governor of Central Bank of Nigeria (CBN), Godwin Emefiele and other stakeholders and chaired by the Speaker of the House, Hon. Femi Gbajabiamila, resolved that six million litres of jet fuel would be made available through the intervention of the CBN governor, at the rate of N480 to the operators.
“The NNPC and the airline operators both agreed that in the interim of three months, the marketers of choice that they are comfortable with will be supplied with the jet fuel. “Airlines will be given opportunity to start processing applications for their personal license to be able to import their own jet fuel. “Airlines will get allocation for the next three months through the companies they nominated.
In the process of application for license, midstream should as much as possible grant waivers that would not touch on the security and safety of the process. Committee chairmen on aviation and downstream should follow up.
” In view of the resolution, another meeting was called for by house for all representatives to be attend to finalize the issue at hand but information at our disposal revealed that MOMAN representatives have not shown up at the ongoing meeting on aviation fuel issue at National Assembly in Abuja since Monday, May 9, 2022, till the time we are filling this report but are rather sending press statement to journalists to declare their stand on the matters arising. However, we await outcome of the meeting of Nigerian Airline Operators, House of Reps and other stakeholders present as this will determine what the trending issue will aggravate to” a source who pleaded anonymity told Standard Times Nigeria.