The crisis between Oil marketers and airline operators was halted after the Nigerian National Petroleum Corporation (NNPC), and the National Assembly brokered an interim agreement among Oil marketers and Airline operators to allow the latter to import cheaper fuel.
This was disclosed in a statement issued by NNPC’s Group Managing Director, Mele Kyari via its Twitter handle.
According to the statement, airline operators were licensed to import fuel in order to resolve the current aviation fuel scarcity and price hike in the country.
Read: NNPC’s 30 day Fuel scarcity: Why heads must roll
What Kyari is saying
In 3 days, representatives from MOMAM, DAPPMA and the Airline Operators of Nigeria will sit down and agree on a transparent basis of pricing.
He said, “It means that they have to have a reference benchmark that is quoted directly and transparently in the market, also a reference template for the naira so that anyone can compete and also engage and agree on a premium, which differs from customer to customer depending on the volume of the products you buy, and then the credit limit customers are ready to take.
He added that these are things that would be negotiated in 3 days so that they can close and have a transparent basis of pricing.
He revealed that this won’t throw out the actual value of the product in the market, citing that “we won’t see huge discrepancies in the market where some people are selling ” above 450 and some selling at 630, this will completely bring into closure that consumers will not see such prices.
Read: Fuel Scarcity: Uber, Bolt hike ride fares by over 100%
“Secondly, we agreed that in the interim between now and 3 days where they will close the basis of prices, the lowest we have seen as at 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 emphasize, they will sell for the next 3 days at N500 to a litre and on day 3, there will switch to new formula that everyone can accept and compute.
“Lastly, as requested by the airline operators of Nigeria, there would be granted license by authorities to import petroleum products, so that they can have a way of benchmarking the products from other customers and also bring in cheaper products whenever possible,” he added.
Back story
Nairametrics had reported earlier that the Federal Competition and Consumer Protection Commission (FCCPC) has ordered domestic airline operators to immediately discontinue the current implementation of airfare increases pending the outcome of its investigation, coming after airlines jacked up airfares by a minimum of 100%, with a one-way economy ticket selling at over N50,000, citing fuel challenges.
I’m interested… for the opportunity given to me…