July 16, 2024

Aviation industry players agree on Jet fuel pricing formulae


Olubunmi Martins

Stakeholders in the Country’s aviation sector have reportedly come to an understanding on the lingering issue of Jet fuel pricing, giving  rise to resumption of normal scheduled flights.

This was the outcome of the meeting convened by the Nigerian National Petroleum Corporation (NNPC) with the  airline operators, aviation fuel marketers and other stakeholders. The meeting was coordinated by  Mr Adeyemi Adetunji, Group Executive Director, Downstream of NNPCL, Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage & Retailing Infrastructure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

It will be recalled that the scarcity of Jet A1 fuel and price volatility in the last two weeks , had caused frequent flight cancellation and the near collapse of air travel services in the country.

The Group Managing Director of the NNPC, Mallam Mele Kyari, prompted by the leadership of the National Assembly,  called  for truce  with assurances that stakeholders will evolve a workable solution before the end of this week.

EnergyDay had reported last week that initial meetings between NNPC and aviation stakeholders resolved to benchmark the price of aviation fuel at N500 per litre as a stop gap  pending the approval of a stable price template.

A major Industry player who preferred to be anonymous confirmed to EnergyDay that  a clear cut progress on key issues bothering on fuel pricing and supply mechanism have been attained and is hopeful  that the implementation progress will be successful.

He further confirmed that jet fuel pricing will be predicated on Platt price quote. He is however not certain if the Central Bank of Nigeria will provide foreign exchange waivers as requested by the oil marketers for importation of the product.

Aero Contractors ,in its public bulletin to customers, said its flight schedules are still affected by the problems associated with Jet fuel availability.

The Airline for instance, announced that a paltry number of 3 flights to Abuja from Lagos today with no scheduled flights to far flung locations like Maiduguri.

The Executive  Director , Nigerian Midstream and Downstream Petroleum Regulatory Authority is expected to provide further conclusions that will  reveal the modality for fuel importation procedures by new players including,  the dual role of Aviation Operators to engage in the direct importation of jet fuel.



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