He noted that some of the oil firms had expanded the credit of most of the buyers like Air Peace, Arik and Maxi Air. Olumide Adeosun, the chairperson Major Oil Marketers Association of Nigeria, said the marketers have been selling fuel to the operators on credit.Īccording to him, the increase in international oil prices had an impact on the liquidity of the oil marketers and the airline operators. The marketers have their own position, and they are saying we cannot sell in the price suggested here,” he said. We have sufficient product, what we observed is that it is a commercial challenge between the airlines and the marketers. “Yes, we have a role to forestall cartels and all, but that is not what we have noticed in this case. He also dismissed the allegation of marketers forming cartel to distort the price of the ATK fuel. The hearingĪt the commencement of the hearing, the Deputy Speaker, Idris Wase, asked Ugbugbo Ukoha, the executive director for Distribution System for Storage and Retailing Infrastructure in the Nigeria Midstream and Downstream Regulatory Authority, to brief the committee on the steps taken so far to crash the price of ATK. Some airlines now charge N50,000 flat rate for tickets. Mr Nnaji brought the motion some weeks after major airlines increased their fares by over 100 per cent. The committee was mandated by the House on Wednesday to conduct the investigation following a motion by the Chairperson of the House Committee on Aviation, Nnoli Nnaji. The resolutions were read out by the Group Managing Director of NNPC Limited, Mele Kyari, during the hearing while the Deputy Speaker, Idris Wase, said the report of the committee will be considered and adopted by the House on Tuesday. These resolutions were adopted on Monday during the investigative hearing by the House of Representatives ad hoc committee investigating the scarcity of jet fuel. The Nigerian government is also to allow the airline operators to import ATK by granting them licences. The new price will be in place for 72 hours after which the marketers and the AON are to agree on new price modalities. The two unions agreed to peg the price of Aviation Turbine Kerosene also known as Jet A1 fuel at N500 per litre from the current price of N630. Airline Operators of Nigeria (AON) and the Major Oil Marketers Association of Nigeria have reached an agreement to forestall the shutdown of local aviation activities in the country.
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January 2023
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