On Wednesday, May 11, the Nigeran National Petroleum Corporation (NNPC) said that it will not fix the price of aviation fuel, instead requesting that airline operators apply for an import licence.
Mele Kyari, the NNPC Group Managing Director, confirmed this in a statement released by the House of Representatives. This followed a meeting with AON, the NNPC’s GMD, as well as the Governor of the Central Bank of Nigeria (CBN).
He feels that because aviation fuel is a deregulated product, it cannot have a fixed price.
“So you cannot hold to any price, and indeed, what you have seen in the media is a N700 reference point. It cannot serve as a point of reference. It is determined by market conditions. Depending on the market, it could be more than N700. This market is changing. It is currently linked to the price of crude oil.
“It is our responsibility to ensure that we intervene. We did it. We brought in products in order to lower the price. We brought in cargo in March and April and made it available to the entire industry at N460,” the NNPC GMD said.
Femi Gbajabiamila, the speaker of the House, said shutting airline operations could cripple the government.
He said, “We are at the precipice today in Nigeria. It is a crucial moment for us. There is a crisis at hand. The shutdown of airline operations has the potential of shutting down this government. We cannot sit here as stakeholders and fold our arms and watch this happen.
“I hope that the outcome of this meeting will usher in a lasting solution to these challenges of Jet A1 bearing in mind that there is a laissez-faire economy of demand and supply.”