The Major Oil Marketers Association of Nigeria (MOMAN), which represents oil marketers, has criticized aircraft operators for claiming to purchase aviation gasoline at N700 per liter.
The proposed strike action, which was supposed to start yesterday, was halted after the Federal government and other stakeholders appealed to the airline operators, who were operating under the auspices of Airline Operators of Nigeria, or AON, to lower the high cost of aviation fuel, which is N700 per litre.
The MOMAN Executive Secretary, Mr. Clement Isong, quickly criticized the N700 per liter assertion, stating that the group is not aware of any locations in the nation where aviation fuel is offered for that price.
In response to questions about the matter from the media, Isong stated: “I am not aware that aviation fuel being marketed anywhere for N700 per litre at the moment. The Nigerian National Petroleum Company Ltd. has intervened and is currently introducing ATK.
The total cost of the tank is approximately N500 per liter. It costs between N540 and N550 a liter if we use the nearby airport in Ikeja as a comparison.
“Now that NNPC is importing and selling ATK at a discount, no sensible person will go and import it. The product is being brought in by NNPC since it is being exchanged for oil, and the Central Bank of Nigeria exchange rate is used to rate N419 to a dollar.
“The product is deregulated in the interim. Therefore, at that exchange rate, no average individual could go and get it. You cannot import the product and sell it for N550 per liter at the black market rate of N589/$.
He went on to say that because importing aviation fuel would be a poor business move, the NNPC’s action has deterred merchants from doing so.
“ATK is a product that is handled with extreme caution. It is constantly screened. There are additional handling expenses because it is transported by specialized trucks.”
According to him, MOMAN’s investigations also revealed that Nigeria had lower prices for aviation fuel than other West African nations.
The price of aviation fuel in Ghana is 1.25 dollars per liter, plus or minus premium, at Platt, North-Western Europe.
It is being sold for 5.70 dollars a gallon, or 1.51 dollars per liter, in Liberia and Sierra Leone. So, those are your pricing in West Africa.
“Now, if you want to convert that to Naira, it is less expensive if you use the NNPC price, which is N540. It is also less expensive if you use the N700 they are stating.”
Due to the NNPC’s interference, we are not selling it for N700 per litre. With the NNPC pricing, it is actually around 90 cents per liter.
However, Isong felt sympathy for the Federal Government, the airlines, and regular Nigerians who are facing the repercussions of the rise in crude oil prices on the global market.
He attributed the increase in the cost of crude oil and its byproducts, including kerosene, gasoline, diesel, and aviation fuel, to the ongoing conflict between Russia and Ukraine.
“The airlines are aware of their goals, which gives them the right to raise their ticket prices. Although aviation fuel is a contributing component, it is not the sole factor that has increased.”
“Everyone in business will tell you that they are having difficulties, and operating costs have increased due to inflation. Every company, including the airlines, is having difficulties.”
He came to the conclusion that “perhaps they are seeking a bailout from the Federal Government because everyone needs some sort of bailout at the moment.”
