- There is the possibility that the cost of airline tickets might continue to increase over the high price of aviation fuel
- This could be attributed to the inability of oil marketers and airline operators across the country to reach an agreement on the pricing template for aviation fuel
- Checks have shown that aviation fuel known as Jet A1 fuel price spiked to N570 and N607 per litre leading to the high cost of air tickets
With the fear of an imminent increase in the price of air transport due to the price of aviation fuel known as Jet A1, oil marketers and operators of different airlines have failed to reach a consensus.
Daily Trust reports that the marketers and the airline operators failed to agree on a fuel price template despite the warning by airliners that this could, in turn, affect the cost of transportation to over 100 per cent.
Those present at the meeting which took place on Tuesday, March 15, include the executive director, Distribution Systems, Storage & Retailing Infrastructure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Ogbugo Ukoha and the group executive director Downstream of the Nigerian National Petroleum Corporation (NNPC), Adeyemi Adetunji.
The meeting between the parties was held after members of the House of Representatives agreed that Jet A1 fuel would be sold at N500 per litre for three days while operators would be given a license to import fuel.
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However, to arrive at a pricing template, the AON and the fuel marketers represented by the Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the NNPC representatives met and both parties made their positions known.
Obiora Okonkwo, the chairman of United Nigeria Airlines said that buying fuel at N500 is not sustainable.
More trouble for travellers as airlines cancel, delay flights, contemplate airfares increase as fuel hits N625
Okonkwo argued that the high price of aviation fuel would in turn lead to the increase of airline ticket fares and that no Nigerian would be able to fly.
Also noting that because the aviation industry delivers social service, any increase in the price of air tickets would affect every sector of the economy.
Okonkwo's argument followed checks that showed that fuel is sold between N570 and N607 across various states of the country.
Challenges experienced by oil marketers
Speaking on behalf of oil marketers, Ngozi Ekeoma, the chairman of Nepal Oil and Gas services limited debunked claims that aviation fuel marketers have become a cartel.
She explained that the parameters used in determining the price of fuel per time are unambiguous.
“Aviation fuel is not a cartel based product. The parameters for determining prices are there. As of today, a vessel costs $25,000 per day at the port.
"There is the marine cost, we have problems even loading the ATK (the jet fuel). We use trucks that run on diesel. This also adds to the costs. We will have to put all of these costs. For every litre, I am paying FAAN (Federal Airports Authority of Nigeria) N3:50k.”
After several arguments, both parties were asked to submit three names each which would work overnight with the NNPC representatives to come up with a new pricing framework.
The meeting was further adjourned to 4 pm on Wednesday, March 16, to enable selected team members to work overnight and agree on a new price that can be used as the basis of the pricing framework.
Government begins investigation on fare hike by Nigerian airlines for domestic travels, orders reversal
According to FG, it is wrong that airlines could come together and agree on a fixed price in a market that is supposed to be open.
Although Airlines came out to debunk the news that it increase price despite flight ticket evidence, FG has ordered a new pricing system.
Nigerian man in the US shares reasons American embassy denies people student visas
Meanwhile, in another news, a Nigerian man who is currently residing in the United States has made some revelations as to why most of his fellow countrymen seeking academic opportunities in the states are not granted students visa.
In a series of tweets he made with his Twitter handle @MisterNigerD, he said the key to scaling through the visa application hurdle is not giving the consular at the embassy any reason to believe that you will be staying back in the US after your studies.
@MisterNigerD stated that another huge pitfall to avoid is to say that you would be getting a job when your school is on holiday in the state.
This, according to him, will get your visa application denied.