The Major Oil Marketers Association of Nigeria (MOMAN) on Monday refuted claims by airlines’ owners that Aviation Turbine Kerosene (ATK), also known as aviation fuel, was being sold at N700 per litre in some parts of the country.
The association’s Executive Secretary, MOMAN, Mr. Isong reportedly debunked the claims during an interview with the News Agency of Nigeria (NAN) in Lagos.
The Airline Operators of Nigeria (AON) had at the weekend threatened to suspend operations on May 9 (yesterday) over rising cost of aviation fuel which, they claimed, had risen to about N700 per litre from N190 per litre.
However, the airline operators suspended the planned industrial action following appeals by the Federal Government and other stakeholders in the aviation sector.
The Executive Secretary clarified: “I am not aware that aviation fuel is sold currently anywhere at N700 per litre. There has been an intervention by the Nigerian National Petroleum Company Ltd., which is now bringing in ATK.
“It gets into tank, all costs together, at about N500 per litre. If we use Ikeja (Murtala Mohammed Airport, local as a bench mark, it is sold there by marketers between N540 and N550 per litre. Nobody with common sense will go and bring in ATK now that NNPC is bringing in product and selling it cheap.
“NNPC is bringing in the product because it is swapping it with crude and when it swaps it with crude it uses the Central Bank of Nigeria exchange rate of N419 to a dollar.
“Meanwhile the product is deregulated. So no normal person can go and get it at that exchange rate. You cannot use N589 (black market rate) to a dollar to bring in the product and sell at N550 per litre”, Isong added.
The industry leader pointed out that the intervention by the Nigerian National Petroleum Company Limited (NNPCL) had discouraged marketers from importing aviation fuel as doing so is not profitable, especially due to its filtering nature
He said: “ATK as a product is handled very carefully. It is continuously filtered. It is carried by special trucks, so there are extra handling costs.
“Even with these costs, it is sold at the tarmac between N540 and N550 per litre in Lagos and by the time you carry it all over the country including transportation cost, it will be sold at about N570 or N580 at the farthest airport from Lagos. There is nowhere aviation fuel is sold at N700 per litre”, he stressed.
Isong explained that enquiries made by his association indicated that ATK was cheaper in Nigeria when compared to other West African countries.
The Executive Secretary expatiated: “In Ghana, aviation fuel is sold at Platt, North Western Europe, plus premium or minus at 1.25 dollars per litre. In Liberia and Sierra Leone, it is selling at 5.70 dollars per gallon, which translates to 1.51 dollars per litre. So, those are your West African prices.
“Now, if you want to translate that to Naira, if you are using the NNPC price which is N540, that is cheaper and even if you use the N700 they are claiming, it is still cheaper.
“We are not selling it at N700 per litre because of the NNPC intervention. It is actually about 90 cents per litre with the NNPC price”, Isong added.
He empathized with the airlines, the government and ordinary Nigerians who are struggling with the consequences of the increment in the price of crude oil at the international market, noting that the increase in crude oil and its derivatives’ prices can be partly blamed on the ongoing Russia-Ukarine war.
The MOMAN leader said: “The airlines know what they want, which is justification to increase their air fares. It is not only aviation fuel that has gone up, even though it is a contributory factor.
“Cost of operation has gone up; there is inflation and anybody doing business will tell you that they are struggling. All businesses are struggling including the airlines.
“So, maybe they are looking for bailout from the Federal Government because everybody needs some kind of bailout at the moment”, Isong added.
