Major Oil Marketers Association of Nigeria (MOMAN) has opened talks with domestic airlines to end the crisis in supply of aviation fuel to the industry
Executive Secretary of MOMAN, Mr Clement Isong, in an interview with journalists, yesterday, said the parley became necessary following interventions by the House of Representatives intervention and the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the plight of air passengers on domestic routes.
He hinged the crisis experienced by aviation sector operators to the increase in price of crude oil and its derivatives like aviation fuel, petrol, diesel and kerosene fuelled by the invasion of Ukraine by Russia..
“We understand their pains even the Federal Government that is paying a higher cost to subsidise petrol. The rise and fall of oil prices is cyclical. We have been here before and we are hoping that within a short period that international supply of crude will adjust to meet demand, and that prices will come down to more acceptable levels.”
Isong said the situation could also be eased if oil marketers are able to get foreign exchange at decent rates instead of sourcing from the parallel market.
He, however, advised the domestic airlines to change the way they do business to enable them get steady supply of aviation fuel to run their operations.
“There is aviation fuel in the country. However, the product is expensive. Many of us who have contracts with international airlines have to keep stocks for them. Now, international airlines pay for their products based on a pricing formula so it is predictable. There is no quarrel on the price, it is platts plus premium.
“The Premium is fixed. The Platts, which is a price benchmark service for the oil industry, goes up and down pending on the international market price.” – The Sun.
