Airline Operators of Nigeria, AON, has given a graphic picture of how major oil marketers are shortchanging them on the cost of avaition fuel.
It will be recalled that the operators had two months on heels of the astronomical prices of avaition fuel otherwise called Jet A1 given a 3 day notice after which they would suspend flight operations in the country.
At the time the operators were paying about N700 per liter.
But the House of Representatives via a motion intervened in the matter and later met with the stakeholders in the avaition section including the Group Managing Director GMD of the Nigerian National Petroleum Company NNPC where a truce was eventually reached to sell the fuel at N500 for the period.
An agreement was also reached that the Operators would be given licences by NNPC to import the fuel.
But two months after, the airline operators last week issued a notice of another flight suspension to which the House leadership again intervened.
Appearing before the special committee led by the Speaker of the House of Representatives, Femi Gbajabiamila on Monday, the Vice President of AON, Mr. Allen Onyema, who’s chairman of Air Peace however said that they were denied the delivery of 25,000 metric tons of fuel approved by President Muhammadu Buhari which was to be sold to them at the landing cost.
He however accused the NNPC and some marketers of ripping them off.
Consequently, he said they were asked to nominate 10 marketers they could trust to enable them handle the transactions.
Onyeama told the committee of how his association was invited by the Nigeria Midstream and Downstream Regulatory Authority (NMDRA) to notify them of the President’s gesture.
He also said that while he alerted the NNPC GMD, Mele Kyari informing him of the President’s gesture and their selected marketers, the response he got was not friendly.
“We were invited by the Midstream and Downstream Authority and we were told that the president approved 25, 000 metric tonnes for us as a palliative to help us. We were very grateful to the president. It was not free. We were happy. We were told to nominate marketers that would market this product for us. We were told to have meeting with these marketers. We called all the marketers. We held meeting with them. We decided the logistics, so they would take their logistical costs and everything and at the end of the day that fuel was getting to them, they told us at N335, so we put everything together and it would be getting to less than N400 for the cost and we said even if they sell to us at N450 it would be okay.
“We were told that a week later that is when the consignment would be arriving Nigeria and when this happened, the next we got to hear from the marketers was that they had already been given the consignment that we were all jostling for. So we waited thinking that they would sell as agreed. They never.
“I actually called the MD of NNPC, in the presence of our members. We wanted to hear from him. He answered that there was no way there would leave us to get direct products that it was dangerous. But I said no, that the marketers you are going to give are the same marketers that would handle it for us. He said he did not want any crash or anybody adulterating it. I said how could they adulterate it because they are the same marketers. We are not taking it on our own. Long and short of the story is that this product was not given to us and we noticed that it continued rising and rising,” he said.
The President of the Association, Abdulmanaf Yunusa who’s also the Chairman of Azman Air corroborated the allegation, saying that NNPC denied them the allocation approved by the president for them to the nominated marketers.
But in his response, Kyari said his refusal was hinged on the safety issues, stressing that releasing aviation fuel directly to operators, or even marketers was risky.
“Rt Hon Speaker it is more complex than they say. Somebody must handle aviation fuel. We cannot surrender the safety of Nigerians to just anyone. It is not every marketing company that can handle ATK including the chairman’s company. We cannot give him. He has marketing company. We cannot give ATK to handle. That is why they have to bring the people that we can deal with”, he said.
It will be recalled that on March 14, 2022 when the first meeting of the stakeholders held with the deputy speaker of the House, Hon. Ahmed Idris Wase presiding, he had lashed out at the
Chief Executive, Nigerian Midstream and Downstream Regulatory Authority, NDMPRA, Ahmed Farouk represented by an Executive Director, Ogbogu Ukoha who said the prices of fuel had been discounted.
Wase had asked the regulatory body the current price of the product and why it was so exorbitant but was referred to the marketers who however sidestepped the questions and could not give specific answers.
Wase said: “As far as I’m concerned, the basic issues that we left to come back today have not been addressed. First is on the agreement, your resolution that’s is the basis to proceed on any meeting and I read out what we resolved the other day and that’s why I’m asking you the questions. I specifically asked the other person when he said they sell at lost I said what was the unit cost at that time you were selling at lost so that we will now know. And I said here you are just using semantics and language. Here, I am after facts. We are on fact finding we are not on language here and I want to insist that please let’s be serious.
“Like I did mention to him, the House can go further, if you want us to go on expanded investigation we will do that. As far as I’m concerned I am not willing to compromise what is in the interest of our own country.
“You are supposed to regulate their (oil marketers) activities, are you just giving the licence? What are the minimum requirements; what is expected of that company that you are authorizing them to bring in this product; is it that they have the opportunity and then the leverage to tell you whatever rate they want and it has to stand? No, I don’t think so”.
In their remarks at the meeting, the oil marketers represented by Olumide Adeosun thanked the House for their intervention.
“We are grateful for your intervention. The last thing any marketer wants is to create a saturation where the general public has to pay far beyond what they can afford for any product. The resolution that we reached today is one that is attainable and we look forward to working with our colleagues in the aviation sector so that we can have an efficient sector for Nigerians”, he said.
However, the marketers were absent at Monday meeting.
The deputy speaker had remarked that they ought be handy to give some explanations to some issues, expressing displeasure with the GMD for speaking on their behalf.
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