The Nigeria National Petroleum Corporation (NNPC) Ltd has brokered an interim agreement between oil marketers and Airline operators to start a transparent basis pricing in three-day time, a statement by the organization has shown.
This development, according to the statement, is coming on the back of a bid towards resolving the current aviation fuel price hike in the country.
“In three-day time, representatives from Major Oil Marketers Association of Nigeria (MoMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and the airline operators will sit down and agree on a transparent basis of pricing,” Mele Kyari, Group Managing Director, NNPC, said in the statement.
“Then secondly, we agreed that in the interim, between now and the 3-days that they will use a close basis of pricing,” he said.
According to Kyari, this means that they need to have a reference benchmark that is quoted transparently in the market and have a referenced exchange rate for naira so that anyone can compute.
“And then, they will also engage and operate on a premium which differs from customers to customers depending on the volume of products they buy and then the credit limit that you are ready to do,” he said.
“So this is one thing that you can negotiate in 3-days and close so that they forward a transparent basis of pricing.”
Kyari expressed belief that this will help bring to close the discrepancies experienced in the market.
“This will no doubt throw up the actual value of the product on the market but you will not see huge discrepancies that we have seen where some people are selling at N445 and N630.
“This will completely bring it to almost closure that you will not see all these discrepancies,” he said.
The Group Managing Director of NNPC also noted that the marketers will sell for the next 3-days at N500 per litre and on day 3 to 4, they will switch to the new formula that everyone can access and compute.
He expressed belief that as requested by airline operators association of Nigeria, they will be granted their authority to import petroleum products particularly Aviation Turbine Kerosine (ATK), so they can have a way of benchmarking the sales from other customers, they can also bring in cheaper product whenever it is possible.