{"id":186437,"date":"2022-05-09T15:06:35","date_gmt":"2022-05-09T14:06:35","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=186437"},"modified":"2022-05-09T15:06:35","modified_gmt":"2022-05-09T14:06:35","slug":"you-can-not-pressure-fg-to-control-aviation-fuel-prices-oil-marketers-tell-airlines","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/05\/09\/you-can-not-pressure-fg-to-control-aviation-fuel-prices-oil-marketers-tell-airlines\/","title":{"rendered":"You can not pressure FG to control aviation fuel prices, Oil marketers tell airlines"},"content":{"rendered":"<p>Oil marketers have accused that airline operators are attempting to pressurise the government to control the price of Aviation Turbine Kerosene (ATK), also known as aviation fuel, by fiat.<\/p>\n<p><span data-preserver-spaces=\"true\">Fiat is a formal authoritative order given with absolute sanctions.\u00a0<\/span><\/p>\n<p>Recall that the Airline Operators of Nigeria (AON) suspended its plans<span data-preserver-spaces=\"true\">\u00a0to shut down flight operations over a hike in the price of aviation fuel.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Tunde Oyebanji, immediate past chairman of the Major Oil <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/03\/15\/airline-operators-marketers-agree-on-aviation-fuel-price\/\">Marketers<\/a> Association of Nigeria (MOMAN), told ThisDay on Sunday.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He said if the government gives in to the pressure to control aviation fuel prices by fiat and the Nigerian National Petroleum Company (NNPC) Limited begins importing and selling to the airline operators below the market price, it would lead to another subsidy.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Oyebanji added that the airline operators should instead channel their efforts to ensuring airline passengers pay the appropriate price for tickets.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cAirline Operators are trying to pressurise the government to control prices by fiat. In the alternative, let people pay the appropriate price for airline tickets. Aviation is not a social welfare business. Why are international airlines that we also sell to, not threatening to stop flights,\u201d ThisDay quoted Oyebanji as saying.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to him, it was surprising that airline operators had not been able to proceed with plans to import aviation fuel even after the opportunity was given to them.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Maintaining that the price of ATK followed the international price of the product and the exchange rate, the marketer said the cost of importing the product was high.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">On his part, Olumide Adeosun, chairman, MOMAN, said the Russia-Ukraine war, foreign exchange scarcity, inflation, as well as logistics and administration costs were principal factors driving the increasing price of aviation fuel in the international and local markets.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Adeosun said traders of the product in the international market were putting a premium on-demand and supply and were selling their products to the highest bidder, making it difficult for local marketers to import the product and sell at a cheaper rate.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cRussia controls over 30 per cent production. What we are seeing is that traders are putting premium attention on the price of aviation fuel because all of us are scrambling for exactly the same barrel,\u201d Adeosun said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cSo, the traders are paying premium attention on demand and supply and they are selling to the highest bidders only. We should try and look at the financial factors and the predominant driver, look at all of the issues around storage cost, administration cost, and, of course, you have to think about where you are going to buy your next round of products from.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He added that international airlines entered into long-term contracts, which allowed them to secure supply of products for a long time and pre-empt the price of ATK on a month-on-month basis.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to Adeosun, airline operators in Nigeria bought products on demand.<\/span><\/p>\n<p>\u201cYou cannot do that when your business is dependent on the availability of fuel. Aviation fuel is not like petrol for taxi. You are not driving Uber. So, this is a very serious business that requires strategic planning,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil marketers have accused that airline operators are attempting to pressurise the government to control the price of Aviation Turbine Kerosene (ATK), also known as aviation fuel, by fiat. Fiat is a formal authoritative order given with absolute sanctions.\u00a0 Recall that the Airline Operators of Nigeria (AON) suspended its plans\u00a0to shut down flight operations over [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":186450,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[16587],"tags":[12775,37267,37266,10346],"class_list":["post-186437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-airline-operators","tag-aviation-fuel-price","tag-fiat","tag-oil-marketers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>You can not pressure FG to 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