Airlines set to shut operations from monday
For the umpteenth time in 2022, the price of Jet A1, otherwise known as aviation fuel has climbed in the Nigerian market.
This time around, the price has skyrocketed to N700 per litre in some airports, while it sells for between N685 and N690 per litre in others.
The airlines through its umbrella body; Airline Operators of Nigeria (AON) has threatened to suspend operations from Monday due to the high price of the product.
But, the operators seem to be in a dilemma on airfares, as there are indications that they may not further increase the fares as they did about two months ago, despite the continuous rise in the price of the product in the local market.
The airlines had in March increased the base fare to N50,000, an action, which drew condemnation and investigation from industry stakeholders and the Federal Competition and Consumer Protection Commission (FCCPC), who accused them of price fixing.
AON said that the product is now being sold at N700 per litre in the country.
The airlines said that the situation was biting them hard.
Also, the committee set up the Federal Government, on aviation fuel, which included five members of AON and aviation fuel marketers to develop a new pricing template for the Jet fuel, failed to reach a compromise.
The committee had sat for about two weeks, but a source close to the committee confided in our correspondent over the weekend that members failed to reach a common ground.
Apart from the indigenous carriers, it was gathered that the situation is also affecting the foreign airlines, especially those from the West African countries that have now resorted to fueling their aircraft from their bases, rather than in Nigeria.
However, unlike in the past when the product was scarce in the local market, our correspondent can confirm that the aviation fuel is available in virtually all the airports, but the high rate was causing disruption to flight services in the local scene.
Besides, AON, in a statement to journalists on Friday evening threatened to ground operations from Monday due to the high price of the product in the local market.
The AON copied Sen. Hadi Sirika, the Minister of Aviation and Capt. Musa Nuhu, the Director-General of the Nigerian Civil Aviation Authority (NCAA) in the letter circulated to the media.
AON said that it had continued to subsidise its operations in the last four months despite the steady and astronomical hike in the price of JetA1 and other operating costs.
It lamented that over time, aviation fuel price has risen from N190 per litre to N700 currently, maintaining that no airline in the world could absorb the sudden shock from such an astronomical rise over a short period.
“While aviation fuel worldwide is said to cost about 40 per cent of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95 per cent.
