Fuel Scarcity Hits Aviation Sector, Jet A1 Sells For N440 Per Litre

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Aviation stakeholders, however, said fuel contributes about 40 per cent to 50 per cent of airlines operational cost.

Speaking to LEADERSHIP, the secretary general, Aviation Round Table Initiative , Capt. John Ojikutu , said outside the government costs from subsidies, there are additional costs from the marketers which include local transportation from Apapa to the airport.Another cost that triggers hike in aviation fuel, according to him, is the demurrage due to delays before the discharge into the magazines at the airport fuel depots.

“This suggestion was directed to the office of the National Security Adviser in 2010. The suggestion has been sent to the NNPC and the National Assembly. Nothing has come out of it because, as I was told in 2010, the security implications of having hundreds of tankers parked at the depot area is a source of concern. The area can easily attract moles or insiders who could use the tankers as sources of weapons of attack on the airport, a target of national economic importance.

Irukera said the commission’s investigations revealed that airline operators in supposedly association meetings discussed multiple industry-wide issues, particularly challenges experienced by their members. “Specifically, Section 107 forbids competitors from fixing prices, while Section 108 prohibits any conspiracy, combination, agreement or arrangement between competitors in any manner that unduly restrains or injures competition.

 

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