Aviation fuel price soars above N240 per litre - FAITH ADAMA'S BLOG

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Wednesday, 27 July 2016

Aviation fuel price soars above N240 per litre




The pump price of aviation fuel (popularly known as Jet A1) yesterday surged above N240 per litre, representing 100 per cent increase from the N120 per litre price sold about this time last year.

The development also jolted the flight schedule of domestic airlines as cancellations and delays became the order of the day.
Nigeria’s aviation industry has been hit by severe scarcity of Jet A1 with prices rising steadily from N120 per litre to N150, N180 and eventually steadying at N200 per litre throughout last week.
The scarcity and exorbitant cost had resulted in several scheduled commercial flights either rescheduled or cancelled with attendant hardship and frustration on passengers.
The industry is reported to be losing between N300 and N500 on weekdays and weekends respectively due to the crisis caused by flight delays and cancellations.
It was, however, learnt that yesterday it had become almost impossible for airline owners to source fuel to power aircraft in their fleet and that the huge demand had forced the few marketers who still had the product at their depots to sell at between N240 and N250 per litre to airlines.
“It’s now all about demand and supply,” an airline official told Daily Sun on the 100 per cent rise in price of Jet A1.
“The depots are running out of stock and the price had been fluctuating between N170 and N200 per litre. As at yesterday, some of us bought at about N240 and N250 per litre because we just had to fly,” added the official, a spokesperson for one of the local airlines who won’t want to be named.
Three airlines, Arik Air, Dana Air and Air Peace have separately addressed the media explaining how they are grappling with flight schedule disruptions due to the severe scarcity of aviation fuel across the country.
“For the past week, the airline had to face another round of aviation fuel scarcity, which got worse over this weekend leading to many flight delays and cancellations,” said Arik Air spokesman, Banji Ola.
“At the root of the fuel supply crisis is low stock due to the inability of marketers to get the foreign exchange to import more Jet A1 fuel into the country. This has forced airlines to postpone flights while waiting for the fuel marketers to source and deliver the product.
“On many occasions, despite all efforts at engaging the marketers of fuel, flights may eventually be cancelled causing not only revenue loss for the airline but also inconveniencing or stranding the passengers,” Ola said yesterday.
The airline industry yesterday identified supply and infrastructural challenges of the marketers as some of the key factors responsible for the epileptic supply of aviation fuel.
There is also a distribution challenge as the discharging of vessels bringing Jet A1 and other petroleum products is done in the same jetty and loading various trucks for distribution to cities like Kano or Abuja take considerable effort and time.
The situation in the North is even more difficult since the product takes longer to be delivered due to the trucking distance.
Oil marketers have also resorted to trucking of aviation fuel to the airports because hydrants are not consistently available at the airports.
The Federal Government and oil marketers are working hard to address the supply and distribution challenges as marketers have assured that the situation would improve this week with the delivery of additional stock.