The Aviation Operators of Nigeria (AON) has warned that the safety of flights in Nigeria may be in danger because of the persistent hike in the price of aviation fuel.
The operators disclosed this in Abuja on Thursday at the public hearing organised by the House of Representatives ad hoc committee investigating the scarcity of aviation of fuel.
They also said they are struggling to maintain their aircraft as fuel now takes over 115 per cent of operation costs.
The motion
On Wednesday, the Chairman of the House Committee on Aviation, Nnoli Nnaji, had moved a motion calling for investigation into the scarcity of aviation fuel.
Following the adoption of that motion, the House had mandated the chairman alongside those of Petroleum Downstream and Petroleum Upstream to meet with the GMD of NNPC Limited, Airline Operators, Jet A1 marketers and others.
Hike in air tickets
Last month, major airlines in Nigeria hiked their fares by over 100 per cent. Some airlines now charge N50,000 flat rate for tickets.
AON denied that the increment was coordinated.
The Federal Competition and Consumer Protection Commission (FCCPC) had ordered airline operators to immediately discontinue the implementation of the new air fares pending the outcome of its investigation.
PREMIUM TIMES had reported how Nigerians condemned the increment and called for government’s intervention to reverse the hike.
Hearing…
Allen Onyema, the CEO of Air Peace, said the price of aviation fuel moved from N190 per litre to N670 per litre within two weeks.
Mr Onyema, who is the vice president of AON, said the operators would have shut down operations if not for the political season and to support the current administration that has been supportive of the sector.
He stated that the operators cannot survive the next 72 hours because they are indebted and risk takeover by the Asset Management Corporation of Nigeria (AMCON).
Mr Onyema, while reacting to the claim by Ugbugo Ukoha, the executive director for Distribution System for Storage and Retailing Infrastructure in the Nigeria Midstream and Downstream Regulatory Authority, who had claimed that Nigeria has excess supply of Aviation Turbine Kerosene (ATK), said the regulatory authority is not sincere on the state of things in the sector.
Mr Ukoha had said the country had 34 days of fuel supply, hence, the report of scarcity is false.
“ATK is a deregulated product, however, we licence every importer. In our schedule, we have licenced about 28 marketers who are licensed to bring in ATK in the last three months.
“From our records, we have sufficiency—because we also monitor the vessels as they come in to discharge. As of today, we have 34 days of sufficiency for ATK. All we can say is that there is enough volume to go round, I will be interested in knowing about this scarcity. With deregulation, the market forces are at play.”
Mr Onyema, while responding to the presentation by Mr Ukoha, said he was dismayed with the claim that fuel was in abundance, noting that operators have to source the fuel from any marketers at an exorbitant price.
“To say that I am saddened by certain responses is playing it down. The product is not available, I am surprised that he (Mr Ukoha) is saying there is sufficiency that will last for 34 days, Nigerians know that this thing is scarce. The flight cancellations are unimaginable. We fly 2 am, 3 am whenever we get the fuel.”
The Air Peace CEO said the House should intervene to make the price of ATK sell for a minimum of N200 per litre.
The Deputy Speaker, Idris Wase, who chaired the hearing, also berated Mr Ukoha. He accused him of being used to blackmail the government in a political season.
He warned that no one will blackmail the government.
“As a politician, I want to tell you that I am concerned. We are moving into an election period, nobody should blackmail our government,” he said.
He noted that the surge in price is as a result of hoarding by marketers and negligence of the regulatory authorities to do their work.
Mr Wase also faulted the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Babatunde Irukera, for not monitoring the activities of the ATK marketers.