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Tag: Aviation Fuel

  • Real reason Dangote Refinery crashed prices of diesel, aviation fuel again

    Real reason Dangote Refinery crashed prices of diesel, aviation fuel again

    Dangote Petroleum Refinery has announced a further reduction in the prices of diesel and aviation fuel to N940 and N980 per litre, respectively.

    The Head of Communication, Dangote Group, Mr Anthony Chiejina, on Tuesday in Lagos, said the development was in consonance with the company’s commitment to cushioning the effects of economic hardship in Nigeria.

    The price reduction is coming at the wake of its widely celebrated price reduction to N1,000, from N1,200, barely two weeks ago.

    According to Chiejina, the price change of N940 is applicable to customers buying five million litres and above from the refinery, while the price of N980 is for customers buying one million litres and above.

    He revealed that the refinery had brokered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers purchase fuel at affordable prices.

    He added that the partnership would be extended to other major oil marketers.

    “You can buy as low as one litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.

    “The essence of this is to ensure that retail buyers do not buy at exorbitant prices.

    “The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce these new prices, and hope that it would go a long way to cushioning the effect of economic challenges in the country,” he said.

    Recall that President Bola Tinubu had commended the company for the initial price reduction, from N1,200 to N1,000 per litre, describing it as an “enterprising feat.”

    Also, the Director General, Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadir, described the development as an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy.

    Ajayi-Kadir said the reduction would have far-reaching effects in critical sectors like industrial operations, transportation, logistics, and agriculture; easing the high inflation rate in the country and returning many companies back to operation.

  • Aviation fuel crisis can’t be tackled immediately – FG

    Aviation fuel crisis can’t be tackled immediately – FG

    The Federal Government has said there are no immediate solutions to the current crisis rocking Nigeria’s aviation sector.

    The Minister of Aviation, Hadi Sirika, stated this at a meeting with officials of the Airline Operators of Nigeria in Abuja on Tuesday.

    He noted that the cause of the major challenge in the industry is a global issue, and that Nigerian government was making efforts to address the challenges.

    The government however admitted it could not tell the stakeholders as to when the solutions to the crisis would materialise.

    Domestic airlines in Nigeria have been faced with a stiff challenge posed by the hike in the price of aviation fuel, popularly called JetA1.

    The cost of the commodity has jumped from less than N300/litre to over N800/litre within about five months.

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    This has also warranted an increase in airfares by airlines that could manage to get the commodity, while others that could not survive the situation, such as Aero Contractors, have temporarily suspended operations.

    However, the airlines currently operating have continued to delay or cancel flights due to difficultly in accessing JetA1, a development that has caused untold hardship to travellers.

    “Energy crises is real and it is global. Today there is aviation fuel problem all over the world. From America to New Zealand. It is aggravating in Nigeria because we don’t produce the product,” Sirika told stakeholders.

    “It is aggravated also because the foreign exchange is scarce in Nigeria and the source of earning the foreign exchange has also has dwindled,” he added.

    He said the Federal Government had in the past sourced 10,000 metric tonnes of aviation fuel for domestic airlines, adding that the government was wiling to do more.

    “As we speak, the government is in the process of finding a permanent solution to this issue,” Sirika further stated.

    Outlining some of the the solutions, the minister said it would include, “importation of the product at the appropriate price, accelerating the refurbishment of our refineries and also wait for the coming on stream of Dangote Refinery to boost supply of the product.”

    He, however, noted that this would not happen soon.

    “So when you ask how soon, I wouldn’t know when Dangote will come on stream, I wouldn’t know how soon the refineries will be fixed. I wouldn’t know when imports would become sufficient. But the government is working towards all these to happen.”

    The minister said he would meet with relevant stakeholders including the Central Bank of Nigeria so that the airlines could access forex at the official rate rather than the black market price.

    The President, AON, Abdulmunaf Sarina, said the aviation fuel crises began from N180/litre, but had now jumped to N1000/litre, adding that accessing forex crises was a huge burden on the Industry.

    “The rate at which the dollar is escalating now is very alarming. Everyday, a difference between of N10 to N15 Naira is added at the parallel market. Last week Monday, it was N610 but today it is N670 to one dollar,” he said.

    On his part, the Vice President, AON, Allen Onyema, said the airlines were satisfied with the government intervention in the industry, but admitted the solution to the crisis was not in the short term.

  • We are in a major crisis – Airline operators lament

    We are in a major crisis – Airline operators lament

    The Airline Operators of Nigeria (AON) has said the aviation sector of the Nigerian economy has been hit by a major crisis with the acute scarcity of aviation fuel otherwise known as Jet-A1.

    The airline operators disclosed that for this reason, there will be major disruptions in scheduled flight operations including cancellations and unnecessary delays across all airports in the country.

    TheNewsGuru.com (TNG) reports Prof. Obiora Okonkwo, AON’s Spokesman, who made this known in a statement on Friday, also disclosed that this was a foreseen but unintended consequence of the aviation fuel scarcity in the country.

    While pleading for the understanding of the travelling public, Okonkwo said efforts were being made to address the development and restore normal flight operations.

    The statement reads: “This is to notify the members of the public especially, consumers of air transport services in the country, that the aviation sector has been hit by a major crisis with the acute scarcity of aviation fuel otherwise known as Jet-A1.

    “For this reason, there will be major disruptions in scheduled flight operations including cancellations and unnecessary delays across all airports in the country.

    “This is a foreseen but unintended consequence of the aviation fuel scarcity in the country.

    “We, therefore, plead for the understanding of the travelling public to bear with our members as efforts are currently being made to address the development and restore normal flight operations.

    “AON is committed to rendering seamless and uninterrupted air transport service across the country”.

  • Headaches for air travelers as airlines announce plan to start cancelling, rescheduling flights

    Headaches for air travelers as airlines announce plan to start cancelling, rescheduling flights

     

    Nigerian airlines have given notice that there will be flight reschedules in the coming days over scarcity of JET A1, otherwise known as aviation fuel.

    TheNewsGuru.com, (TNG) reports this was disclosed in a statement on Friday.

    According to the umbrella body of the airlines, Airline Operators of Nigeria (AON), the aviation sector has been hit by a major crisis, and it will result in flight cancellations and unnecessary delays across all airports in the country.

    Recall that three months ago, the aviation industry had also experienced rescheduling of flights, as well as cancellations, after aviation fuel skyrocketed to N700 from N150 per litre.

    In the recent statement released by the AON spokesman, Obiora Okonkwo, the airlines stated, “This is to notify the members of the public, especially, consumers of air transport services in the country, that the aviation sector has been hit by a major crisis with the acute scarcity of aviation fuel otherwise known as Jet-A1.

    “For this reason, there will be major disruptions in scheduled flight operations, including cancellations and unnecessary delays across all airports in the country.” Adding, “This is a foreseen but unintended consequence of the aviation fuel scarcity in the country.”

    The airlines are suffering from the high cost of importated petroleum products, that has made aviation fuel scarce and almost unaffordable, thereby, increasing the cost of operation or expenses of the Nigerian airlines.

    Recall that Aero Contractors had also shutdown its passenger flight operation due to rising cost of maintenance of its aircraft, that has made it impossible for the company to continue the passenger operation.

    Meanwhile, Dana Airlines was recently suspended from flying in Nigeria’s airspace over its financial struggles and reoccurring incidents that threatens the life of its passengers.

  • We cannot intervene in rising price of diesel, aviation fuel-FG

    Minister of State for Petroleum Resources, Chief Timipre Sylva has maintained that the Federal Government cannot intervene in the current rise in diesel and aviation fuel saying that  the prices for both products are deregulated.

    Sylva stated this while speaking in Abuja yesterday.

    He stressed that the prices of both commodities fluctuate because they are imported and influenced by the changing  foreign exchange rate.

    “So, it is not within the purview of the government to fix the prices at all. And of course, the actual issue is also the foreign exchange. People cannot access foreign exchange to import this. For the time being, NNPC has been the main importer of this product but what we are trying to do is to democratise the importation so that the aviation fuel users themselves should be able to access foreign exchange and be able to import this product.

    “It’s not a supply issue at all. It’s just a global problem. You know that the problem in Ukraine and Russia has actually exacerbated the rise in prices; it is not in Nigeria alone. The high cost of diesel is also because of the same reason and these are not subsidised commodities, they are deregulated commodities so actually, it is not within the purview of the government to intervene in the price,” Sylva said.

  • Airline Operators suspend planned services withdrawal

    Airline Operators suspend planned services withdrawal

    Airline Operators of Nigeria (AON) has called off its planned withdrawal of services over astronomical rise in aviation fuel.

    This is contained in a statement jointly signed by the operators and made available to newsmen in Lagos on Sunday.

    The airlines said they would start fresh round of dialogue with government with the hope of reaching an amicable and lasting solution.

    The statement read, “Airline Operators of Nigeria (AON) wishes to inform the general public that further to numerous calls from the highest echelons in government with promises to urgently intervene in the crises being faced by airlines due to the astronomic and continuously rising cost of JET A1.

    “That the AON has acceded to requests to withdraw the action for the time being while we allow for a fresh round of dialogue with government in the hope of reaching an amicable solution.

    “We have also reached this decision with the highest consideration for our esteemed customers who have been faced with uncertainty over the last few days and to enable them to have access to travel to their various destinations for the time being during the period of discussions with relevant authorities.

    “In view of the above and in the interest of national economy and security considerations, AON hereby wishes to notify the general public that the earlier announced shutdown of operations on May 9, 2022 is hereby suspended in good fate pending the outcome of hopefully fruitful engagement with government.”

    The statement was signed by six members of the AON, including Alhaji Shehu Wada, Executive Director, Max Air; Dr Obiora Okonkwo, Chairman, United Nigeria Airlines, and Capt. Roy Ilegbodu, CEO, Arik Air.

    Other signatories are Capt. Abdullahi Mahmood, CEO, Aero Contractors; Alhaji Faisal Abdulmunaf, MD, Azman Air and Mr Allen Onyema, Chairman, Air Peace.

  • Aviation fuel: Sirika begs domestic airlines to shelve planned operations shutdown

    Aviation fuel: Sirika begs domestic airlines to shelve planned operations shutdown

    The Minister of Aviation, Sen. Hadi Sirika, has begged Nigerian airlines to suspend the planned shutdown of operations from Monday over the high cost of aviation fuel from N190 to N700 per litre.

    Sirika made the appeal in a statement issued by his Special Assistant on Public Affairs, Mr James Odaudu, on Saturday in Lagos.

    Thenewsguru.com reports that Nigerian airlines, under the aegis of Airline Operators of Nigeria (AON), on Friday announced plans to shut down operations from Monday due to the high cost of aviation fuel.

    The minister urged the airlines to consider the multiplier effect shutting down operations would have on Nigerians and global travellers.

    He said: “The attention of the Minister of Aviation, Sen. Hadi Sirika, has been drawn to reports that the nation’s air transportation system will be disrupted as from Monday.

    “This follows the threats by airline operators to shut down operations as a result of the rising cost of Jet A1, otherwise known as aviation fuel.

    “As the ministry charged with the industry, we are greatly concerned about the difficulties being faced by the airlines in procuring aviation fuel which has resulted in spiralling costs in air transportation in the immediate past.

    “We also acknowledge that the airlines are in the business to make profits while servicing the very critical sector that is not only the preferred mode of transport for most Nigerians but the main international gateway to the nation.

    “Unfortunately, the issue of fuel supply is not within the purview of the ministry, so the much it can do in the present situation is to engage with agencies, institutions and individuals in positions.

    “This is to provide succour to the airlines. This is already being done by the relevant team led by the minister.”

    Sirika assured Nigerians, especially stakeholders, that the Buhari administration remained stoic in its commitment to the creation and sustenance of an environment that promotes the growth of the aviation industry.

    He said the president was committed to the development of the industry where major players such as the airlines could operate in a profitable and competitive market

  • Aviation fuel: ‘We have 3 more days to fly’ – Airline operators

    Aviation fuel: ‘We have 3 more days to fly’ – Airline operators

    Airline Operators in the country on Monday said they had only three more days to fly due to the high cost of aviation fuel.

    Mr Allen Onyema, the CEO of Air Peace, who spoke on behalf of the operators, said this during a public hearing by the House of Representatives ad hoc committee investigating the scarcity of aviation fuel in Abuja.

    Onyema accused aviation fuel marketers of not speaking the truth about the actual landing cost of aviation fuel, adding that if drastic measures were not taken, the least air ticket would go for as high as N120, 000.

    “If we continue this way, the least ticket you will have is about N120,000. And the marketers have refused to tell us how much is the unit cost of their acquisition.”

    He urged the House of Reps to give operators of airlines the license to import aviation fuel, saying this would reduce unnecessary burden on the citizenry.

    “What we are asking from the government is to give us the right to import aviation fuel. What others use in insuring one plane is what we use in insuring three planes in Nigeria, so the Nigeria airline is dead on arrival,” he said.

    Rep. Ahmed Wase, the Deputy Speaker of the House of Reps, said that the committee was only after fact, as it was poised to protect the interest of Nigerians.

    “We are not willing to compromise what is in the interest of our country,” he said

    He, however, chided the marketers for speaking the language they did not understand in order to cover up some facts.

    According to him, the marketers’ analysis are not correct based on the fact at the committee’s disposal.

    He also querried why some government agencies would not be telling the truth about the scarcity and the high cost of aviation fuel, saying “we should be seen to protect the interest of Nigeria and not otherwise.”.

    He said that the committee would ensure that the right thing was done in the interest of the country, adding that the basic tenet of governance remained the welfare of the people.

    Rep. Toby Okechukwu, the Minority leader of the House, however, raised questions on what determined the marketers prices and why were they hoarding the product.

    Okechukwu said that such actions by marketers were bringing a lot of dysfunction to the country’s economy.

    “If we are saying that the landing cost of aviation fuel is N450 from Central Bank of Nigeria who approved it,” he said.

    He also accued the Nigeria National Petroleum Corporation (NNPC) Ltd. for not knowing those managing the products.

    Meanwhile, Mr Ugbugo Ukoha, the Executive Director for Distribution System for Storage and Retailing Infrastructure in the Nigeria Midstream and Downstream Regulatory Authority, said that Nigeria had excess supply of Aviation Turbine Kerosene (ATK).

    He said the country had sufficient products that could go round, adding that the scarcity and the high cost remained the marketers challenge.

    The Group Managing Director of the Nigeria National Petroleum Corporation (NNPC) Ltd, Mr Mele Kyari, said that it would consider granting licenses to operators of airline to import aviation fuel.

    Kyari also agreed that aviation fuel would now be sold at N500 per litre contrary to the current N670 per litre.

  • Airline operators allege hijack of aviation fuel, worry over safety

    Airline operators allege hijack of aviation fuel, worry over safety

    Airline operators in Nigeria have alleged hijacked of aviation fuel by supply chain of the Jet A1 fuel, thereby driving up the price through artificial scarcity.

    The operators also expressed worry over the safety of airlines in Nigeria, adding that they were disturbed in the face of continuous hike in the price of aviation fuel.

    The operators said this during a hearing by the House of Representatives ad hoc committee investigating the scarcity of aviation fuel.

    They said that operators were struggling to maintain their jets as fuel now took over 115 per cent of operation costs.

    Mr Allen Onyema, the CEO of Air Peace, said that within two weeks, price of aviation fuel moved from N190 per litre to N670 per litre.

    Onyema said the operators would have shut down operations if not for the political season and to support the current administration that had been supportive of the sector.

    He said that the operators could not survive the next 72 hours because they were indebted and risked takeover by the Asset Management Corporation of Nigeria (AMCON).

    Mr Ugbugo Ukoha, Executive Director, Distribution System for Storage and Retailing Infrastructure in the Nigeria Midstream and Downstream Regulatory Authority however, claimed that the country had excess supply.

    According to him, Nigeria has excess supply of Aviation Turbine Kerosene (ATK); the regulatory authority is not sincere on the state of things in the sector.

    He said that the country had 34 days of fuel supply, hence, the report of scarcity is false.

    Onyema, while responding to the presentation by Ukoha, said he was surprised with the claim that fuel was in abundance.

    He said that operators had been sourcing the fuel from 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, Ukoha, is saying there is sufficiency that will last for 34 days

    He urged the House to intervene to make the price of ATK sell for a minimum of N200 per litre.

    Rep. Idris Wase, the Deputy Speaker of the House of Reps who chaired the hearing, berated Ukoha, accusing him of being used to blackmail the government in a political season.

    He warned that no one would 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 was sequel to hoarding by marketers and negligence of the regulatory authorities to do their work.

    Wase also blamed the Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Babatunde Irukera, for not monitoring the activities of the ATK marketers.

    The Director-General of the Nigerian Civil Aviation Authority, Musa Nuhu, said the hike in the cost of jet fuel made the NCAA consider grounding some airlines from operating to avoid air mishaps.

    Mr Mele Kyari, Group Managing Director, Nigerian National Petroleum Corporation (NNPC) said the request by the operators to reduce the price of ATK to N200 per litre would not be possible.

    He said that the current landing price of the product was above N400 per litre, adding that unless the country wished to start paying subsidy on the product.

    The committee however, urged Ukoha to provide the committee with the list of all licenced marketers to meet with the committee on March 14.

  • Why there is airfare hike – FAAN

    Why there is airfare hike – FAAN

    The Federal Airport Authority (FAAN), has blamed the recent hike in airfare on the increased cost of aviation fuel and exchange rate.

    Mr Kunle Akinbode, the Head of Cooperate Communications, Port Harcourt International Airport, stated this on Monday in Port Harcourt.

    According to Akinbode, aviation fuel which sold for about N250 per litre, now sells for more than N400 per litre, adding that the hike also includes prices of spare parts which have drastically increased in recent times.

    “FAAN and other regulatory agencies in the aviation industry are conscious of the plight of airport users, especially in respect to increased airfare by the various airlines.

    “Currently, aviation fuel is selling for over N400 per litre, all aircraft components/parts required for operations are imported, so this has invariably affected airfare.

    On how the new rate is affecting patronage by passengers, Akinbode noted that patronage was considerably good irrespective of the high flight rate.

    “Nigerians will still fly irrespective of the cost because speed and security is a major advantage of air transportation over the road,” he said.

    One of the air passengers, who spoke to NAN, urged the Federal Government to extend its railway infrastructure development to the South-South region of the country.

    “If we had an alternative like the railway, just like other parts of the country, a lot of us would prefer to use the train,” Mr Johnson Ikor, an airline passenger said.