*The Airline Operators of Nigeria has complained that the local operators are struggling to maintain their jets, alleging aviation fuel alone is now taking over 115 percent of operation costs in the West African country

Isola Moses | 绿帽献妻

Members of the Airline Operators of Nigeria (AON) have alleged hijacked of aviation fuel by supply chain of the Jet A1 fuel, thereby driving up the product price through artificial scarcity.

绿帽献妻 learnt the operators, who also expressed worry over the safety of airlines in the West African country, noted 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 in the National Assembly (NASS), Abuja, FCT, investigating the scarcity of aviation fuel in Nigeria in recent times.

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

Mr. Allen Onyema, Chief Executive Officer (CEO) of Air Peace Airlines, reportedly said that within two weeks, price of aviation fuel moved from N190 per litre to N670 per litre.

The Air Peace CEO stated that 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,聽 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.

鈥淭o 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

The Association urged the House of Representatives 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,聽 accusing him of being used to blackmail the government in a political season.

The Federal lawmaker, however, warned that no one would blackmail the Federal Government of Nigeria.

Wase stated: 鈥淎s a politician, I want to tell you that I am concerned, we are moving into an election period, nobody should blackmail our government.鈥�

He noted that the surge in price was sequel to hoarding by marketers and negligence of the regulatory authorities to do their work.

Wase as well blamed Mr. Babatunde Irukera, Executive Vice-Chairman and Chief Executive of Officer (EVC/CEO) of the Federal Competition and Consumer Protection Commission (FCCPC), for allegedly not monitoring the activities of the ATK marketers.

Musa Nuhu, Director-General of the Nigerian Civil Aviation Authority (NCAA) also said that the relative increase in the cost of jet fuel had made the NCAA to consider grounding some indigenous airlines from operating so as to avoid air mishaps.

Malam Mele Kyari, Group Managing Director and Chief Executive Officer (GMD/CEO), Nigerian National Petroleum Company (NNPC) Limited 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 licensed marketers to meet with the committee on March 14.

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