Airline operators in Nigeria have contended that some marketers are hoarding aviation fuel also known as Jet A1.
According to airline operators, the marketers are causing artificial scarcity of the product in the country.
This was stated on Thursday by the operators during a hearing by the house of representatives’ ad hoc committee investigating the scarcity of aviation fuel.
They also expressed worry over the safety of airlines in the wake of aviation fuel price hikes.
They said they were struggling to maintain their jets as fuel now took a large percentage of operating costs.
Recall that Nigerian airlines informed passengers to expect possible flight disruptions due to the “prolonged scarcity of aviation fuel” and an increase in the product price.
According to NAN, Allen Onyema, chief executive officer of Air Peace, who spoke for airline operators, told the committee that within two weeks, the 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 the operators could not survive the next 72 hours because they were indebted and risked takeover by the Asset Management Corporation of Nigeria (AMCON).
Musa Nuhu, NCAA director-general, said the hike in the cost of jet fuel has caused the authority to consider stopping airlines from operating to avoid air mishaps.
“Considering the cost of air tickets now, the airline industry cannot survive. It is either we shut them down because they cannot generate enough revenue to operate safely,” Nuhu said.
“We are not even talking about cancellations and delays; we are talking about the safety of flight operations.
“It is the responsibility of the Nigerian Civil Aviation Authority and I am fully responsible for the safe operations. We hope the honourable House can help us find a solution to resolve this matter. Aviation is critical to the economy of Nigeria.”
The NCAA boss said that if the aviation sector were to crash today, many other sectors of the economy would stop operations in a matter of time.
On his part, Mele Kyari, group managing director, Nigerian National Petroleum Company Limited (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.
“I can confirm that there is enough supply. Yes, it might be in the wrong hands or the wrong places. We are going to do everything we can to address the situation,” Kyari said.
“However, regarding the request by the airline operators to bring down the price to N200, let me say that will not be possible.
“It is not possible because the landing cost of jet A1 now is N480 per litre. Except if we are going to subsidise it, the price cannot come down to N200.”
The lawmakers asked Ukoha to provide a list of all licensed marketers for a meeting with the committee on March 14.