The Group Managing Director, Nigerian National Petroleum Company Limited (NNPCL), Mele Kolo Kyari, has said NNPCL cannot fix the prices of aviation fuel in a deregulated economy.
He stated that the only way the company could address the soaring price of aviation fuel technically called JetA1 was through the introduction of subsidy. He spoke while addressing the National Assembly in Abuja. Kyari said: “We cannot fix the prices of aviation on a deregulated commodity.
The only way we can fix the price of aviation fuel is to introduce a subsidy.” The Airline Operators of Nigeria (AON) had, last week, suspended its proposed service withdrawal, which would have commenced from Monday of the week.
The operators had, in a statement, announced that they would discontinue operations nationwide with effect from Monday May 9, 2022, until further notice.
The statement was jointly signed by President, AON, Alhaji Abdulmunaf Yunusa Sarina, Executive Director, Max Air, Alhaji Shehu Wada and Chairman, United Nigeria Airlines, Dr. Obiora Okonkwo. It was titled: “Airline operators to shut down operations amidst high cost of JETA1, sympathise with passengers.” Sarina said there had been a steady ENERGYand astronomical hike in the price of JetA1 and other operating costs.
According to him, over time, aviation fuel price (JetA1) had risen from N190 per litre to N700 currently. He decried that while aviation fuel is said to cost about 40 per cent of an airline’s operating cost globally, the present hike had shut up Nigeria’s operating cost to about 95 per cent.
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Sarina said: “In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and oil marketers with the view to bringing the cost of JetA1 down, which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000.
The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.”