Nigeria is passing through hard time in the aviation sector as Ghana, the reliable source of aviation fuel, is drying up.
Ghana and Libreville served as succour to airlines operating in Nigeria in acquisition of aviation fuel, otherwise known as Jet A1.
But a reliable source has it that the product is said to be running out of stock in Ghana, making it difficult for airlines to get the product and to worsened situation of airlines.
Aviation fuel scarcity has become a perennial problem prompting the carriers to source the commodity in Accra, which is cheaper to what is obtained in Nigeria.
Before now, Ghana was said to have the highest cost of fuel across the sub-region. Worried by the hardship faced by the carriers, Ghana’s National Petroleum Authority (NPA) took a decision to reduce the cost of aviation fuel by 20 percent. Aside reduction in price, the availability of the commodity made it a destination for many carriers in search of fuel.
The Regional Manager, North, West and Central Africa for South African Airways, Ohis Ehimiaghe at an interactive session with the media, disclosed that despite the challenges posed by difficult operating environment in the country, the airline would continue to tap into the burgeoning Nigeria’s aviation market.
The airline chief lamented that for long, airlines had been battling scarcity of Jet A1, noting that unavailability of the commodity for several months has done incalculable damage to their operations.
According to him, “There is no Jet A1 in Nigeria. The priority is not on aviation fuel but on Premium Motor Spirit (PMS). We get it at a premium here, but unfortunately, Ghana is running dry of the commodity. The high cost of fuel adds to cost of doing business.”
“We are fortunate that South Africa Airways have huge operations in Ghana. Most times, we fly to Libreville to get fuel”, he added.
He said his firm has reviewed its contract with its fuel suppliers in Nigeria hinting it was the best thing to do under the prevailing situation.
“We have contracts with all our fuel suppliers throughout the year in Nigeria. The contract is supposed to run for two years but because of the situation at hand, we allow it to run for one year. This helps us to restrategise in order not to be caught unawares.”
Country Manager for one of the European airlines who pleaded anonymity confirmed the running out of stock of Jet A1 in Accra.
The source said the carrier had on Tuesday requested for 35, 000 litres of Jet A1 but was told they could only sell 25, 000 litres to the airline, adding that the situation is becoming dire for operators.
Aviation fuel is central to the operations of an airline, as it constitutes between 35-40 per cent of an airline’s cost. The price of the commodity – laden with taxes – in the West African sub-region, is the highest in Africa.
The skyrocketing price of JETA1 in Nigeria has added more to the pains of airlines, which use 30 per cent of their revenues for fuelling aircraft.
The high cost of jet fuel in Africa compared to other regions due to distribution inefficiencies and infrastructure constraints, has held back the development of airlines and fare reduction.
The Federal Government had recently assured that the problem associated with scarcity of aviation fuel would soon be a thing of the past when government finalises work on Kaduna and Port-Harcourt refineries that would be dedicated solely to the refining of aviation fuel.
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