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Business News of Thursday, 12 August 2021

Source: tribuneonlineng.com

'Why price of aviation fuel is high' - Abdulmutalib

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Continuous importation of aviation fuel otherwise known as Jet A1 coupled with the inability of airline operators to have easy access to foreign exchange and airport taxes among others have been attributed to the expensive price of the product in Nigeria.

Making the assertion during his presentation at an aviation seminar in Lagos,  the General Manager, TotalEnergies Nigeria, Mr Abdulmutalib declared that unless the identified challenges were resolved that the prices of the products would continue to increase in the country.

Presently, a litre of aviation fuel in the domestic scene attracts between N305 and N315 per litre, depending on the airport an airline is buying from.

The inability of local refineries according to Abdulmutalib to refine the product locally, high investment in logistics and high cost of aviation fuel handling equipment like refuellers, hydrant dispenser/servicers and filtration systems had also contributed to the sordid situation in the local market.

To resolve the situation, Abdulmutalib made case for proper coordination among relevant government agencies in monitoring and enforcement of all standards along the supply chain.

Some of the agencies he mentioned included: the Department of Petroleum Resources, the Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), Standards Organisation of Nigeria (SON) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), amongst others.

To avoid contamination of the product, Abdulmutalib suggested that organisations should not compromise any of the established international and local regulations on handling JET A1 from refinery to aircraft, adherence to international specification checklist for aviation fuel recognised by major aviation fuel suppliers in the world and checking competencies and capacities of laboratories contracted for testing parameters of the product in the country.

He however called for government intervention for easy access to forex especially aviation fuel importers and national sensitisation and awareness on monitor filtration phase out from all aviation handling systems in Nigeria before the deadline of July 2023.