Forex Challenge,High Cost Of Fuelling Equipment, Importation Of Product Causes Of Skyrocketing Jet-A1–Abdulmutalib
…Calls For FG’s Intervention
…Says Strict Adherence To Established Int’l, Local Regulations
As the price of Aviation Fuel also known as Jet-A1 continues to skyrocket with no sign of reduction in sight,the General Manager, Total Energies, Engr. Rabiu Abdulmutalib has attributed the high cost of the product in the country to inability of airline operators to access Foreign Exchange(FOREX),non-refining of product locally and high cost of aviation fuel handling equipment some of the causes.
He said this while presenting a paper at the 25th annual conference of the League of Airport and Aviation Correspondents(LAAC) held in Lagos recently.
Abdulmutalib said that the challenges fuel marketers are facing are numerous, adding that for example an average refueller for instance cost as much as N150 million.
Other challenges,he mentioned includes: cost intensive fuelling equipment, airport taxes, cost of importation, continuous importation and lack of foreign exchange
The General Manager stated in view of the challenges mentioned above the price of a litre of Jet-A1 would continue to rise in the country, adding a litre of Jet-A1 fluctuate between N305 and N315 depending the airport the airline is buying from.
According to you, “For you to move a product from Lagos-Kano you pay almost N23 per litre so, you can imagine what that would mean to airlines and off course the airport taxes, high cost of aviation fueling equipment like refuellers, average size refuellers almost N150m so, these are all cost intensive devices for the aviation”.
Abdulmutalib called on the Federal Government to intervene by making it easier for Jet-A1 importers /marketers to to Foreign Exchange(FOREX),stressing that there is the need for proper coordination among relevant government agencies in monitoring and enforcement of all standards along the supply chain to address these issues.
Abdulmutalib listed some of the agencies to include: the Department of Petroleum Resources(DPR) 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).
The Total Energies General Manager contended that to prevent the contamination of Jet- A1, organisations importing the product should not compromise any of the established international and local regulations on handling JET-A1 from refinery to aircraft.
He also advocated strict 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 are very important.
In his words, “There should be no compromise on any established international and local regulations on handling Jet A1 from the refinery to the aircraft”.
He suggested that there should national sensitisation and awareness on monitor filtration phase out from all aviation handling systems in Nigeria before the deadline of July 2023.