Friday , 7 October 2022

AFMAN charges FG to desist from interfering in Jet A1 pricing

⦁ Calls on NCAA, NMDPRA to harmonize oversight of product

AG. Secretary Aviation Fuel Market Association of Nigeria (AFMAN), Engr. John Adewole Abegunde has argued that Jet fuel is fully deregulated, calling on government to hands off from all commercial related issues with regards the product.

This is just as he has listed product availability, product price often not being competitive, logistics challenges, inequality in standard operating practices as some factors militating against availability and pricing of Jet A1 otherwise called aviation fuel.

Adewole made his submissions at the FAAN National Aviation Conference with the theme – “Advancing the Frontiers of Possibilities for Safe, Secure and Profitable Air Transport while presenting a paper on aviation fuelling business for AFMAN.

According to him, The Federal Airports Authority of Nigeria (FAAN), Nigeria Civil Aviation Authority (NCAA) and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should be more concerned about the stringency of the Aviation Fueling requirement while calling on both NCAA / NMDPRA to harmonize oversight responsibilities to ensure no quality compromise in this area of business.

He charged FAAN to watch out for portfolio and unlicensed suppliers to discourage racketeering and black-market business of Aviation fuel and all discouraged Throughput while encouraging joint venture agreements.

He also advocated that FAAN reviews land lease arrangement and multiple charges as the volumes are not looking good for the initial business projection.

On the challenges, he said the biggest costs for airlines include labor, equipment, and fuel stressing that labor and equipment costs are largely fixed in the short term, while fuel costs can swing wildly
based on the price of oil.

He stated that jet fuel costs account for about 10% to 15% of operating expenses and requires high quality of product and services of handling .

Adewole stressed that organization’s mandates which include supply good quality dry Aviation fuel that meets up global standard requirement, ensuring satisfaction in service delivery and stringent Quality Control Mechanism as well as offering product and services at competitive price which guarantees product availability all year round may be hindered by the factors above.

He however mentioned some successes which include capacity to sustain the industry supply beyond market demand, representation in all airports of Nigeria to aid seamless operation of the airliners, Industry employment growth and opportunities and better synergy between Aviation Fuel Marketing Company and International airline.

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