Amid the rising costs of aviation fuel in the country, Nigerian airlines have resolved to dump less-lucrative routes for more viable ones. This, they believed would make their businesses sustainable as the industry challenge lingers.
Some of the identified less-lucrative routes to be dumped include – Sokoto, Katsina, Yenogoa, Kebbi, Gombe, Yola, Maiduguri, Bauchi, Ilorin, Jos, Ibadan, Calabar, and Akure states.
Lamenting how Nigerian airlines have been struggling to maintain sustainability since the petroleum product increment started, John Ojikutu, an industry expert and the Chief Executive Officer (CEO) of the Centurion Aviation Security and Safety Consult, stated that “the high rise in aviation fuel prices did not start today nor did it start earlier than five years ago.
“It started about 12 to 15 years ago. Prices have been irregularly increased almost monthly in spite of what the government called subsidies to fuel marketers. Within a year, it has quadrupled from N200 per litre to N800 per litre.”
“Those in the NNPC, Federation Account Allocation Committee, and the CBN should explain. The NNPC should explain why four refineries are not working,” he added.
Aviation fuel prices increment
Since the Russian invasion of Ukraine early this year, there has been an increment in aviation fuel prices, which has dampened the operations of airlines in the country.
BizWatch Nigeria understands that like other petroleum products, aviation fuel, which is not produced in the country, was subjected to international price movements as a result of the invasion.
The price movements, which have affected the oil and gas industry on a global scale, were hit by a twin shock of increased post-COVID-19 pandemic demand, and the sanctions meted out on Russia for invading Ukraine violently.
At the time of filing this report, Jet A1 had hit an all-time high across Nigeria, such that the commodity sells between N822 per litre to almost N900 per litre.
