Sirika attributes high cost of Jet-A1 to Rusian-Ukraine war, high demand for crude oil, others

Captain Musa Nuhu, NCAA DG, sitting Left-, signing MoUs with Sierra Leone and Rwanda at the event on Monday

 

…as Nigeria signs MoUs with Sierra Leone, Rwanda

 

Posted by Sade Williams 

 

Aviation minister,  Hadi Sirika has attributed the high cost of Jet A1 in Nigeria to high demand for crude oil including the ongoing Russian-Ukraine crisis and low capacity to refine Jet A1 around the world.

He however said that the Federal Government and the country’s carriers would have to reach a middle ground on how to stem the continuous hike in price of aviation fuel, urging the operators to cooperate with government in resolving the crisis.

Sirika, spoke at the 7th Africa-Indian Ocean (AFI) Aviation Week currently going on in  Abuja.

At the occasion, Nigeria also signed two Memorandum of Understanding (MoUs) with Sierra Leone and Rwanda for technical support to enhance the safety and security of civil aviation in the Africa Indian-Ocean region.

The MoUs were signed by Nigeria’s Director-General, Nigeria Civil Aviation Authority, NCAA, Captain Musa Nuhu and representatives of the two countries at the opening ceremony of the 7th AFI Aviation Week in Abuja, Nigeria

Speaking on the fuel crisis, Sirika said, “There is huge demand and the population of the world is increasing. There is huge demand for these products. It is not peculiar to Nigeria. It is worse in other countries more in terms of pricing and availability. So, it is something we have to live with and I am sure they understand that”.

“If you continue to pass the buck to the passengers, you will kill the transportation business or you make the air transportation unattractive. A middle ground would have to be found and I am sure it would be found.

The Minister disclosed that the Nigeria National Petroleum Corporation (NNPC) was going to look for way to get the commodity through the oil majors or deep oil.

With that, he said, there would be less demand leading to price stability, hinting that the country was looking at ways to refine the commodity.

He further stated that the country’s to refine Jet A1 in the country because of the less quantity of the imported refined product that has discouraged from setting up refinery for it.

“When you have to bring it in from outside, there is the landing cost, the charges, taxes and that adds to the price of Jet A1.

“ It is really biting around the world. We hope the airlines do understand this because what it is sold in Nigeria is not the highest in the world and they can attest to the government of Buhari that has been very impactful on their businesses because the number of airlines has doubled; that means we are doing the right things. I think government is doing a lot for them just to mention a few in terms of support”.

 

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