Airlines seek reduced fuel prices as stability prevails in aviation fuel market

DDM News

The Chief Operating Officer of United Nigeria Airlines, Osita Okonkwo, stated that aviation fuel remains stable and readily available.

However, he emphasized that its high cost continues to be a challenge for airlines operating in the country.

According to Diaspora digital media (DDM) Okonkwo attributed the stability in fuel supply to the increased distribution from the Dangote refinery.

He noted that despite this stability, airlines are still struggling with the financial burden of expensive fuel.

According to him, improvements in the country’s exchange rate could help lower fuel prices for airlines.

Okonkwo explained that aviation fuel prices have risen significantly in recent years, affecting airline operations.

Previously, aviation fuel cost between 250 and 300 naira per litre, but it now costs around 1,000 naira.

Despite the price increase, he acknowledged that fuel availability has improved in the aviation sector.

The stability in supply has prevented fuel shortages, which previously disrupted airline schedules and operations.

Okonkwo stressed that airlines are pushing for further reductions in fuel prices to ease operational costs.

He emphasized that stable supply is crucial, but lower prices would significantly benefit the industry.

“We want the price to come down,” he stated in an interview.

He expressed hope that an improving exchange rate would lead to further reductions in fuel costs.

He recalled that when they started, aviation fuel was far cheaper than current market prices.

“Initially, it was 250 to 300 naira per litre, compared to the current 1,000 naira,” Okonkwo explained.

He added that while fuel prices are stable, they remain a significant financial challenge for airlines.

He acknowledged that the Dangote refinery has played a key role in stabilizing fuel availability.

Many fuel suppliers now purchase their aviation fuel from Dangote, ensuring a steady supply to airlines.

This has prevented fuel scarcity, which previously created difficulties for airline operations.

Okonkwo noted that MRS, a major fuel distributor, sources its aviation fuel exclusively from Dangote.

“I believe NNPC also buys from them,” he added

He explained that most fuel distributors now rely on Dangote for their aviation fuel supply.

However, he admitted uncertainty regarding how other suppliers operate in the market.

Regarding pricing, Okonkwo confirmed that there has been a slight reduction in aviation fuel costs.

Nonetheless, he stressed that fuel prices remain high compared to previous years.

The cost of aviation fuel varies across different regions and suppliers.

“In Lagos, fuel prices range between 1,050 and 1,120 naira per litre,” Okonkwo stated.

He explained that prices depend on the supplier and the location of purchase.

Fuel pricing stability has provided some relief for airlines despite the high costs.

Okonkwo emphasized that there has been no fuel scarcity since the Dangote refinery began supplying aviation fuel.

“Fuel is available, and there is no scarcity,” he confirmed.

He reiterated that stability in the fuel market has prevented disruptions to airline schedules.

Previously, frequent fuel shortages forced airlines to cancel or delay flights.

With a stable supply, airlines can now plan their operations more effectively.

However, Okonkwo pointed out that airlines still struggle with the financial impact of high fuel prices.

Aviation fuel costs directly influence airline expenses, affecting ticket pricing and overall profitability.

When fuel prices rise, airlines face increased operational costs, reducing their profit margins.

Okonkwo highlighted the need for measures to reduce fuel costs for airlines.

He urged stakeholders to work toward ensuring more affordable fuel pricing in the sector.

The aviation industry is still recovering from the financial impact of the COVID-19 pandemic.

Okonkwo emphasized that reducing fuel prices would greatly support airline recovery efforts.

He called on the government to implement policies that promote lower fuel costs.

He noted that a favorable exchange rate could help ease the financial burden on airlines.

Okonkwo stressed that government intervention is necessary to regulate fuel prices effectively.

With the right policies, airlines could operate more efficiently and profitably.

Reducing fuel costs would also benefit passengers through lower airfare prices.

The aviation sector remains a crucial part of Nigeria’s economy.

Airlines contribute to job creation, tourism, and trade within the country.

Ensuring affordable fuel prices would help strengthen the industry’s sustainability.

Okonkwo expressed optimism that ongoing discussions could lead to favorable policy changes.

He noted that fuel pricing adjustments would benefit both airlines and consumers.

As the industry evolves, fuel pricing remains a key factor in airline profitability.

Okonkwo called for collaboration between the government, suppliers, and airlines to address pricing concerns.

Ensuring a balance between fuel availability and affordability is essential for industry growth.

With lower fuel costs, airlines can offer more competitive ticket pricing.

This would increase passenger demand and further boost the industry’s revenue.

The government must consider aviation fuel pricing as part of broader economic policies.

Fuel costs influence overall economic activity, particularly in transportation and logistics.

Reducing aviation fuel prices would have a positive ripple effect on other sectors.

Okonkwo emphasized that airlines are hopeful for better fuel pricing policies.

He reiterated that while stability is important, affordability remains a major concern.

“Stability is good, but we need lower prices,” he stated.

Airlines will continue to advocate for policies that support sustainable fuel pricing.

The aviation industry is a key driver of economic development in Nigeria.

By addressing fuel cost challenges, the sector can experience more growth.

Okonkwo concluded that airlines remain committed to offering quality services despite financial challenges.

He expressed confidence that the industry would benefit from improved fuel pricing in the future.

The discussion on fuel pricing will remain a priority for stakeholders in the aviation sector.

Addressing this challenge will ensure that airlines can operate effectively and profitably.

The industry awaits further developments regarding aviation fuel policies and pricing adjustments.

As discussions continue, airlines will monitor fuel market trends closely.

The goal remains to achieve a balance between stability and affordability in the sector.

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