Airline chief laments high cost of aviation fuel

Osita Okonkwo, the Chief Operating Officer of United Nigeria Airlines, has stated that despite the stability in the availability of aviation fuel in the country, its cost remains very high.

According to the airline chief, the stability experienced is due to the increased supply made available to the airline industry by the Dangote refinery. However, he called for lower prices for airline operators.

He emphasised the need for a corresponding improvement in the exchange rate to help reduce costs for airline operators.

He said, “We want the price to come down; hopefully, with the exchange rate improving, it will come down. We always want lower prices.

When we started, it was 250, 300, compared to 1000, which is still high. But the most important thing is that it’s available and the price is stable, though we are asking for lower prices.

“Most fuelers are buying from Dangote now; I know their major distributor, MRS, buys exclusively from them, so I think NNPC also buys. Most people are buying from Dangote, but I don’t know how the others are supplying.”

Okonkwo noted that while there has been a slight decrease in prices recently, there has been no scarcity.

He said, “One thing about pricing is that it has remained stable; it came down slightly, but it has remained stable, and the fuel is available, so there’s no scarcity since Dangote came on board.

“The price is between 1,050 and 1,200 in Lagos, and then it varies in other locations. It depends on who is supplying.”

Recently, the Dangote refinery has been supplying aviation fuel to the airline industry, marking a significant move, especially as it comes from a privately owned refinery.