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Oil marketer accuses Air Peace, Arik, others of strongarming govt into aviation fuel subsidy


The immediate past chairman of Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, has accused airline operators of trying to force the Federal Government to introduce subsidy into the aviation industry.

Oyebanji said the cries of the airline operators over rising cost of operation is a plore to make government control the price of aviation fuel, which could create similar economic problems experienced with the fuel subsidy.

Recall that the airline operators had initially announced that the companies would suspend flight operation from May 9 over rising cost of aviation fuel, known as Jet A1 or Aviation Turbine Kerosene (ATK), which rose from N190 to N700 per litre.

However, Ripples Nigeria reported that the airline companies pulled out of the decision in the final minutes, following some members decision, such as Ibom Air and Dana Air, not to go ahead with the planned suspension.

Airlines involved in the planned suspension were Air Peace, Max Air, Arik Air, Dana Air, Azman Air, United Nigeria Airlines, and Aero Contractors – foreign airlines operating in Nigeria didn’t participate despite buying Jet A1 at the same cost from oil marketers.

Read also :Oil marketers list causes of fuel scarcity, price hike, proffer solutions

In response to the airline operators initial decision to shutdown flights, Oyebanji said on Arise TV, during an interview on Sunday, that it was an attempt to strongarm the government into taking control of the Jet A1 price like that of refined crude, rather than allow the market forces determine the cost.

He questioned why the airline operators didn’t take advantage of the opportunity given to them to import the aviation fuel themselves if they are complaining of the cost they buy it from the current oil & gas importers.

Oyebanji explained that the solution to the rising cost of Jet A1 is for airline operators to increase ticket price to reflect the hike in cost of operation, and allow air passengers pay for it.

“Airline Operators are trying to pressurise government to control prices by fiat. In the alternative, let people pay the appropriate price for airline tickets. Aviation is not a social welfare business. Why are international airlines that we also sell to, not threatening to stop flights?”

The post Oil marketer accuses Air Peace, Arik, others of strongarming govt into aviation fuel subsidy appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.


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44 CommentsDrop a Comment
  1. Ricob23

    - May 12, 2022 at 4:33 pm

    I love what aviation sector are doing, the FG can treat everyone like ASUU.

    Reply
  2. HOGARIZONA

    - May 10, 2022 at 7:24 pm

    I think he is right,govt control may also create some problems afterwards
    It is better for the forces of Demand and supply to interact to determine

    Reply
  3. Flexy skido

    - May 10, 2022 at 4:15 pm

    checked

    Reply
  4. Babatunde samson

    - May 10, 2022 at 8:32 am

    Ok

    Reply
  5. Olagunju Funmilayo Grace

    - May 10, 2022 at 7:07 am

    Ok

    Reply
  6. Mubaraklag

    - May 10, 2022 at 5:01 am

    Seen read

    Reply
  7. afeezhamzat

    - May 10, 2022 at 2:36 am

    Another level🚼🛃

    Reply
  8. precioustochy

    - May 9, 2022 at 9:43 pm

    Market

    Reply
  9. Adebayo26

    - May 9, 2022 at 9:12 pm

    Why are u accusing them

    Reply
  10. Nobledonwiss

    - May 9, 2022 at 7:57 pm

    Wow

    Reply
  11. Dube

    - May 9, 2022 at 7:14 pm

    Wahala bi like

    Reply
  12. Joseph Ade

    - May 9, 2022 at 6:41 pm

    God Will help us

    Reply
  13. Teedee

    - May 9, 2022 at 5:15 pm

    Na was ooo

    Reply
  14. Isrealchuks50

    - May 9, 2022 at 4:32 pm

    Ok

    Reply
  15. Emmyshem

    - May 9, 2022 at 3:19 pm

    Correct

    Reply

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