The Chief Executive Officer of Air Peace, Allen Onyema, has disclosed that the Nigerian airlines risk going under in the next three days if the price of aviation fuel, also known as Jet A1 is not controlled.
Mr. Onyema, while appearing before the House of Representatives Committee investigating the increase in price of the fuel, said the operators now buy the fuel for N670 per litre from the N190 per litre they used to buy.
He noted that despite the increment in air tickets by the airlines, they are still running at huge losses and owing debt.
Onyema said the NNPC limited should be asked to bring down the price of the fuel to N200 per litre so that the operators can continue to operate.
Responding to the request, NNPC Limited CEO, Mele Kyari said the request will not be possible. Kyari stressed that the fuel is a deregulated product and the landing cost is N418 per litre.
The Chairman of Air Peace said they should bring it to N200 per litre.
As of today, the landing cost of ATK is N418 per litre, we have no control over that, the only way is to subsidize it,Kyari said.
Other operators who spoke at the hearing also echoed what Onyema said.
The CEO of Overland, Captain Edward Boyo, said the country risks putting planes at risk if action is not taken to regulate the price of Jet A1 fuel.
In his ruling, the Deputy Speaker, Idris Wase said the Committee will meet again on Monday to hear from the fuel marketers.
He directed the NNPC limited boss to work with all relevant authorities to crash the price of jet fuel.