How Nigeria’s Airlines Can Tackle Fuel Price Hikes Challenge, By Abhulimen
The Regional Manager, Lagos & West Africa, Ibom Air Limited, Mr. Martin Abhulimen has called on aviation fuel marketers in Nigeria to help the local airlines by championing their collaborative negotiations of jet fuel prices.
Abhulimen was speaking in a panel discussion on The Aviation Fuel Business In Nigeria-Reality Checks And Strategic Reforms In The Aviation Fuel Ecosystem. The discussion was held during the CITA Energies Colloquium organized by League of Airport & Aviation Correspondents (LAAC) in Lagos.
He noted that jet fuel price hike that occurred between 2023 and 2024 significantly affected airline business and that impact of the occurrence could not be passed on to air travelers. He said fuel hedging would have been an option as is done in other climes but that because of volatility of the environment, hedging does not work in Nigeria.
He therefore recommended collaboration of airlines in their negotiation with jet fuel marketers so as to get more favourable price bargain.
He noted that infrastructure had posed a bigger challenge to airlines at secondary airports in Nigeria. He also stated that CITA Energies and Octavus Petroleum have been the two companies fuelling Ibom Air aircraft within the last six years.
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