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Airlines call for Warri refinery repairs over cost of aviation fuel

BusinessDay
3 Min Read

The high cost of aviation fuel in Nigeria ranging between N160 to N170 per litre which in-turn gulps as much as 40 percent of the operational cost of most airline has necessitated a new call by airline operators for the urgent revival of the Warri refinery, Atlas Cove and Mosemi pipelines.

The refinery which had been fully functional prior to the late General Sani Abacha led military regime, easily pumped aviation fuel to the Murtala Muhammed Airport (MMA), Lagos through the Atlas Cove and Mosimi pipeline from before it was shut down by the regime in January 1996.

The comatose nature of the refinery have spelt untold hardship for the airline who have been left at the messy of exploitative oil marketers who now see aviation fuel as the only deregulated market left, hence, pass their increased expenses to Aviation Turbine Fuel (ATF) in order not to incur an overall company loss.

Speaking to journalists recently in Lagos, Nogie Meggison,  chairman, AON, called on both the Federal Government and the Nigeria National Petroleum Corporation (NNPC) to seek urgent steps in reviving the pipelines, which he say must have become rusty and corroded having been abandoned for 18 years.

“We need NNPC to revive this pipeline so that airline can get cheaper and cleaner aviation fuel,” Meggison said.

Other factors for the high cost of fuel fingered by Meggison included the cumbersome chain of distribution and supply which the fuel had to pass through before getting to airline operators, listing other reasons to include; cost of importing fuel, delay at seaport which translate into high demurrage paid by oil marketers, cumbersome process of loading at the Apapa port and inefficient transportation of the product by road from the Apapa port to the Joint Users Hydrant Installation (JUHI) at the airport.

According to him, if revived the Warri refinery has the capacity to produce enough Aviation Turbine Fuel (ATF) for airlines, pointing out that pumping fuel using pipeline and hydrant is safer and cost effective compared to using tankers and fuel bowsers.

Odinaka Mbonu

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