The 34.5% decline in the daily sufficiency of aviation jet fuel may constitute a worry for airline companies in the country.
Considering that there is usually more people traveling due to the traditional Christmas and New Year festivities, resulting in increased flight patronage, the current total stock level appears to be low.
The observation is according to the daily petroleum products days sufficiency (total stock level data) compiled by the Petroleum Products Pricing Regulatory Agency (PPPRA).
In line with the data available on the PPPRA website,
- The current total stock level of Aviation Turbine Kerosene (ATK), also known as aviation jet fuel or Jet-A1, stands at 89.04 million litres.
- Eleven days earlier, the total stock level was 135.83 million litres – indicating a 34.5% decline.
- Before now and since the start of the 2020, total stock level has been relatively unstable, with the recent highest total stock level of 187.40 million litres recorded on the 2nd of October 2020 – indicating about 60 days sufficiency; and the lowest 54.96 million litres was recorded on the 17th of July – about 18 days sufficiency.
- As at the time the latest report was released, 27th November 2020, the total ATK stock was land-based stock.
- Checks indicate there has been no receipt of ATK from the 19th of November, after the last receipt of 5.56 million litres on the 18th of November.
What they are saying
Speaking to Nairametrics regarding the decline, the MD/CEO of Jushad Oil and Gas Ltd, Mr. Bosun Paseda, submitted that the decline is due to the continuous increase in the exchange rate.
He said, “The exchange rate is very high and unstable. You will discover that importers do not have access to the CBN rate and have to make recourse to the parallel market. The landing cost is currently higher than the rate we sell at the airport. That’s why marketers do not want to bring the product.
“Scarcity is likely to set in, but the reason there is no scarcity yet is because people are not really flying. If it stays the same, then scarcity may set in, when travel increases.”
Responding to the question on whether the decline in stock has affected the price of the product, Mr Paseda noted that it has not really affected the price of the product as consumption is currently low.
What you should know
Nairametrics recently reported that oil markets yearned for airlines to resume operations following several months of not operating due to the Covid-19 pandemic travel restrictions.
- Aside from the loss of revenues to airline companies, the call was necessary considering that Jet fuel demand averages about 8 million barrels per day worldwide – indicating that oil companies were also not recording enough revenues.
- As a result of the pandemic, the International Energy Agency expects demand for Jet fuel and Kerosene to fall by 2.1 million bpd on average in 2020. This has, however, improved following lifting of travel restrictions in many countries.
Now that flights have resumed operations, it appears airline companies in the country may be in line to face another hurdle before the year runs out. The likelihood of facing this hurdle is highly contingent on receipt of ATK used in powering flights and increased travels. If things remain the same in terms of daily sufficiency of ATK needed to power their flights, scarcity may set in.
- Remember that the lowest ATK of 54.96 million litres – about 18 days sufficiency, recorded on the 17th of July, was during travel restrictions. The decline in that period didn’t create concerns and it picked up days later.
What this means
- With the national average daily consumption of ATK three million litres, this depicts that current total stock level of 89.04 million litres will only sustain for about 30 days, all things being equal.
- Even though it appears this stock level is good, the steady decline in the stock level as illustrated in the graph above raises immediate concerns.
- Also, one may conclude that receipt of ATK has stalled in recent days, having received only a total of 12.68 million litres in the last two weeks, since 12th November. This observation appears to denote that should the product receipt trend continue, scarcity may occur in the near future.
How air passengers can save more as Nigerian fares rise by 100% in 30 days
Recent airfare hike has created holes in the pockets of air passengers.
It is no longer news that air tickets have increased by over 100%, as reported by Nairametrics a few weeks back.
This development has created holes in the pockets of air travel patrons, especially those who chose the medium of transportation due to several cases of kidnappings and attacks witnessed on the road.
While some travellers doubt that it is possible to save on airfare, others, especially business travellers, argue that saving money at the point of purchasing the flight ticket is achievable. Here are some ways to spend less on air travel tickets.
Make findings on prices across many carriers
Fares for similar flights can vary dramatically from airline to airline. A quick search for a non-stop flight (both local and international) on online travel sites can help you uncover airlines offering cheaper ticket prices.
But where exactly should you search?
“There are several places to search for airfares online. You could search each airline’s website individually, but that could take some time. A more convenient way is to search a travel website like Travelstart.com, Orbitz.com, Travelocity.com, Kayak.com, Hipmunk.com or Dohop.com. You should also compare the prices on travel websites with those on the actual websites of each airline to confirm the prices.” Samuel Olafimihan, a travel agent, explains.
Sign up for alerts
Osagie Ehi, another travel agent, explained that to save more, air passengers should sign up for online alerts that will inform them of discount deals by airlines. According to him, the alerts often promote deeply discounted fares on a few seats in order to earn the airline some goodwill and free word-of-mouth advertising.
He said, “Most carriers allow you to sign up for these messages on their websites and customise them to your favoured airport. Many alerts are delivered by e-mail, but airlines are now using social media outlets like Facebook and Twitter to distribute them as well.
You can also receive alerts through a number of third-party websites, which will send you alerts about low prices on a variety of airlines. The sites will let you know when a great fare becomes available for your area.”
Book different flights
For passengers flying a long distance, Olafimihan had this to say:
“The trip to a particular stopover might be cheap for one airline, and the trip from that stopover to the final stop cheaper for another. If you can afford a layover of a day or two, then book the flights separately. Though you are likely to get to your destination a little later, you would have saved some thousands of naira.”
Go for a one-way ticket
This, according to Ehi, allows passengers to book another airline on the return trip if that airline is cheaper, or book at the time of the return trip at a cheaper rate than when setting out.
What you should know: Last week, Nairametrics reported that airfares across Nigeria had doubled. Ticket fares to cities like Port Harcourt, Ilorin, and northern states like Kebbi, Borno, Adamawa and Kano have increased by as much as 100% in the last one month.
What they are saying: Travel agents, in separate interviews, told Nairametrics that not only are airfares becoming more unpredictable in Nigeria due to exchange rate and other factors, the fares may also not come down anytime soon. This is why it is advised that you explore the options listed above while trying to book a ticket.
Covid-19 protocol: FAAN insists that arriving passengers can only be picked up at car parks
The directive is in accordance with laid down Covid-19 protocols which was issued by the Federal Government.
The Federal Airports Authority of Nigeria (FAAN) has insisted that arriving passengers are to walk to designated car parks to board their vehicles as no driver would be permitted to pick up arriving passengers at the front of the airport terminal.
The directive is in accordance with laid down Covid-19 protocols which was issued by the Federal Government to help contain the spread of the coronavirus disease across the country.
This disclosure is contained in a press statement issued by FAAN and signed by its General Manager, Corporate Affairs, Henrietta Yakubu, on Monday, April 12, 2021.
FAAN in its statement said that drivers are only permitted to park and wait at the car parks adding that they can only drop off the passengers in front of the terminals and are not permitted to wait for any reason.
What FAAN is saying
The statement from FAAN reads, “The Federal Airports Authority of Nigeria (FAAN) hereby advises passengers, drivers and other airport users, particularly those at the General Aviation Terminal, Lagos, to always comply with all laid down protocols on Covid-19 to ensure the safety of all airport users,” the statement read.
“No driver is permitted to pick up arriving passenger(s) at the frontage of the terminals. All drivers must park and wait inside the car parks, while arriving passengers walk down to the car parks to board their vehicles.
“For departing passengers, drivers are only allowed to drop off passengers in front of the terminals. They are not permitted to wait for any reason after dropping their passengers, it is only a ‘Drop Off’ zone.
“We will like to advise all our esteemed customers to strictly adhere to these rules, to ease facilitation and enhance the safety of all airport users.”
In case you missed it
It can be recalled that FAAN, on Friday, advised passengers and airport users to arrive at the airports early, particularly those at the Nnamdi Azikwe International Airport, in order to complete their check-in procedures in good time and avoid unpleasant experiences associated with missing their flights.
In July 2020, the Minister for Aviation, Hadi Sirika, announced that domestic passengers are expected to arrive an hour and a half before departure.
FAAN had also said that anyone, including Very Important Personalities (VIP), who refuses to comply with Covid-19 protocols will not be allowed access to airport facilities.
COVID-19 PROTOCOLS; FAAN TASKS AIRPORT USERS ON COMPLIANCE
The Federal Airports Authority of Nigeria (FAAN) hereby advises passengers, drivers and other airport users, particularly those at the General Aviation Terminal, Lagos, to always comply with all laid down..
— Federal Airports Authority of Nigeria (@FAAN_Official) April 12, 2021
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