{"id":186241,"date":"2022-05-08T18:56:45","date_gmt":"2022-05-08T17:56:45","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=186241"},"modified":"2022-05-08T18:58:05","modified_gmt":"2022-05-08T17:58:05","slug":"aviation-fuel-review-failed-system-to-address-price-hike-hayatu-deen-tells-fg","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/05\/08\/aviation-fuel-review-failed-system-to-address-price-hike-hayatu-deen-tells-fg\/","title":{"rendered":"Aviation fuel: Review failed system to address price hike, Hayatu-Deen tells FG"},"content":{"rendered":"<p>The Hayatu-Deen presidential campaign organisation has called on the federal government to review the country&#8217;s subsidy system as part of efforts to address the hike in aviation fuel price.<\/p>\n<p class=\"caps\">Mohammed Hayatu-Deen is a former managing director of the defunct FDB International Bank seeking to contest the presidency on the platform of the Peoples Democratic Party <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/05\/08\/2023-court-stops-pdp-inec-from-conducting-fresh-congress-in-ebonyi-state\/\">(PDP)<\/a>.<\/p>\n<p>Airlines under the aegis of the Airline Operators of Nigeria (AON) on Friday announced plans to shut down flight operations over the high cost of aviation fuel, also known as Jet A1.<\/p>\n<p>Director General of the organisation, Isa Galaudu via a statement issued on Sunday said\u00a0urgent interventions are needed to address the consequences of the planned shutdown of flight operations.<\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cThe economy is fast approaching failure because of neglect and living in denial of policy makers at a time when industry-wide passenger revenue growth is increasing due to the risks and hazards of rail and road travel. As a consequence of this, airlines should be making more money and reinvesting in seat capacity,\u201d the statement reads.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cBut this is not the case because of pricing distortions and the consequences of a dysfunctional subsidy regime. It is not rocket science to know that jet fuel represents 40% of the direct operating costs of airlines. Therefore a\u00a0250% increase in the price of this input has completely eroded the thin margins of airline operators.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cThe Hayatu-Deen Presidential Campaign Organisation hereby advises the Government as a matter of urgency to embark on a two-pronged approach to mitigate the cataclysmic and systemic risk this development poses to an already fragile economy afflicted by enormous power shortages.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cFirst is the immediate need for a massive increase in supply by an import intervention to\u00a0push down prices and stabilize the market. The other being a more fundamental and strategic move\u00a0to address\u00a0 the structural imbalance\u00a0of the industry. This will entail fast tracking the revamp of the moribund refineries and\u00a0accelerating the commissioning of the private refining capacity.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cThese together with an efficient review of the failed subsidy system will bring down\u00a0 prices whilst simultaneously increasing output of refined products including\u00a0jet fuel, diesel and PMS thus bringing the industry into full and dynamic equilibrium.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cThe transportation and energy sectors are very critical to productivity, output\u00a0and employment because of their strong linkages.<\/span><\/p>\n<p class=\"p2\"><span class=\"s1\">\u201cNigerians are already feeling the weight of excruciating economic and social problems, and they do not deserve to be placed under additional unbearable stress.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Hayatu-Deen presidential campaign organisation has called on the federal government to review the country&#8217;s subsidy system as part of efforts to address the hike in aviation fuel price. Mohammed Hayatu-Deen is a former managing director of the defunct FDB International Bank seeking to contest the presidency on the platform of the Peoples Democratic Party [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":186244,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[3],"tags":[37190,37189,37188,922],"class_list":["post-186241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local","tag-airline-operators-of-nigeria-aon","tag-defunct-fdb-international-bank","tag-hayatu-deen-presidential-campaign-organisation","tag-peoples-democratic-party"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - 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