According to Asharami Synergy Limited, a downstream business of the Sahara Group in Nigeria, stability in the foreign exchange market will have a favourable effect on the aviation fuel market by bringing down the price of the fuel.
Foluso Sobanjo, Head of Sahara Group’s Downstream Africa, recently made this claim at the Aviation Energy Forum of the International Air Transport Association, which was held in Vienna, Austria.
The PUNCH was provided with a statement by Bethel Obioma, Head of Corporate Communications at the Sahara Group, on Monday. In it, Sobanjo discussed the growth factors for the Nigerian market and stated that the aviation fuel sector would gain from stable foreign exchange rates, sufficient refining capacity, more affordable funding sources, and the development of infrastructure.
He noted, “Achieving stability in the FX market would impact the Jet fuel market positively by reducing product cost, solving the liquidity issues facing the airlines and help with the repatriation of the investment made by foreign airlines which would spur further investments.”
In his view, suppliers must be able to obtain financing at competitive rates in order to finance investments in trucks, tank farms, and other necessary infrastructure.
“This would enhance operational capabilities and logistical efficiency, thereby supporting long-term growth and healthy competitiveness in the sector,” he stated.
In order to promote sustainable regulation, growth, and development of the industry, Sobanjo also called for collaboration among all stakeholders, including IATA, airlines, the Federal Airport Authority of Nigeria, and petroleum marketers, as well as investment in infrastructure through various Public-Private Partnerships.
Although Sobanjo acknowledged that Asharami’s remarkable achievement in the aviation fuel market could be attributed to the company’s dedication to environmental sustainability, technological innovation, and safety, he also pointed out that the company has a two-decade history of outstanding performance in the Nigerian industry.
“Asharami Synergy is the leading aviation fuel supplier in Nigeria with over 20 per cent of the market share. We have several certifications from the International Organisation for Standardisation in recognition of our commitment to excellence, quality, and safety. With current storage capacity of about 31 million litres owned and operated by Asharami across the nation, a fleet of 20 bowsers, and ongoing plans for capacity expansion, we keep innovating to deliver outstanding Jet A1 solutions,” he disclosed.
According to Sobanjo, Asharami Synergy provides solutions that are compatible with the operations of both domestic and foreign airlines in Nigeria.
“Our distinctive mark of excellence and safety make Asharami the responsible provider of choice for aviation fuel in the Nigerian market,” he said.
Speaking at the same event in Vienna, Nomnso Dike, the CEO of Asharami Synergy, stated that the firm has been a strategic partner of IATA since 2009. He also added that the company’s broad product supply chain makes products available and competitively priced in the market.
“We are constantly investing in technology to drive efficiency in our business hence the adoption of the solution that increases efficiency through digitalised tracking of our into-plane fueling operations, whilst also helping to reduce CO2 emissions.
“In addition, our dashboard tracks and analyses our customers’ consumption patterns, thereby enabling us to forecast demand accurately and ensure consistent product availability to meet all our supply obligations. This ensures our customers can rely on Asharami for responsible and seamless supply,” he stated.
According to The PUNCH, one of the reasons why plane tickets are so expensive in Nigeria is the high price of Jet A1.
The price of aviation fuel increased in February 2022 from roughly N300 per litre to roughly N1,000 per litre. Since then, the price of tickets has increased significantly.
