Airlines Adamant On Ticket Discount Despite Aviation Fuel Prices Drop

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Airline companies, have started paying 25 percent less for aviation fuel they purchase effective Wednesday, August 3, 2016.

Per the new directive, a litre of aviation fuel, currently selling at about 3 dollars 14 cents, will now be sold at about 2 dollars 35 cents.

It follows the announcement by the industry regulator, the National Petroleum Authority (NPA) that, it has reduced the cost of the product by 25 percent.

But the Vice President-Africa of the International Air Transport Association, Raphael Kuuchi, has told Citi Business News, passengers of airline companies would only enjoy a rebate in air ticket fares if price adjustments are to be made on the tax composition of aviation fuel.

“If there are tax elements on top of the fuel, then those are the issues that are within control because if it is the cost of the services which is higher, then it means there is inefficiency in the delivery of fuel to the airlines and so something needs to be done to ensure efficiencies and a
reduction in that line.”

“If it is the taxes that are imposed by government, then it will be appropriate to adjust them so that the fuel price can be competitive,” he explained.

The NPA believes this will make the cost of aviation fuel in Ghana more competitive and the country with the second lowest priced aviation fuel in the West African sub-region.

A litre of the product is being sold at about 2 dollars 30 cents each in Nigeria and Benin.

A statement from the NPA on the announcement, said the NPA was hopeful that the airlines “will let the reduction reflect in airfares especially domestic airfares which has seen increment in recent times.”

President John Mahama on Monday, announced that consultations with the NPA, have concluded with about 20 percent reduction in aviation fuel.

The situation has also compelled most airline companies to lift fuel from outside the country.

But the President believes the announcement should bring relief to the various airline companies and increase air traffic to Ghana.

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