Dhaka Bureau: The country’s aviation sector is facing losses due to Corona. They are struggling to bear this loss. On top of that, the situation of the sector has become fragile due to increasing the price of gas fuel.
In such a situation, the private airline owners appealed to the Minister of State for Power, Energy and Mineral Resources Nasrul Hamid to demand proper adjustment of jet fuel prices.
Aviation Operators Association Bangladesh (AOAB) sent a letter to the Ministry of Power, Energy and Mineral Resources on Sunday (November 6).
On this day, AOAB Secretary General and NovoAir Limited Managing Director M Mofizur Rahman and AOAB Vice President and US-Bangla Airlines Managing Director Abdullah Al Mamun wrote this letter.
According to a part of the letter, 40-46 percent of airlines’ operating expenses depend on fuel consumption. However, due to overpriced jet fuel in Bangladesh, the aviation sector is in crisis of existence. The aviation sector is on the brink of collapse during the long corona crisis. The skyrocketing oil prices as a result of the Ukraine war has hit the sector hard. As a result, the bankruptcy of the airlines is only a matter of time.
It noted that Bangladesh often has to purchase jet fuel, especially for domestic flights, at a price 30-40 percent higher than the international market price. Potential airlines such as GMG, United and Regent went bankrupt as a result. As Padma Oil Company has sole authority to sell jet fuel, airlines are denied the right to purchase jet fuel at competitive prices.
On the other hand, the same fuel for domestic flights costs 15-25 percent more than the fuel for international flights. Most recently the fuel price for domestic flights has been increased by 5 taka to 130 taka. On the other hand, the price of fuel for international flights has been reduced from 9 cents (about ten rupees) to 1 dollar, which is unprecedented.
AOB has given some recommendations to the Minister of State in the current situation. These include, allowing domestic private sector airlines and helicopter operators to purchase fuel directly from Pertex Petroleum, allowing import of jet fuel from abroad at competitive prices if necessary, harmonizing domestic fuel prices with international flight fuel prices.
AOB’s letter has been formally accepted by the ministry.
