The Minister of Aviation, Joseph Kofi Adda says the cost of aviation fuel in Ghana has been cut by 20 percent to ease the cost of doing business for airline operators.
The last time the sector enjoyed a price cut was three years ago during the John Mahama regime where there was a 25 percent slash in the price of aviation fuel.
The minister reckoned the cost of aviation fuel could come down further after certain adjustments are made noting it would be prudent to have a price regime which lures airlines in Africa and the globe come to the country to refuel because of competitive pricing rather than have them relocate their operations due to unbearable cost.
Meanwhile both domestic airliners and foreign ones operating in the country have hailed the news nothing that even with the price slash; the regulatory authority stands to rake in good revenue through volumes of sale.
The drop in aviation fuel cost comes after a committee was set up to look into the price regime which made Ghana one of the highest in West Africa together with Burkina Faso.
Cost of fuel constitutes a major contributor to the operations of airliners with some saying it forms 30 percent of their total cost so a drop in fuel cost should be welcome news.
Africa World Airlines, Passion Air and Unity Air are domestic airline operators in the country. Hopefully the reduction will reflect in domestic as well as general airfares.
KLM, Brussels Airlines, Kenya Airways, Emirates, Ethiopian Airlines, Air France, Royal Air Maroc, Med-View Airline, Turkish Airlines, South African Airways, Rwand Air, TAP Air Portugal and Egypt Air are some of the foreign airline operators here.
By Michael Eli Dokosi/goldstreetbusiness.com