Open aviation fuel supply to more players to reduce airfares – Akim Swedru MP to gov't

Member of Parliament for Akim Swedru, Kennedy Nyarko Osei, has called on the government to open up the supply of aviation fuel to more companies as part of efforts to reduce airfares in Ghana.

He said the current arrangement, which he described as a duopoly, limits competition and contributes to the high cost of air travel.

His comments come after he previously raised concerns over the sharp increase in airfares on the Accra-Kumasi route, with return tickets now costing between GH¢4,000 and GH¢5,000 compared with about GH¢1,600 to GH¢2,000 in 2024.

“Government should open up the supply of the aviation fuel from the current duopoly to the other players in the industry and I think the cost of air fares will drop significantly,” Kennedy Nyarko Osei wrote in a social media post on Thursday, September 10.

According to the MP, aviation fuel is one of the major components contributing to the high cost of airfares, making competition in its supply critical to reducing operational costs for airlines.

He said companies such as Star Oil and GOIL should be allowed to enter the aviation fuel market alongside existing suppliers.

“Currently only two companies are allowed to supply all aircrafts and planes that lands on our airports. I wish the authorities could allow Star Oil, Goil and the others in to bring competition in so that airlines can have alternative choices based on price differentials,” he said.

The MP had earlier questioned why airfares had increased significantly despite lower inflation and an improved exchange rate.

Nyarko Osei, who is also the Ranking Member of Parliament’s Roads and Transport Committee, stressed that reducing the cost of aviation fuel through increased competition could help address the rising cost of domestic air travel.