The Federal Government has moved to address the worsening jet fuel shortage and rising prices by urging fuel marketers to supply aviation fuel directly to airline operators and offer a 30-day credit window.
This decision followed a series of high-level meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, alongside earlier discussions led by the Minister of Aviation and Airspace Management. The engagements brought together key stakeholders from the aviation and petroleum sectors, including regulatory agencies, airline operators, and fuel marketers.
At the meetings, stakeholders called for urgent intervention to stabilise aviation fuel prices. They recommended a review of pricing components tied to international benchmarks, particularly adjustments to premiums and cost elements influencing the final price.
A new indicative pricing band was proposed based on prevailing global market conditions and domestic cost factors. Under this framework, aviation fuel is expected to sell between ₦1,760 and ₦1,988 per litre in Lagos, and between ₦1,809 and ₦2,037 per litre in Abuja. However, stakeholders warned that prices could fluctuate due to volatility in global oil markets and operational costs.
To improve efficiency, regulatory agencies were also advised to streamline airport fuel distribution by limiting airside operators to those with verified infrastructure and capacity.
The issue of outstanding debts between airlines and fuel marketers was also addressed. Authorities were tasked with facilitating discussions to resolve these obligations, while marketers were encouraged to adopt more flexible payment terms, including the proposed 30-day credit facility.
In addition, stakeholders recommended including Aviation Turbine Kerosene in the Federal Government’s naira-for-crude initiative to reduce foreign exchange pressure and help stabilise fuel costs.
Nigeria’s aviation sector continues to grapple with high and unstable jet fuel prices, which have significantly increased operating expenses for airlines. This has led to higher ticket fares and, in some cases, reduced flight operations.
The situation is further complicated by a separate dispute involving ground handling companies over unpaid debts exceeding ₦9 billion. The disagreement has raised concerns about potential disruptions to both domestic and international flights if not resolved promptly.
Industry stakeholders believe that the success of the proposed measures—particularly direct fuel supply, pricing adjustments, and financial flexibility—will be crucial in stabilising the aviation sector and ensuring uninterrupted operations.
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