FG Moves to Resolve Jet A1 Price Crisis as Airlines Warn of Possible Shutdown

The Federal Government has opened discussions with oil marketers and airline operators over the soaring cost of aviation fuel (Jet A1), following warnings from domestic airlines that operations could be disrupted within days.

The Airline Operators of Nigeria (AON) raised alarm over what it described as a sharp and unsustainable increase in fuel prices, cautioning that airlines may be forced to either suspend flights or raise ticket fares within 48 hours to one week if no solution is found.

In response, the government announced plans to set up an ad-hoc committee involving oil marketers, AON, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other key stakeholders to address the issue.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this after a closed-door meeting in Abuja between airline operators and fuel marketers, which lasted over three hours but ended without a final agreement.

During the meeting, airline operators questioned why Jet A1, reportedly sourced at about N1,879 per litre, is being sold to them at around N3,210 per litre.

Keyamo acknowledged the pressure on airlines, noting that current fuel costs are no longer sustainable for operators.

“We had honest discussions, and both sides outlined their challenges. Airlines are already stretched to the limit and cannot continue under these conditions,” he said.

He explained that representatives from all parties would be appointed to work within the next 48 to 72 hours to develop a fair pricing structure.

While emphasizing that the aviation sector operates in a deregulated market, the minister warned against exploitation.

“A free market should not be an excuse for excessive pricing. We will investigate any possible distortions or profiteering and take necessary action,” he added.

Airline representatives noted that the rise in fuel prices in Nigeria is far higher than global trends, linking part of the increase to international factors such as geopolitical tensions involving the United States and Iran.

They stressed that if the situation continues, airlines may have no option but to halt operations due to the high cost of fuel.

“No airline can sustain operations beyond a week under these conditions. The cost of fuel is overwhelming,” the operators said, adding that any increase in ticket prices would be unavoidable.

Despite the challenges, the airlines expressed hope that government intervention would bring relief, noting ongoing engagement by the Presidency.

Also speaking, NMDPRA representative Engr. Seidu Muhammed assured that the agency would review pricing mechanisms and engage marketers to ensure fairness while keeping the market viable for both suppliers and airlines.

He described the situation as critical and said efforts are underway to prevent a shutdown of airline services.

Meanwhile, the Federal Government announced a 30 percent reduction on outstanding debts owed by airlines to aviation agencies such as FAAN, NCAA, and NAMA. The minister clarified that the move is a concession to ease financial pressure on operators, not a subsidy.