Airlines threaten shutdown, marketers say fuel prices overstated

By: Amarachi Okonkwo

The Major Energies Marketers Association of Nigeria (MEMAN) has pushed back against claims that aviation fuel is selling for as high as N3,300 per litre, urging airline operators to explore alternative suppliers while attributing recent price pressures to global supply disruptions and rising logistics costs.

The position comes amid escalating tensions between fuel marketers and the Airline Operators of Nigeria (AON), which had earlier warned that domestic carriers could suspend nationwide operations from April 20 if the soaring cost of Jet A1 is not urgently addressed.

In a letter dated April 16, 2026, MEMAN’s Executive Secretary, Clement Isong, responded to concerns raised by AON President, Abdulmunaf Sarina, acknowledging the severe strain high fuel costs have placed on airline operations.

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“We empathise with the very difficult situation currently faced by the Nigerian aviation sector,” Isong said. “The sharp increase in Jet A1 prices has placed significant pressure on airline operations, with serious implications for the sustainability of the sector and the broader economy.”

MEMAN attributed the spike in aviation turbine kerosene prices to global market dynamics, particularly supply chain disruptions linked to geopolitical tensions in the Middle East, which have impacted the availability and pricing of refined petroleum products.

According to the association, the ripple effects have driven up domestic transport and distribution costs by an average of 50 per cent.

“The ongoing geopolitical tensions in the Middle East have severely disrupted global supply chains and significantly affected the pricing and availability of middle distillates such as diesel and Jet A1,” the association stated.

It also highlighted the inherently higher cost structure of aviation fuel distribution, noting that stricter safety, quality assurance, and handling protocols require specialised equipment and processes, making ATK logistics more expensive than other petroleum products.

Despite acknowledging upward pressure on prices, MEMAN expressed surprise at the N3,300 per litre figure cited by airline operators, describing it as significantly above prevailing market levels.

While declining to disclose specific pricing due to competition laws, the association said its internal market survey showed that the quoted figure exceeded the average price by more than N1,000 per litre.

“In light of the above, we must express our surprise at the price of N3,300 per litre stated in your letter,” MEMAN said, adding that more competitively priced supply options exist within the market.

The association advised airlines currently paying such rates to exercise their commercial rights by sourcing from alternative suppliers offering better pricing.

Beyond immediate pricing concerns, MEMAN urged airline operators to adopt more sustainable procurement strategies by moving away from spot market purchases to longer-term supply agreements.

It argued that such arrangements would enhance price predictability, stabilise cash flows, and reduce exposure to daily market volatility.

“We strongly encourage AON members to adopt a more sustainable pricing approach by entering into longer-term contractual arrangements with their suppliers,” the association stated.

MEMAN also disclosed that it has engaged regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), submitting recommendations aimed at easing cost pressures across the aviation value chain.

The dispute underscores growing stress within Nigeria’s aviation sector, where fuel costs accounting for a significant portion of airline operating expenses continue to surge.

Airline operators have warned that sustained increases could lead to higher ticket prices or service disruptions, raising broader concerns about connectivity and economic activity.

However, MEMAN maintained that easing global pressures and ongoing stakeholder engagements could soon moderate prices.

“We have received indications of falling costs, which should begin to reflect in market prices in the coming weeks,” the association said, reiterating its commitment to ensuring stable supply and fair, market-reflective pricing.

The unfolding situation highlights the delicate balance between global energy market forces and domestic industry sustainability, as both fuel marketers and airline operators seek workable solutions to avert disruptions in Nigeria’s aviation sector.