N3,300/Litre: Marketers Unveil True Cost of Aviation Fuel as Airlines Announce Flight Suspension

N3,300/Litre: Marketers Unveil True Cost of Aviation Fuel as Airlines Announce Flight Suspension

  • Nigeria's aviation sector faces turmoil over soaring Jet A1 fuel prices amid a tense dispute
  • Airline operators threaten to suspend domestic flights due to unsustainable fuel cost increases
  • Both sides call for long-term solutions as the risk of widespread travel disruptions looms

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

Nigeria’s aviation sector is on edge as a fierce dispute over the price of aviation fuel threatens to disrupt domestic flight operations.

The Major Energies Marketers Association of Nigeria (MEMAN) has pushed back against claims by the Airline Operators of Nigeria (AON) that Jet A1 fuel now costs as high as ₦3,300 per litre, a figure airlines say is forcing them toward a potential shutdown.

Airlines, fuel marketers bicker over aviation fuel prices
Marketers dispute the N3,300 per litre price by airlines amid flight disruptions. Credit: Novatis
Source: Getty Images

The standoff has heightened fears of widespread travel disruption, with operators warning that surging fuel costs are becoming unsustainable.

Read also

Nigerian fuel depot owners brace for petrol price hikes as Brent crude nears $100 amid Hormuz crisis

Marketers challenge ₦3,300 per litre claim

MEMAN expressed surprise at the ₦3,300 per litre figure, describing it as significantly above prevailing market rates.

According to the association, its internal market survey shows that Jet A1 prices are currently over ₦1,000 lower than the amount cited by airline operators.

The group stressed that anti-competition laws prevent it from fixing or announcing uniform prices, but maintained that more competitive rates are available across the market.

It urged airlines facing elevated costs to explore alternative suppliers rather than generalising the highest available price.

MEMAN reaffirmed its commitment to fair and market-reflective pricing, insisting that the current narrative may not accurately represent broader market conditions.

Airlines threaten nationwide flight suspension

The clarification from marketers comes less than 24 hours after AON warned it could suspend all domestic flight operations starting Monday, April 20, 2026.

In a letter addressed to President Bola Ahmed Tinubu and aviation regulators, airline operators painted a dire picture of rapidly escalating costs, according to a report by BusinessDay.

Read also

IMF warns Nigerians of rising hardship as food, transport costs increase amid oil price surge

They claimed aviation fuel prices had jumped from around ₦900 per litre in February to ₦3,300 within weeks—an increase they described as “unsustainable” for the industry.

Airlines argue that fuel accounts for a significant portion of operational expenses, and such sharp increases could cripple their ability to maintain services.

Global pressures and local cost drivers

MEMAN acknowledged the strain facing airlines but pointed to broader global and domestic factors driving fuel costs.

Ongoing geopolitical tensions in the Middle East have disrupted global supply chains, particularly affecting middle distillates like diesel and Jet A1.

These disruptions have driven up import and logistics costs, with local transportation expenses rising by an estimated 50 per cent.

The association also highlighted the complex and highly regulated nature of aviation fuel distribution.

Unlike other petroleum products, Aviation Turbine Kerosene (ATK) requires specialised handling, dedicated equipment, and strict quality assurance protocols.

These safety requirements significantly increase the cost of storage, transportation, and delivery.

Push for long-term solutions

To ease pricing volatility, MEMAN advised airlines to move away from spot purchases and adopt longer-term supply contracts. Such arrangements, it said, could provide more predictable pricing and reduce exposure to sudden market spikes.

Read also

Petrol depot prices inch alightly up: Dangote Refinery, AP, MRS, others adjust rates

The association also revealed that it is working with regulators and industry stakeholders to identify practical solutions that could ease cost pressures across the downstream value chain.

Efforts are ongoing to improve efficiency, lower logistics costs, and maintain safety standards through industry collaborations, training programmes, and policy recommendations.

Uncertain outlook for air travel

As both sides hold firm, the risk of flight disruptions looms large. While marketers insist that more affordable fuel options exist, airlines warn that without immediate relief, operations may grind to a halt.

Airlines, fuel marketers bicker over aviation fuel prices
Nigerians face flight disruption, high fares as aviation fuel reportedly hits N3,300 per litre. Credit: Air Peace/Novatis
Source: Getty Images

For passengers and the broader economy, the outcome of this standoff could determine whether Nigeria’s aviation sector stabilises or faces another turbulent period.

Jet A1: Nigerian local flight tickets may hit N200,000

Legit.ng earlier reported that the price of Jet A1, also known as aviation fuel, has jumped sharply following rising tensions in the Middle East involving the United States, Israel, and Iran.

The conflict has pushed global crude oil prices above $100 per barrel, causing aviation fuel prices in Nigeria to climb from about N940–N980 per litre to between N1,500 and N1,600 per litre.

Legit.ng earlier reported how the latest crude oil price increase has already impacted petrol prices and transportation fares in Nigeria.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng