…denies role in price hike, urges operators to ditch spot market for long-term Jet A1 contracts
… as AON warns of April 20 shutdown over 300% aviation fuel hike
Oredola Adeola
The Major Energy Marketers Association of Nigeria (MEMAN) has denied claims that its members are responsible for the recent sharp increase in the price of aviation fuel, Jet A1, stating that the widely quoted N3,300 per litre is about N1,000 higher than the average market price offered by its members.
The association described the N3,300 per litre price reportedly cited by the Airline Operators of Nigeria (AON) as inaccurate and not reflective of prevailing rates among its members.
The clarification was contained in a letter addressed by Clement Isong, MEMAN’s Executive Secretary/CEO, to AON President, Abdulmunaf Sarina, in response to the association’s concerns over rising aviation turbine kerosene (Jet A1) costs on Thursday.
MEMAN expressed surprise at the N3,300 per litre claim, emphasizing that its members do not engage in collective pricing, as such practices would violate competition laws.
It challenged airline operators being charged at that rate to explore alternative suppliers, noting that more competitive pricing options exist in the market.
The association also indicated that there are early signs of easing costs, which are expected to reflect in market prices in the coming weeks.
According to MEMAN, the recent price pressures are largely driven by global factors, particularly ongoing geopolitical tensions in the Middle East, which have disrupted supply chains and significantly impacted the pricing and availability of middle distillates such as diesel and Jet A1.
To manage volatility, MEMAN advised AON members to move away from spot purchasing and instead adopt longer-term contractual arrangements with Jet A1 suppliers.
It noted that such agreements would provide greater price predictability and reduce exposure to daily market fluctuations.
On pricing dynamics, MEMAN explained that the transportation and distribution of aviation turbine kerosene are subject to stricter safety and quality assurance protocols than most other petroleum products.
These include the use of dedicated equipment, specialised handling procedures, and rigorous quality checks throughout the supply chain.
“These safeguards, while essential, make the logistics and distribution of aviation fuel more cost-intensive compared to other petroleum products,” the association noted.
MEMAN added that it is currently engaging with regulatory authorities to present practical recommendations aimed at mitigating the impact of rising fuel costs on the aviation sector and the broader economy.
Advisors Reports gathered that, in a letter addressed to stakeholders, the Airline Operators warned that all domestic airlines may suspend operations from April 20 due to the rising cost of Jet A1.
The group stated that the price of Jet A1 surged from N900 per litre as of February 28 to N3,300 per litre—representing an increase of over 300 percent.
