Soaring Aviation Fuel Prices: Keyamo To Mediate As Marketers, Domestic Airlines Clash

…Minister meets both parties, other stakeholders Wednesday

Nigeria’s aviation sector is facing mounting pressure as the country emerges as one of the most expensive markets globally for aviation fuel, with domestic airlines pushing back against what they describe as exploitative and unsustainable operating conditions.

The federal government has stepped in to avert a looming crisis following escalating tensions between the Airline Operators of Nigeria (AON) and the Major Energies Marketers Association of Nigeria (MEMAN) over the sharp rise in aviation fuel prices.  LEADERSHIP has learned that the Minister of Aviation and Aerospace Development has convened an emergency meeting for Wednesday, April 22, 2026.

Comparative data highlights the scale of the challenge. While Jet A-1 sells for between N1,800 and N3,000 per litre across Nigerian airports, peaking at N3,300 in some locations, prices in neighbouring West African countries remain significantly lower.

In Togo, the product averages between $0.90 and $1.20 per litre (approximately N1,200 to N1,600), while in Liberia it sells for about $1.00 to $1.30 (roughly N1,300 to N1,700). In the United Kingdom, prices range between $0.80 and $1.00 per litre (around N1,000 to N1,300), underscoring more efficient supply chains and stable market conditions.

The wide disparity places Nigeria among the costliest environments for aviation fuel globally, with prices in some cases two to three times higher than international averages, an imbalance that is now threatening the sustainability of airline operations.

This is as MEMAN expressed ‘surprise’ over the N3,300 per litre aviation fuel price cited by the Airline Operators of Nigeria (AON) in its recent threat to ground operations.

While MEMAN noted that anti-competition laws prevent members from engaging in collective price-fixing, the association stressed that the N3,300 figure is over N1,000 above its current average market survey for Jet A1.

Airlines under the AON umbrella have warned that the situation has reached a breaking point, citing a more than 300 per cent increase in Jet A-1 prices over a short period. According to the operators, the cost of the product has surged from about N900 per litre as of February 28 to as high as N3,300 per litre in less than two months.

In a letter dated April 14, 2026, and signed by AON President Abdulmunaf Sarina, the operators formally notified MEMAN of their intention to suspend operations nationwide from Monday, April 20, if the pricing crisis is not urgently addressed.

The letter, addressed to MEMAN’s Executive Secretary/Chief Executive Officer, Clement Isong, warned that continued operations under current conditions would be financially ruinous.

Beyond the warning, AON accused fuel marketers of exploiting domestic airlines through what it described as arbitrary and unjustified pricing practices.

The operators alleged that despite relative stability in global crude prices and exchange rate movements within the period under review, local Jet A-1 prices have continued to rise disproportionately.

The airlines further claimed that marketers have taken advantage of limited competition and supply constraints within the domestic market to impose excessive margins, leaving operators with little or no bargaining power.

According to AON, the concentration of supply among a few major marketers has created a quasi-monopolistic environment, enabling price fixing and coordinated increases across airports.

They also pointed to inconsistent pricing across locations, noting that Jet A-1 costs vary widely between airports without a clear justification in terms of logistics or distribution costs. This, the operators argued, suggests inefficiencies and possible profiteering within the supply chain.

“We are being forced to operate under conditions that are not only hostile but deliberately skewed against the survival of local airlines,” a source within AON said.

“There is no transparency in the pricing template, and the burden is being unfairly transferred to operators.”

Industry stakeholders, however, attribute the sharp increase in fuel prices to a combination of foreign exchange volatility, rising global crude oil prices, logistics bottlenecks, and persistent inefficiencies in the domestic supply chain.

These factors, they say, have significantly driven up operating costs in an industry already grappling with multiple taxation, high maintenance expenses, and currency pressures.

Fuel accounts for between 30 and 40 per cent of total airline operating costs, making any sudden spike particularly destabilising.

Analysts warn that a prolonged crisis could cripple Nigeria’s already fragile aviation ecosystem, disrupt domestic travel, and impact cargo movement, tourism, and broader economic activities.

In response to the growing tensions, the Minister of Aviation and Aerospace Development, Festus Keyamo, confirmed that the Federal Government is urgently working to broker peace between the parties.

He disclosed that a high-level stakeholders’ meeting is being convened to address the situation and explore both immediate and long-term solutions.

“I am arranging a stakeholders’ meeting next week to engage everyone,” the minister said.

Sources within the ministry indicate that the meeting will bring together key players across the aviation value chain, including airline operators, fuel marketers, regulators, and possibly representatives from the Central Bank of Nigeria and the Nigerian National Petroleum Company Limited (NNPCL).

The intervention is expected to focus on stabilising Jet A-1 prices, improving supply chain efficiency, and providing relief measures to prevent a nationwide shutdown that could further strain the country’s economy.

Meanwhile, in a direct challenge to AON’s claims, MEMAN encouraged airline operators currently facing such high rates to exercise their commercial rights by seeking alternative suppliers.

The association maintained that its internal market data confirms more competitively priced options are available, reaffirming its members’ commitment to providing Aviation Turbine Kerosene (ATK) at fair, market-reflective rates.

This clarification is coming less than 24 hours after the AON threatened to ground all domestic flight operations effective Monday, April 20, 2026. The operators’ body, in a letter addressed to President Bola Ahmed Tinubu and top aviation regulators, claimed fuel prices had spiralled from N900 in February to an “unsustainable” N3,300 this week.

MEMAN, he stated that the association has also received indications of falling costs, which should begin to reflect in market prices in the coming weeks.

Isong also encourage AON members to adopt a more sustainable pricing approach by moving away from spot pricing and entering into longer-term contractual arrangements with their suppliers.

He said the sharp increase in Jet Al prices has placed significant pressure on airline operations, adding that the association fully understands the serious implications this has on the sustainability of the aviation sector and the broader economy.

“The challenge is that the ongoing geopolitical tensions in the Middle East have severely disrupted global supply chains and significantly affected the pricing and availability of middle distillate products such as diesel and Jet A1. Transport costs within the country have therefore gone up by an average of 50 percent.

“It is also important to note that the transportation and distribution of ATK is governed by specific protocols for quality assurance and safety reasons, which are more stringent than those applicable to most other

petroleum products. Dedicated equipment, specialised handling procedures, and rigorous quality checks at every stage of the supply chain are non-negotiable requirements.

“These necessary safeguards inherently make the logistics and distribution of ATK a more cost-intensive undertaking compared to other petroleum products. We want this context to be clearly understood as part of any assessment of pricing in the sector,” Isong said.

He assured that reducing the cost burden of petroleum product distribution is a matter of active and ongoing attention within its association.

“Steps to improve safety and simultaneously reduce logistics, delivery, and operational costs across the downstream value chain are continually being discussed, shared, and implemented between MEMAN members and the MEMAN Secretariat through regular webinars, training programmes, and industry engagements.

“It is a core part of our mandate to share these best practices broadly with the downstream industry so that distribution costs are minimised to the greatest extent possible, without compromising on safety or quality standards,” the MEMAN CEO said.

He assured that it is actively engaged with the relevant regulatory authorities on the matter.

“Following due consultations, we have formally communicated several practical suggestions and recommendations aimed at mitigating the impact on the aviation sector and the wider economy.”