Airlines Face Shutdown as Jet Fuel Price Talks Stall

A critical meeting involving the federal government, the Airlines Operators of Nigeria (AON), and aviation fuel marketers concluded on Thursday without resolving the escalating crisis over Jet A1 fuel pricing. This deadlock occurred just two days after the meeting was rescheduled.

The session, intended to facilitate open dialogue and find solutions to the current challenges, resulted in the appointment of four key individuals to report back to the government within the next 72 hours with proposed resolutions.

Following the meeting, the Minister of Aviation and Aerospace Development, Festus Keyamo, explained that airlines had been compelled to consider halting operations because the cost of purchasing and selling Jet A1 fuel had become unsustainable. He emphasized that airlines could not continue with current prices for much longer, stating they had reached their operational limits.

Keyamo indicated that the designated representatives would convene within the next 48 to 72 hours to work towards establishing fair and reasonable pricing for the fuel. He assured the public that the regulatory body would fulfill its role, noting that while the market is free, it should not lead to exploitative practices.

"We will see in the next 48 to 72 hours if there is a conspiracy at some point to punish the Nigerian people," Keyamo stated, adding that the government would announce the outcome of these deliberations.

Additionally, Keyamo revealed that President Bola Tinubu had approved a 30% discount on debts owed by airlines to aviation agencies such as FAAN, NCAA, and NAMA. This decision was communicated to the ministry on Thursday evening while the meeting was ongoing.

Representing the AON, Chairman of Air Peace, Allen Onyema, highlighted that the cost of aviation fuel in Nigeria has significantly increased since the onset of the US-Iran War. He argued that this price surge is disproportionate to the rise in international fuel prices, citing a global increase of about 70% compared to Nigeria's 250% to 70% rise.

Onyema expressed hope that the meeting with marketers, facilitated by the President and the Minister, would yield positive results. He stressed that unless a drastic solution is found within the next 48 hours, no airline will be able to operate in the coming week, not due to a lack of willingness, but because the required fuel may become unavailable at an unaffordable price.

He welcomed the President's attentiveness to the issue, describing it as encouraging and a source of hope for the aviation sector and the country.

By Kasim Sumaina