The Major Energies Marketers Association of Nigeria (MEMAN) has decried that spike in Jet A1 prices has made transport costs within Nigeria to have gone up by an average of 50 per cent.
It empathised that it has led to a difficult situation in the nation’s aviation industry.
These were contained in a letter to Alhaji (Dr.) Abdulmunaf Sarina, President, Airline Operators of Nigerla by MEMAN Executive Secretary and Chief Executive Officer, Mr. Clement Isong.
The letter made available to journalists on Thursday was also copied to President Bola Tinubu; Vice President Kashim Shettima; Minister of Aviation and Aerospace Development, Mr. Festus Keyamo (SAN); The Director General, Nigerian Civil Aviation Authority; and !he Director General, Department of State Services.
The letter read : “We empathise with the very difficult situation currently faced by the Nigerian aviation sector. The sharp increase in Jet A1 prices has placed significant pressure on airline operations, and we fully understand the serious implications this has on the sustainability of the aviation sector and the broader economy.The 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%.
“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, speciallsed handling procedures, and rigorous quality checks at every stage of the supply chain are non-negotiable requirements. These necessary safeguards inherently products. We want this context to be clearly understood as part of any assessment of pricing in the sector.
“That said, we wish to assure you that reducing the cost burden of petroleum product distribution is a matter of active and ongoing attention within our association. Steps to improve safety and simultaneously reduce 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.”
It added: “In light of the above, we must express our surprise at the price of N3,300 per litre stated in your letter as the price being charged to some airline operators. MEMAN members do not discuss pricing as this will be against competition law, however, the price of N3,300 is over N1,000 higher than our average market survey price of Jet A1 carried out for this exercise, after receipt of your letter.
“We would therefore strongly encourage any operators currently being charged at those levels to exercise their commercial right to seek alternative suppliers. Our market survey confirms that more competitively priced options are available, and MEMAN members remain committed to providing ATK at fair, market-reflective prices. We have also Received indications of falling costs, which should begin to reflect in market prices in the coming weeks.
“Finally, we strongly 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. This would provide greater price predictability, help stabilise cash flow, and reduce exposure to daily market swings.”
It stated that MEMAN has been actively engaged with the relevant regulatory authorities on the matter.
It added that following due consultations, the association has formally communicated several practical suggestions and to engage constructively with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other key stakeholders to find balanced and sustainable solutions.
It said that it remained committed to working collaboratively with all stakeholders, including the Airline Operators of Nigeria, to ensure the long-term stability and growth of the downstream petroleum sector while supporting critical national services such as aviation.
