Jet A1 Price Dispute Intensifies as Marketers Challenge Airlines' Claims
The Major Energies Marketers Association of Nigeria (MEMAN) has strongly disputed claims by the Airline Operators of Nigeria (AON) that Jet A1 aviation fuel is selling for as high as N3,300 per liter in the domestic market. In a formal letter addressed to AON, MEMAN Executive Secretary Clement Isong stated that the quoted price is significantly above prevailing market realities, with internal market surveys showing the figure to be more than N1,000 higher than current average market rates.
Global Supply Chain Disruptions and Local Impacts
MEMAN acknowledged the severe pressure on aviation operators while attributing recent price surges to external shocks, particularly the ongoing tensions in the Middle East that have disrupted global supply chains. The association noted that these disruptions have pushed up the cost of refined petroleum products worldwide, with domestic transportation and logistics costs in Nigeria rising by approximately 50 percent, further compounding the final price of aviation fuel.
Supply constraints and elevated international prices continue to shape local market dynamics, according to MEMAN, which emphasized that the distribution of Jet A1 is inherently more expensive than other petroleum products due to strict safety and quality requirements. However, the association distanced itself from any uniform pricing structure, stressing that its members operate in a competitive market and do not engage in price-fixing activities.
Alternative Sourcing and Contractual Recommendations
The association advised airline operators purchasing fuel at significantly higher rates to exercise their commercial rights by sourcing from alternative suppliers offering more competitive pricing. Isong further urged airlines to abandon spot market purchases and instead adopt long-term contractual arrangements with fuel suppliers to ensure more stable pricing and supply security.
This dispute emerges against a backdrop of international warnings about jet fuel shortages. The International Energy Agency (IEA) has cautioned that Europe might have just six weeks of jet fuel remaining as the airline industry grapples with supply disruptions linked to Middle East conflicts. IEA head Fatih Birol warned that a blockade of the Strait of Hormuz could trigger the largest energy crisis ever experienced, with far-reaching implications for the global economy.
Nigeria's Crude Oil Revenue Sees Significant Boost
Meanwhile, Nigeria's revenue from crude oil is set to receive a major boost as its crude grades hit $113 per barrel, significantly above the international Brent benchmark of $96 per barrel. Market data as of April 16 showed Nigerian crude grades, Brass River and Qua Iboe, selling for $105.56 and $105.46 per barrel respectively, while Brent sold for $98.16 per barrel.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, speaking on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington, announced that Nigeria's crude oil production has reached 1.8 million barrels per day. Edun emphasized that rising crude production would boost the country's revenue, foreign exchange reserves, and overall fiscal situation, providing extra fiscal space to support vulnerable households.
The Federal Government had set the 2026 oil benchmark at $60 per barrel, meaning current prices well above this threshold will significantly increase national revenue. Nigeria's crude oil revenue in 2025 was estimated at roughly N55.5 trillion, driven by approximately 530.41 million barrels produced.
Broader Economic Implications and Industry Warnings
The Airports Council International Europe has warned that the ongoing crisis could disrupt peak summer travel, with harsh economic impacts for countries reliant on aviation-driven growth. In Nigeria, AON has warned that all domestic airlines might suspend operations from April 20 over the rising cost of aviation fuel, highlighting the critical nature of the current supply and pricing challenges.
The United States dollar held near its lowest level since early March against major currencies as hopes for a peace deal with Iran buoyed sentiment and encouraged traders to shed safe-haven positions. The dollar index, which measures the currency's strength against six major peers, was steady at 97.969 after declining for eight straight sessions through Wednesday.
As the global energy landscape faces unprecedented challenges, the dispute between Nigerian fuel marketers and airline operators underscores the complex interplay between international supply chains, local market dynamics, and the broader economic implications of energy security and pricing transparency.
