Market News

By Chinelo Obogo 
 
Barring any meaningful intervention, domestic carriers on the platform of Airlines Operators of Nigeria (AON) have threatened to shut down operations on Monday, April 20  over a 300 percent increase in aviation fuel, accusing marketers of exploitattion.
 
Daily Sun exclusively learnt that the planned withdrawal of services was contained in a letter dated April 14, 2026 from the AON President, Abdulmunaf Sarina.  He revealed that the price of aviation fuel has increased from N900 per litre on February 28 to N3,300 per litre in less than two months and that while crude oil prices have increased by about 30 percent internationally, saying that the spike in jet A1 costs by fuel marketers in Nigeria has been disproportionate and indicative of market exploitation rather than genuine supply dynamics.
 
In the letter, which was addressed to the Executive Secretary and Chief Executive Officer of the Major Energies Marketers Association of Nigeria, Clement Isong, the AON said this was their final word and that if the cost of fuel is not reversed, flight operations will be shut down. The letter was  copied to President Bola Tinubu, Vice President Kashim Shettima, Minister of Aviation and Aerospace Development Festus Keyamo, Director General of the Nigerian Civil Aviation Authority (NCAA) Capt. Chris Najomo, and the Director General of the Department of State Services (DSS).
 
“The actions of fuel marketers are effectively decimating the aviation industry and putting the country’s economy, safety, and security at risk as airlines are gradually being forced to suspend operations. For the avoidance of doubt, this arbitrary increase has already seriously impacted a particular airline and forced it to ground all its operations since March 13, 2026. This is an inevitable consequence for all other airlines if the situation does not change immediately.
“The airlines are now facing existential threats with grave attendant consequences to the overall wellbeing of the nation.  If we price our tickets to reflect the current price of aviation fuel, we will be flying empty planes. If the airlines go out of business, banks will take a hit, millions of people will lose their means of livelihood, and insecurity will be on the rise. We therefore urge you to promptly prevail on marketers to proportionately adjust jet fuel prices in line with the international market rate as airlines can no longer afford to purchase the product at the current exorbitant rates.
“Therefore, we hereby give notice that if the current trend persists, all the airlines in Nigeria will be forced to suspend operations with effect from Monday April 20, 2026. This is our final plea.”
 
 
The association had raised the alarm as far back as March 30, 2026, in an earlier letter to the marketers’ association, when fuel had increased to N2,557 per litre, demanding a reversal within 48 hours. 
The March 30th letter read; “In recent weeks, we have observed with great concern the astronomical rise in the cost of Aviation Fuel (Jet A1) from an initial cost of N900/Litre as at February 28, 2026 to N2,557/Litre as at today; which is approximately a 200% increase.
“This astronomical rise in the cost of JetA1 among your members far outstrips the globally accepted norm of pricing fuel products proportionately with the level of rise in crude oil prices.
What we have seen, however, is a systematic and unilateral increase in the price of aviation fuel over and above globally accepted standards amounting to price volatility levels far higher than most global markets. This is totally unacceptable as it appears oil marketers have cashed in on the unfortunate situation of the war in the Middle East to astronomically increase the cost of the product.
Aviation fuel accounts for about 40% of airlines operational cost. Increasing the cost of JetA1 significantly above global thresholds poses a serious threat to the survival of airlines and puts the aviation Industry and indeed the nation at risk of total collapse.
“We therefore call on you to use the instrument of your exalted office to urgently bring down this artificial and exorbitant cost of Aviation Fuel within 48 hours otherwise airlines will be forced to take other measures to ensure their survival and protect the flying public from unnecessary exploitation.”