Fuel marketers fault airlines on Jet A1 price
The row between the Airline Operators of Nigeria (AON) and the Major Energies Marketers Association of Nigeria (MEMAN) on the drastic increase in the price of aviation fuel assumed a new
The row between the Airline Operators of Nigeria (AON) and the Major Energies Marketers Association of Nigeria (MEMAN) on the drastic increase in the price of aviation fuel assumed a new dimension yesterday as fuel marketers offered different accounts on the regime of pricing and market realities.
Executive Secretary of MEMAN, Clement Isong pushed back against the N3,300 figure, describing it as significantly higher than the average market price.
In response to AON’s letter, the marketers claim the N3,300 quote is over N1,000 above what they are actually charging.
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MEMAN advised any airline being quoted N3,300 to “seek alternative suppliers,” asserting that more affordable options are available in the market.
They attributed the recent volatility to tensions in the Middle East and a 50 percent rise in domestic transport costs, rather than to extortion.
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He said, “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 Al 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.”
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“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 an indication 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.
Please be assured that MEMAN has been actively engaged with the relevant regulatory authorities on this matter”, Isong said.
The association also explained the rigorous process involved in distributing the commodity, adding that it is more costly than other products.
“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 while simultaneously reducing logistics, delivery, and operational costs across the downstream value chain are continually being discussed, shared, and implemented by 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,” he added.
Following consultations, MEMAN said it has formally communicated several practical suggestions and recommendations to mitigate the impact on the aviation sector and the wider economy.
