Oil marketers, airlines, regulators to resolve Jet A1 price crisis in 72 hours

Briefing journalists after the meeting, Keyamo said: "Mr. President said we should submit our request today regarding the discounts to be given to the airlines from the debts they owe to the aviation agencies.

"As of yesterday, we didn't know the number because Mr. President wanted to consider it. But this evening, Mr. President just communicated to us, through the Chief of Staff, whilst we were at the meeting, that he is granting a clear 30 percent discount to all the airlines".

On the outcome of the meeting on the cost of Jet A1, Keyamo said: "The regulator at the end of the day decided that we should have focal persons from all sides. The airlines cannot continue for the next seven days without raising prices, so let's be clear with the public: they will tell you they have been stretched to the limit.

"So, we are looking at the next 48 to 72 hours for the focal persons on the side of the marketers, the regulators, the airlines, and the governments to all meet and see whether we can get very fair and reasonable pricing for the product.

"The regulator will do its job in that regard, though it's a free market, it is not a license to go haywire. So whether there's a collusion at some point, whether there's a conspiracy at some point to punish the Nigerian people, we will see in the next 48 to 72 hours."

The Representative of the AON, Allen Onyema, said local airlines may be forced to suspend flight operations in the next seven days if the issue of the hike in the cost of Jet A1 is not addressed.

He said, "Since the advent of the U.S.-Iran war, there has been a tremendous spike in the cost of aviation fuel in Nigeria, which we in AON feel is not proportionate to the rise of crude oil internationally.

"Normally, the standard is that if there's a percentage increase in the price of crude, there will also be a proportionate increase in the price of by-products, and one of those by-products is aviation fuel.

"We discovered that it's only in Nigeria that we have about a 270 or 250 percent increase, while in other parts of the world, including African countries, the increase is about 70 percent. This is why the President and Minister called for this meeting, for us to meet with the marketers face-to-face.

"We have deliberated very hotly today, and we are going to go back and wait for the outcome of their own deliberation with their regulators, and when they do that, we expect that in the next 48 hours, something drastic will be done, because no airline in this country will fly in the next seven days if something is not done.

"Not because they don't want to fly, but because the pricing of the products needed to fly may not be available to us since we don't have the money borrowed at 35 percent and 30 percent to continue paying only fuel marketers to fly.

"All over the world, airlines have increased and introduced fuel surcharges and all manner of things, and even gotten some reprieve from their governments, but in Nigeria, these airlines have been flying, but we cannot endure for long".

The Authority Chief Executive of NMDPRA, Engineer Saidu Aliyu Mohammad, said the focal persons would arrive at a favourable pricing.

"We are going to discuss with our marketers and see a way out. We are also going to look at the template, the framework on which pricing is made, and see where we can come in so that we can have a smoother conclusion at the end of the day.

"We would not like to see a situation where the airlines would shut down. We are the regulator, and our role is to facilitate, not to get anyone out of business.

"Inasmuch as we want the airlines to run, we also want the marketers to continue doing their business. So we have to have a midway, and we have decided that within the next 48 hours to 72 hours, we will definitely discuss and come out with conclusions, and all Nigerians will hear about that."