MEMAN attributes surge in jet fuel prices to developments in Middle East

The Major Energies Marketers Association of Nigeria (MEMAN) has attributed the surging prices of aviation fuel to geopolitical tensions in the Middle East, which have disrupted global supply chains.

This was stated in a letter issued by Clement Isong, the Executive Secretary and Chief Executive Officer of MEMAN, on Thursday in Lagos.

The correspondence was in response to concerns raised by the Airline Operators of Nigeria (AON), which cautioned about potential service interruptions due to Jet A1 fuel now costing N3,300 per litre.

Isong said the surge in Jet A1 prices had placed heavy pressure on airlines, threatening the sustainability of the aviation sector and wider economy.

He explained that Middle-East tensions had affected pricing and availability of middle distillates, including diesel and Jet A1.

“It is important to note that transporting Aviation Turbine Kerosene is governed by strict safety and quality protocols.

“These requirements are more stringent than for most petroleum products and involve specialised handling, dedicated equipment, and rigorous quality checks.

“These safeguards make ATK logistics and distribution more costly than other petroleum products.

“We want this context clearly understood when assessing pricing within the sector,” he said.

Isong said reducing distribution costs remained an ongoing priority for MEMAN.

“In light of this, we are surprised at the N3,300 per litre quoted to some operators.

“MEMAN members do not fix prices due to competition law, but this figure is over N1,000 above our surveyed market average,” he said.

He urged affected operators to seek alternative suppliers, noting that more competitive prices were available.

“Our survey confirms better-priced options exist, and members remain committed to fair, market-reflective pricing.

“We have also seen indications of falling costs, which should soon reflect in market prices,” Isong said.

He advised AON members to adopt longer-term supply contracts instead of spot pricing.

“This approach offers price stability, improved cash flow, and reduced exposure to daily market fluctuations,” he said.

Isong said MEMAN was engaging regulators and had submitted proposals to ease pressure on the aviation sector.

He added that discussions with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders would continue.

“We remain committed to working with all parties to ensure stability in the downstream sector while supporting critical services like aviation,” he said.

AON President, Dr Abdulmunaf Sarina, warned on Wednesday that rising costs were unsustainable.

Sarina said domestic airlines might suspend operations from Monday due to the surge in aviation fuel prices.

businesslensAfrica.com.