Major Energies Marketers Association of Nigeria (MEMAN) says it empathises with the difficult situation currently faced by the Nigerian aviation sector. The sharp increase in Jet A1 prices has placed significant pressure on airline operations, and the Association fully understands the serious implications this has on the sustainability of the aviation sector and the broader economy. The challenge is that the ongoing geopolitical tensions in the Middle East have severely disrupted global supply chains and significantly affected the pricing and availability of middle distillate products such as diesel and Jet A1. Transport costs within the country have therefore gone up by an average of 50%.
MEMAN response was due to a letter written by Airline Operators of Nigeria (AON) bringing concerns of the hike on Jet AI to the association’s attention.
MEMAN stated further that it is also important to note that the transportation and distribution of ATK is governed by specific protocols for quality assurance and safety reasons, which are more stringent than those applicable to most other petroleum products. Dedicated equipment, specialised handling procedures, and rigorous quality checks at every stage of the supply chain are non-negotiable requirements. These necessary safeguards inherently make the logistics and distribution of ATK a more cost-intensive undertaking compared to other petroleum products.
This context has to be clearly understood as part of any assessment of pricing in the sector.
That said, MEMAN wishes to assure that reducing the cost burden of petroleum product distribution is a matter of active and ongoing attention within its Association. Steps to improve safety and simultaneously reduce logistics, delivery, and operational costs across the downstream value chain are continually being discussed, shared, and implemented between 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.”
“In light of the above, we must express our surprise at the price of #3,300 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 A1 carried out for this exercise, after receipt of your letter.
The Association would therefore strongly encourage any operators currently being charged at those levels to exercise their commercial right to seek alternative suppliers. “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 indications of falling costs, which should begin to reflect in market prices in the coming weeks.”
The Association encourages 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. Following due consultations, we have formally communicated several practical suggestions and recommendations aimed at mitigating the impact on the aviation sector and the wider economy. We continue to engage constructively with the NMDPRA and other key stakeholders to find balanced and sustainable solutions.”
MEMAN remains committed to working collaboratively with all stakeholders, including the Airline Operators of Nigeria, to ensure the long-term stability and growth of the downstream petroleum sector while supporting critical national services such as aviation.
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