Jet Fuel Price Surge Sparks Calls for FG To Suspend Aviation Charges

The Nigerian aviation sector is facing a critical juncture as soaring jet fuel prices threaten to ground operations. Airline operators, who had planned to suspend flights from April 20, have now paused these plans after Minister of Aviation and Aerospace Management, Festus Keyamo, intervened, appealing for restraint and promising government action.

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Airline operators temporarily shelve plan to suspend operations

This reprieve, however, is temporary. The core issue remains the exorbitant cost of aviation fuel, which operators report has risen to N3,100 per liter. This dramatic increase, disproportionately higher than the rise in crude oil prices, has placed immense strain on airline finances. Stakeholders are urging the government to consider suspending various aviation charges, which they claim constitute up to 35% of airfare, for at least three months. This measure, they argue, is essential for the survival and growth of domestic airlines.

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Keyamo appeals for calm, assures govt will address issues

Adding to the complexity, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has dismissed concerns about a fuel shortage, stating that the country has a comfortable 74-day supply of aviation fuel. This assertion, while reassuring on the supply front, does little to address the price gouging that airlines are experiencing.

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NMDPRA: No jet fuel scarcity, 74 days stock available

From a Nigerian perspective, this situation highlights the delicate balance required to maintain a functional aviation sector. While the government's intervention is welcome, a sustainable solution must address both fuel pricing and the burden of regulatory charges. The potential suspension of operations, even if temporarily averted, underscores the fragility of the industry and the urgent need for comprehensive policy reforms to ensure its viability and affordability for passengers.

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Analysts warned that without the suspension of multiple charges in the sector, airline operators, who have threatened to suspend all flight operations from April 20, may be forced to pass on higher costs to passengers, further straining an already fragile industry.