A crucial meeting convened yesterday by the Minister of Aviation and Aerospace Development, Festus Keyamo, with the Airlines Operators of Nigeria (AON), oil marketers and regulators ended in a deadlock, with no agreement reached on reducing the soaring cost of aviation fuel (Jet A1).

Keyamo, who briefed journalists after the meeting, said consultations would continue over the next 48 to 72 hours to find a workable solution to the nearly 300 per cent surge in aviation fuel prices, News.Az reports, citing All Africa.

He acknowledged that the current pricing regime was putting severe pressure on airline operators, warning that they may be forced to increase airfares to stay afloat.

According to the minister, the meeting, held with the approval of President Bola Tinubu, brought together key industry stakeholders for the first direct engagement between airline operators and fuel marketers."We have the AON, the oil marketers who sell Jet A1 to the airlines, the chief executives of major airlines, and regulators from the petroleum sector, led by the Permanent Secretary of the Ministry of Petroleum Resources," he said.

Keyamo noted that discussions were frank, with all parties outlining their challenges. While airlines raised concerns over unsustainable fuel costs, marketers pointed to their own operational constraints.

"We examined the pricing margins to determine whether there is profiteering or undue price inflation. The marketers also explained the difficulties they are facing, while the airlines spoke from their own perspective," he added.

To break the impasse, the minister said all parties agreed to appoint focal persons who would engage intensively over the next few days to arrive at a fair and reasonable pricing structure.

"The airlines cannot continue operations beyond the next seven days without adjusting prices. They have been stretched to the limit," he said.

He stressed that although the sector operates within a free market system, it must not be allowed to operate without checks.

"A free market is not a licence to go haywire. Whether there is any form of collusion will become clearer in the coming days. We will inform the public of the outcome," Keyamo said.

On his part, the chairman of Air Peace, Allen Onyema, attributed the sharp rise in aviation fuel prices to global tensions, particularly the U.S.-Iran conflict, but argued that the increase in Nigeria is disproportionately high."Globally, when crude oil prices rise, the cost of by-products such as aviation fuel increases proportionately. However, what we are seeing in Nigeria is abnormal," Onyema said.

He noted that while other countries have recorded increases of about 70 per cent, Nigeria has witnessed a spike of between 250 and 270 per cent.

"This disparity is the reason the government intervened and called this meeting," he said.

Onyema warned that unless urgent action is taken, domestic airlines may be forced to suspend operations.

"We have all presented our concerns and will await the outcome of further consultations. But let it be clear: if nothing is done within the next seven days, no domestic airline will be able to continue operations.

"It is not a matter of willingness to fly, but of survival. The cost of fuel and operations has become unsustainable, and airlines simply do not have the financial capacity to continue under these conditions," he said.

News.Az 

By Leyla Şirinova