Reports from the Aviation Industry say that the price of Jet A1, otherwise known as aviation fuel, has continued to rise. It now hits N607 per litre in some airports in the country.
This is the second time the price of the product would rise astronomically in one week.
Just last week, the price of the product rose from N400 per litre to N426 a litre.
The price of the product has continued to climb in the last year in the local market.
In February 2021, the product was sold at N190 per litre in the local market, but by the end of the year, the product rose to between N350 and N370 per litre in the local market, which was about a 90 per cent increase from the former price of N190 per litre.
It was gathered that the product goes for N599 per litre in Abuja and Port Harcourt airport; N577 and N581 per litre at the Murtala Muhammed Airport (MMA), Lagos, while the same quantity goes for N607 per litre at the Aminu Kano International Airport (AKIA).
Information gathered from one of the operators indicated that the price of the product may rise further before the end of the month due to its scarcity, while airlines have continued to delay and cancel flights due to the scarcity of Jet A1 in the last two months.
Also, it was gathered that fuel marketers now ration the product for airlines due to its scarcity.
Another petroleum marketer, who spoke with newsmen but pleaded anonymity, however, agreed that the price of the product has skyrocketed in the local market in recent months, but debunked that it was scarce.
According to the fuel marketer, most of the domestic airlines could not purchase the fuel because of debts, stressing that “the airlines know what to do.”
He explained that the fuel marketers only decided to withhold supply to the debtor airlines.
Speaking on the high price, the official attributed this to the rise in foreign exchange and the ongoing Russia-Ukraine war.
He said: “The truth is airlines owe the marketers. They are collecting money upfront from passengers, but they are not paying the marketers. I don’t want to mention names.”
Just last month, Dr Obiora Okonkwo, the Chairman, of United Nigeria Airlines (UNA), had raised the alarm that the price of aviation fuel rose by over 100 per cent in the last year.
Besides, Okonkwo stated that the exchange rate had also jumped from N340 to N570 to a dollar within the same period, stressing that it was pertinent for the government to look critically into the development of the industry in order to arrest collapse.
Also, Barr. Allen Onyema, the Chairman, Air Peace, had told our correspondent that aviation fuel prices gallop between N400 and N500 at present in some airports.
Last week, the Federal Competition and Consumer Protection Commission (FCCPC) had accused Airline Operators of Nigeria (AON) of unanimously fixing airfares base to N50,000 minimum.
FCCPC in its report, accused AON, the umbrella body of indigenous airlines of encouraging and ensuring price-fixing, saying the airlines colluded to increase airfares against section 107 (1)(a) and section 108 of the Federal Competition and Consumer Protection Act, 2018 ( FCCPA).
A statement signed by Mr Babatunde Irukera, the Executive Vice Chairman, FCCPC, insisted that the airlines were culpable as they did so in a coordinated manner, stressing that the FCCPA prohibits conduct or any coordination between competitors including on the platform of trade associations.
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