FG Sets Jet Fuel Lifeline For Airlines
The Federal Government has moved to ease pressure on Nigerian airlines by asking fuel marketers to sell jet fuel directly to operators and allow them a 30-day payment window.
The step follows emergency talks involving aviation agencies, oil regulators, airline operators and marketers as airlines struggle with rising fuel prices.
Stakeholders at the meeting agreed on a new fuel price range of N1,760 to N1,988 per litre in Lagos and N1,809 to N2,037 in Abuja, while regulators were urged to review pricing components linked to international oil prices.
The government also wants fewer airport fuel distributors to help improve pricing and supply efficiency.
Airlines say the situation has become unbearable, with operators now spending over N7 million to fuel a single domestic flight.
Ibom Air revealed that its per-flight fuel cost has jumped from N2.1 million in January to N7.6 million, forcing airlines to absorb huge losses while trying to keep fares stable.
At the same time, Dangote Refinery is making strong gains from jet fuel exports, with most of its daily output sold abroad at premium prices.
While the refinery says it still meets most local demand, airline operators warn that unless fuel prices drop soon, they may be forced to cut flights or shut down operations entirely.
