In Nigeria, the Jet A1 known locally as aviation fuel, now sells for about N265 per liter.
The situation has provoked panic in the sector, with many suggesting that more airlines could be forced to close shop.
In Kano, Kaduna and other states in the north, the price of the product currently ranges between N255 and N265 per liter. In Lagos, it sells for between N240 and N250, depending on the quantity being bought and the marketer doing the selling.
Between January and February 2016, a liter of Jet A1 cost N120, implying that the cost has risen by over 110 percent increase in 12 months.
In oil-rich Saudi Arabia, for instance, local carriers pay 20 cents per liter, while foreign airlines pay 41 cents.
A staff of a major oil marketer who confirmed the price jump to blamed the development on the naira’s further slide against the dollar. A dollar, which exchanged at N490 a few weeks ago, now does for N506 in the black market.
“No one can blame the major oil marketers for the recent increase in the price of Jet A1. We all buy dollars from the black market, though Federal Government, through the banks sell dollars to investors at a relatively cheaper rate. But the unfortunate thing is that when you approach them, they collect your money and close up. The money may not be available to you even in the next three months.
“The industry we are in does not wait for anyone. We can’t wait for three months to do business. So, we have to approach the black market for dollars, which is at a very high rate when compared to what government sells. You can see that subsidy has been re-introduced to Premium Motor Spirit (PMS). It is because of the continuous free fall of naira,” he explained.
A management staff of Aero Contractors warned that the high price of Jet A1 fuel is likely to force more airlines out of operation except the Federal Government comes up with an intervention.
Sahara Reporters
