FG Begins Talks With Oil Marketers And Airlines Over Soaring Jet A1 Prices Amid Shutdown Threat

FG Begins Talks With Oil Marketers and Airlines Over Soaring Jet A1 Prices Amid Threat The Federal Government has commenced urgent dialogue with oil marketers and airline operators over the rising cost of aviation fuel Jet A1 following growing concerns that domestic carriers may either suspend flight operations or significantly increase airfares. The development comes as airlines warn that the continuous spike in Jet A1 prices has made operations increasingly unsustainable, with some operators already threatening disruptions within days if no solution is reached. The talks were confirmed after a high-level meeting involving stakeholders in the aviation and downstream petroleum sectors, which reportedly lasted several hours but ended without a final agreement. According to officials, the government is moving to set up an ad-hoc committee comprising representatives of oil marketers, airline operators, regulators, and relevant agencies to urgently review pricing concerns and prevent a nationwide aviation disruption. The Minister of Aviation and Aerospace Development, Festus Keyamo, said discussions were frank and acknowledged the severe pressure airlines are currently facing due to the cost of Jet A1. He noted that airlines are struggling with operational sustainability as fuel prices continue to rise sharply, with operators warning that continued flights may no longer be viable under current market conditions. “We had frank discussions. Both sides presented their challenges. The airlines have been stretched to their limits and cannot continue at the current prices,” Keyamo said. He added that focal persons would be appointed from the government, marketers, regulators, and airlines to work within a 48 to 72-hour window to arrive at a fair and sustainable pricing framework. Airline operators have consistently argued that the surge in Jet A1 prices reportedly rising by over 300 percent in recent months has placed extreme financial pressure on the sector, making flight operations difficult to sustain. The government, however, maintained that while the market is deregulated, pricing must remain fair and not exploitative, warning that urgent corrective steps may be taken where necessary.The intervention is part of broader efforts to avert a potential shutdown of flight operations, which could disrupt air travel, commerce, and mobility across the country.