Aviation Fuel: Airlines, Marketers Negotiation Hit Deadlock After 72 Hours

Operators of domestic flights under the auspices of the Airline Operators of Nigeria (AON) and major fuel marketers after 72 hours of negotiation failed to reach a compromise on the new price for Jet-A1, also known as aviation fuel.

Fuel markers and airline operators met on Tuesday to discuss the reduction in the price of aviation fuel, which increased from ₦190 per litre about a year ago to about ₦700 per litre last week.

The increase in the fuel price saw operators threatens to embark on strike if the price of the product is not reviewed.

The airlines also threatened that flights within the domestic market may increase to ₦120,000, which allegedly rose to a minimum of ₦50,000 in late February.

The Managing Director of Aero Contractors, Capt. Abdullahi Mahmood, while confirming the development to Daily Independent said both parties were yet to reach an agreement on new pricing.

He further stated that the negotiation would continue today and hoped that a compromise is reached.

According to Mahmood, if an agreement could not be reached, the Federal Government would have to intervene.

He said: “It is a work in progress; we have not come to a conclusion, we are yet to finalise everything. We are still working on it. They made a template, but we have not finalised it. The meeting is continuing tomorrow (today).

“We don’t know when the meeting will come to an end. It’s like back and forth. Both parties are still dragging it. So, you cannot say this is when the meeting will come to an end.

“Hopefully, we are going to get something out of it. We are getting the green light from it. We have to get something from it. If we don’t get something out of it, the government will have to intervene.”

This article was originally published on Nigeria News