Allocate Crude to Local Refiners to Resolve Jet Fuel Crisis, ASRI Tells FG

The Aviation Safety Roundtable Initiative (ASRI) has urged the Federal Government to address Nigeria’s persistent aviation fuel crisis by allocating crude oil directly to local refineries.

In a statement signed by its President, Air Commodore Ademola Onitiju (retd.), ASRI argued that such a move would reduce waste, lower government cost exposure, and bring long-sought stability to the domestic aviation sector.

According to the body, the sector is facing a deep and prolonged crisis driven largely by the escalating cost of Jet A1 fuel, which currently ranges between N1,650 and N2,037 per litre. Fuel now accounts for nearly half of airline operating expenses, forcing carriers to raise fares beyond the reach of many Nigerians.

ASRI criticised the Federal Government’s earlier intervention, a N60 billion invoice discount to airlines, as ineffective. It noted that jet fuel prices have remained unchanged, airline debts have not reduced, and passengers have not benefited from lower fares. The cargo logistics, tourism, and hospitality sectors have also seen no growth.

Describing the discount as a “hollow largesse” that offered no structural relief to the aviation ecosystem, ASRI proposed an alternative: a Fuel-for-Stability Programme based on direct crude allocation to local refiners. The initiative, which would focus exclusively on domestic operators, aims to eliminate wasteful spending, reduce government cost exposure, and create a stable fuel pricing structure.

The organisation stated that even if the eventual fuel price settles at N300 or slightly above, the key objective is to establish a predictable crude supply that lowers operating costs. This would enable lower fares, increased passenger traffic, more profitable airlines, stronger regulatory agencies, and a healthier aviation ecosystem.

“Lower air fares are not just consumer benefits; they are catalysts for market expansion, passenger traffic growth, higher load factors, and the economies of scale that make commercial aviation sustainable,” ASRI said.

It added that a country of over 220 million people should not operate an aviation market accessible only to a narrow segment of its population. Reduced fares, it argued, would naturally expand the market and drive sustainable growth.

ASRI maintained that the approach is pragmatic, not theoretical, citing international examples. India achieved some of the world’s lowest domestic fares and explosive traffic growth by stabilising fuel supply and prioritising structural reforms. Turkey, Indonesia, and Brazil also transformed their aviation sectors by focusing on affordability, volume growth, and ecosystem-wide efficiency, rather than piecemeal interventions that deliver no lasting value.