Oil marketers have said the steady rise in price of aviation fuel could reach N 700 per litre next week.
About 24 hours ago, the price rose from N430 to N580.
The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, told The PUNCH that the Russia-Ukraine war and other related factors might fuel further increases in the prices of aviation fuel and other petroleum products.
Aviation fuel, also known as Jet A1, which sold for N190/litre and later N360/litre in January this year, rose to between N579 and N607/litre on Tuesday.
Osatuyi said airlines might need to brace for further increases in the price of Jet A1 due to high exchange rate, among other factors.
Osatuyi said, “Well, the sharp increase we are seeing in crude price is a correspondingly a sharp increase we are also recording in the prices of aviation fuel and other petroleum products. Prior to the Ukraine-Russian crisis, over two weeks ago, crude was still around $100 and $105 per barrel.
“But as of today, crude is around $139-$140 per barrel; that is about 40 per cent increase. You can see that on the aviation fuel, it went up from about N450/litre to about N570 per litre; that is a huge increase.
“We buy diesel, kerosene and aviation fuel through the black market. The marketer will also pay for the oil vessel at the black market rate and the exchange rate is also at the black market rate. So, you pay cash to people who are bringing in these products.
“So, the prices of these petroleum products go in line with the price of crude oil. I am sure that by next week, marketers will start bringing in vessels at $140 per barrel.
“So the hike goes in hand with the increase in the price of crude oil. By next week, don’t be surprised we are hitting N700. The exchange rate today is N585 while the official rate is N416; and the government does not give forex allocation for the purchase of kerosene, diesel and aviation fuel.”
