Nigeria’s federal government has stepped in to stabilise rising jet fuel prices in a bid to support airlines and prevent further increases in airfares.
The move, led by Festus Keyamo and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, comes amid growing tensions between airlines and fuel marketers over soaring costs.
However, the intervention has raised concerns among industry stakeholders, who warn that fixing prices in a deregulated market could lead to fuel scarcity, supply disruptions, and black-market activities.
Some analysts argue that market forces should be allowed to determine prices, cautioning that government control could create conditions similar to a subsidy regime.
Airlines have continued to struggle with rising fuel costs. Ibom Air said its fuel expenses have more than tripled in recent weeks, raising fears of possible flight reductions if the situation persists.
The government has held meetings with key players in the sector and proposed price benchmarks, while also exploring measures such as direct fuel supply to airlines and flexible payment arrangements.
Meanwhile, the Trade Union Congress of Nigeria has urged the government to take immediate measures to check increases in the pump price of petroleum products and the resultant hardship imposed on workers and citizens.
It also restated its earlier call on the federal government to allocate part of the excess crude revenue—earned above the budget benchmark—to subsidise crude oil supplied to domestic refineries,
In a communique issued after its National Executive Council meeting in Abuja, on Monday, the union noted that the combined effects of global crude oil volatility, exchange rate pressures, and domestic supply constraints have continued to drive up the cost of petrol, diesel, and aviation fuel, thereby worsening transportation costs, food prices, production expenses, and overall living conditions.
As a way of cushioning the hardship, TUC urged the government to grant a 50 percent reduction in taxes on manufacturing companies and workers within this period to ease economic pressure and support productivity.
TUC further demanded a 50 percent reduction in taxes on manufacturing companies and workers within this period to ease economic pressure and support productivity.
The TUC also condemned the continuous increase in electricity tariffs without corresponding improvements in service delivery.
The union said Nigerians were being compelled to pay more for unreliable power supply, estimated billing, and poor customer service.
TUC further condemned what it described as the unfair labour practice in the food and Beverages sector particularly the impasse between NAFDAC and distilled companies.
It appealed to the Minister of Health to intervene by bringing the parties to the negotiating table.
Onyebuchi Ezigbo, Chinedu Eze and Okon Bassey
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