Jet-A1 aviation fuel prices in Nigeria have jumped to N1,800 per litre, putting domestic airlines under severe financial pressure, says Airline Operators of Nigeria

The Airline Operators of Nigeria (AON) has raised the alarm over the sharp increase in Jet-A1 aviation fuel prices, warning that domestic airlines are under severe financial strain.

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According to AON spokesperson Obiora Okonkwo, the price of Jet-A1, which sold for about N1,000 per litre two weeks ago, has surged to roughly N1,800 per litre in many parts of the country, representing an 80 per cent increase within a short period.

Aviation fuel constitutes the largest component of airline operating expenses, accounting for about 30 to 35 per cent of total costs. Okonkwo linked the surge to the ongoing conflict in the Middle East, which has driven up global fuel prices.

“Two weeks ago, we were getting Jet-A1 at about N1,000 a litre, which today is about N1,800, and even more in some stations. We are watching the situation in the Gulf area.

Right now, what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at a very non-profitable price. We are losing a lot of money,” he said.

Potential Impact on Ticket Prices

Okonkwo warned that if the high fuel prices persist without government intervention, airlines may be forced to review ticket prices.

“We just pray it will not be for long. Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers,” he said.

He expressed optimism that increased domestic refining capacity, particularly the involvement of the Dangote Refinery, could help stabilize aviation fuel prices.

“The recent release of reserve crude oil will have an impact on the market. But if it does not, we expect the government to engage the Dangote Refinery.

We were more hopeless in a situation where there was no refinery in Nigeria. That was the last two years. Now we are hopeful that a solution can be found,” Okonkwo added.

Industry Warnings

Prolonged high fuel prices, according to AON, could threaten the survival of some domestic operators.

“I am hoping that it will not last beyond this, but if it does, many airlines may not be able to absorb the losses associated with the development,” Okonkwo said.

Responding to the recent sanctions by the Federal Competition and Consumer Protection Commission against about five airlines over alleged price fixing, he dismissed the claims, insisting that the aviation sector operates under a deregulated pricing regime.

“There is no meeting of airlines where they agree to fix prices. Fixing prices would amount to a cartel. Different aircraft attract different operational costs, and each airline determines its fares based on its own operational structure,” Okonkwo said.

He urged regulators to consider the fragile nature of the aviation sector, emphasizing that airlines must remain financially viable to retain their operating licences.

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“I pray that they understand that this sector is very vulnerable and will not take steps that could diminish the industry’s reputation or put operators on a collision course with loyal passengers,” he concluded.