Jet A1 Price Surge Adds Fresh Cost Pressure for Nigerian Airlines
By Aboki Forex —
Nigerian airlines are facing higher operating costs after aviation fuel prices rose by about 20 per cent, with Jet A1 selling for between about N1,190 and N2,150 per litre across airports. The increase comes amid global oil supply disruptions linked to tensions between the United States and Iran, and attacks on Saudi Arabia’s oil facilities by Iran-backed Houthi fighters.
For airlines, the fuel disruption has translated into higher expenses and increased operating costs. Domestic carriers are seen as more vulnerable because they operate in a difficult business environment marked by high costs and narrow profit margins.
Airport prices vary widely
A survey of airports nationwide shows that marketers charge different prices for aviation fuel. In Lagos, Jet A1 sells between N1,719 and N2,100 per litre, although only two marketers offer the product at an average price of about N1,750.
In Abuja, one supplier sells at N1,769 per litre while another charges N1,844. Other marketers offer the product at prices ranging from N1,190 to N2,150. In Kano, the lowest recorded price is N1,794 per litre from one marketer, while other suppliers charge between N1,851 and N2,047.
Port Harcourt has five aviation fuel suppliers, with the cheapest price put at N1,764 per litre. Other marketers sell Jet A1 for between N1,904 and N2,109. The survey also showed prices of N2,047 in Anambra, N1,990 in Benin and N1,990 in Enugu. In Ilorin and Sokoto, Jet A1 sells for N2,120 and N2,138 per litre, respectively.
Airlines seek Tinubu’s intervention
The increase has raised the operating expenses of both domestic and international carriers since the crisis began in the first quarter of the year. The Airline Operators of Nigeria has in recent months sought a meeting with President Bola Tinubu to discuss the financial and regulatory difficulties confronting the sector.
Allen Onyema, Chief Executive Officer of Air Peace and Vice President of the AON, said direct presidential intervention could help address some of the problems affecting Nigerian carriers. Onyema argued that Nigeria’s reputation as a difficult environment for airline businesses could change if the factors responsible for the industry’s struggles receive the attention of the Federal Government.
According to Onyema, one of the major issues requiring attention is the country’s system of taxes and aviation-related charges. He said domestic operators were seeking an opportunity to present their concerns directly to President Tinubu, whom he described as a listening leader.
Onyema maintained that a more balanced approach to taxes and charges could help create a sustainable environment for airlines, aviation agencies and passengers. He said addressing these structural challenges would help reduce the financial pressure on domestic operators and improve the long-term viability of Nigeria’s aviation industry.
What it means for travellers and airlines
Higher Jet A1 prices could keep pressure on ticket prices and airline margins. For Nigerian businesses that depend on air travel and cargo, the cost outlook remains tight unless fuel prices ease and the burden of taxes and charges is reviewed.