Airline operators in Nigeria have raised concerns over the sharp increase in the price of aviation fuel, saying the development is placing severe financial pressure on domestic carriers.
The Airline Operators of Nigeria (AON) revealed that the price of Jet-A1, the fuel used by commercial aircraft, has surged from about N1,000 per litre two weeks ago to nearly N1,800 per litre in several parts of the country. The increase represents roughly an 80 per cent rise within a short period.
Industry players say the sudden spike has intensified operational challenges for airlines, noting that aviation fuel accounts for between 30 and 35 per cent of total operating costs.
The rise in price has been linked to the ongoing conflict in the Middle East, which has caused instability in global energy markets.
Speaking on Channels Television on Friday, AON spokesperson Obiora Okonkwo said airlines are currently absorbing the impact rather than immediately transferring the additional cost to passengers.
According to him, carriers are already operating under significant financial strain.
“Two weeks ago, Jet-A1 was selling for about N1,000 per litre, but today it is around N1,800, and even higher in some locations. That is nearly an 80 per cent increase,” Okonkwo said.
He added that airlines are currently selling tickets at prices that are not profitable while trying to cushion the effect on travellers.
“We are taking the hit for now and losing a lot of money,” he said.
Okonkwo warned that if the situation persists, airlines may be forced to adjust ticket prices in the near future. However, he noted that operators remain mindful of the economic hardship facing Nigerians.
He expressed optimism that improved local refining capacity could help stabilise aviation fuel supply and pricing in the country. According to him, government engagement with the Dangote Refinery could provide a potential solution if market conditions do not improve.
Okonkwo also cautioned that prolonged high fuel prices could threaten the survival of some domestic airlines.
Reacting to the decision by the Federal Competition and Consumer Protection Commission (FCCPC) to sanction about five airlines over alleged price fixing, he rejected the claim, stressing that ticket pricing in the aviation sector is fully deregulated.
He explained that different airlines operate with varying cost structures, which influence their ticket prices.
Okonkwo further urged regulators to take into account the fragile state of the aviation industry and avoid actions that could worsen the challenges faced by operators.
