Jet fuel prices in Nigeria have surged to nearly N1,800 per litre following the Iran conflict, raising fears of higher airfares for domestic flights.
The cost of aviation fuel in Nigeria has surged sharply in recent days, raising concerns about possible increases in airfares for domestic travellers. Despite global crude prices easing slightly from previous highs, local jet fuel prices have climbed from about N900 per litre on February 28 to nearly N1,800 per litre following the outbreak of tensions involving Iran, Israel and the United States.
Industry reports indicate that aviation fuel currently sells for about N1,803.19 per litre at Lagos airport, N1,839.19 per litre at Abuja airport and N1,852.19 per litre at Kano airport. The spike has placed domestic airline operators under financial pressure as they attempt to maintain operations while delaying immediate fare increases for passengers.
Aviation expert John Ojikutu said fuel typically accounts for about 40 percent of an airline’s operational costs, but the current increase could push the figure close to 70 percent. He explained that with fixed charges such as landing and navigation fees largely non-negotiable, airlines would have limited options but to adjust fares or cut internal costs. “There’s no way the increase in fuel price will not affect airfare… fuel is about 40 percrnt of the operational cost. If an airline is buying fuel at an increased cost, you can be sure that operational cost is going to be increased by that amount,” Ojikutu noted.
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