Airlines in Nigeria are warning that domestic airfares may increase as the price of aviation fuel continues to rise, thereby adding pressure on the operational costs.
Daily Tech Nigeria gathered from an existing report that Jet A1 fuel is currently selling for about ₦1,835 per litre in Kano, ₦1,820 in Abuja, ₦1,815 in Port Harcourt and ₦1,780 in Lagos. Operators say the rise could lead to a review of ticket prices, subject to regulatory approval from the Nigerian Civil Aviation Authority.
Many Nigerians are speculating that the oil and fuel prices in Nigeria are rising as global crude‑oil markets climb above 90 dollars per barrel, which they claim is driven by the escalating tensions in the Middle East involving the United States, Israel and Iran.
The spokesman for the Airline Operators of Nigeria, Obiora Okonkwo, in an interview with Arise TV, said operators are assessing how to respond to the situation while complying with existing regulations;
“As regards to us in Nigeria, before the war we were getting aviation fuel at about ₦1,000 per litre. As we speak right now, the last fuel we had this evening was going for about ₦1,800” – Okonkwo
He added that airlines must submit any proposed fare adjustments to the Nigerian Civil Aviation Authority at least two weeks before implementation, in line with regulatory requirements.
Aviation experts like Samuel Caulcrick said the rise in aviation fuel prices is linked to the dependence of Nigeria on the U.S. dollar for petroleum transactions, even when fuel is produced locally;
“If not for the dollar, the Jet A1 you are talking about would be around ₦900” – Caulcrick
He added that fuel suppliers and refiners must convert naira earnings into dollars to purchase crude oil at international market rates.
Caulcrick also stated that the strategies put in place by the Central Bank of Nigeria to stabilise the naira have helped prevent further increases in fuel costs. Without such intervention, he said, the currency could weaken further and push aviation fuel prices even higher.
Stakeholders in the aviation sector, express concerns that travellers could reduce their travel plans if fares increase significantly, likewise, lower demand could affect passenger numbers and put additional pressure on airline revenues.
