The Digest: Aviation fuel prices have surged from N900–N995 to between N2,500 and N2,700 per litre, driven by the Middle East crisis that has pushed crude oil prices to about $112 per barrel. The spike has placed immense pressure on domestic airlines, with jet fuel now accounting for up to 45% of operational costs—up from 30–35% previously. Operators warn that airfares may rise by 20–25% in the coming days, and if fuel hits N3,000 per litre, some airlines may be forced to suspend operations. Industry players are calling for government engagement on pricing sustainability.
Key Points:
- A 100% surge in jet fuel prices threatens to double airfares, making air travel increasingly unaffordable for Nigerians.
- Airlines are currently absorbing costs by maintaining fares around N195,000, but operators say this model is unsustainable.
- If fuel hits N3,000 per litre, some carriers may suspend operations, reducing capacity and pushing fares even higher.
- The crisis follows global crude price volatility triggered by the escalating US-Israel-Iran conflict.
- Industry experts project a 20–25% fare increase in the coming days, with further hikes possible if the fuel price trend continues.
Sources: The Punch
