AIRLINE OPERATORS RAISE CONCERNS AS AVIATION FUEL HITS N1,800 PER LITRE
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By: Balogun Ibrahim
The Airline Operators of Nigeria (AON) has raised alarm over the steep increase in the price of Jet-A1, or aviation fuel, warning that domestic airlines are under severe financial strain.
The group said the price of aviation fuel, which was around N1,000 per litre two weeks ago, has surged to about N1,800 per litre in many parts of the country—an approximate 80 per cent increase in a short span.
Aviation fuel accounts for the largest portion of airline operating costs, representing 30 to 35 per cent of total expenses. The recent price hike has been attributed to the ongoing conflict in the Middle East, which has driven up global fuel prices.
Speaking to The Media on Friday, AON spokesperson Obiora Okonkwo said the surge has placed airlines under significant financial pressure, noting that most carriers have so far avoided immediately passing the additional cost onto passengers.
He said, “Two weeks ago, Jet-A1 was selling at about N1,000 per litre, but today it has risen to around N1,800, and even higher at some stations. That’s an increase of roughly 80 per cent—a significant spike.
“We are closely monitoring the situation in the Gulf. At the moment, we are absorbing the impact, selling tickets at non-profitable prices, and incurring substantial losses.”
Okonkwo warned that if the situation continues without intervention, domestic airlines may soon be compelled to review and increase ticket prices.
“We just hope this situation doesn’t last long. Price adjustments may be inevitable soon, but we remain very mindful of the economic realities facing Nigerians and our travellers,” he said.
Okonkwo also expressed optimism that increased domestic refining capacity could help stabilise aviation fuel prices.
“The recent release of reserve crude oil will influence the market. If it does not, we expect the government to engage the Dangote Refinery. In the past two years, when there was no refinery in Nigeria, we were more helpless. Now, we are hopeful that a solution can be found,” he added.
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He warned that sustained high fuel prices could threaten the survival of some operators.
“I hope it doesn’t go beyond this, but if it does, many airlines may not be able to absorb the losses associated with the development,” Okonkwo said.
Addressing the Federal Competition and Consumer Protection Commission’s decision to sanction about five airlines over alleged price fixing, he dismissed the claims, stressing that the aviation sector operates under a deregulated pricing regime.
“There is no meeting of airlines to agree on fares. Price fixing would amount to a cartel. Each airline sets its fares based on its operational structure, as different aircraft incur different operational costs,” he said.
He added that airlines must maintain financial viability to keep their operating licences and urged regulators to consider the fragile state of the aviation sector.
“I hope they understand that this industry is highly vulnerable and avoid actions that could harm its reputation or put operators at odds with their loyal passengers,” he said.
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