Nigeria’s aviation sector is once again feeling the heat of global oil market tensions as the price of Jet A1 aviation fuel climbs sharply, raising concerns about the sustainability of domestic airline operations and the cost of air travel.
Fresh industry data shows that aviation fuel prices have surged by about 71.86 per cent in recent weeks, a development analysts link to volatility in the global oil market following heightened geopolitical tensions involving Iran.
The surge is already filtering through the aviation value chain, forcing airlines to grapple with rising operating costs while passengers face the prospect of even higher ticket prices.
Jet A1 Climbs Above ₦1,700 per Litre
Depot pricing across major supply points indicates that Jet A1 now trades above ₦1,700 per litre in several parts of the country.
Checks by Petroluemprice.ng shows that at Matrix depot in Warri, aviation fuel currently sells at ₦1,710 per litre, representing a 71.86 per cent increase compared with earlier market levels, while Matrix Lagos: sells at ₦1,700 per litre
Matrix Port Harcourt: goes for ₦1,710 per litre
Meanwhile, supply from the Dangote Refinery is currently priced around ₦1,775 per litre, reflecting a slight 1.93 per cent dip in recent market movements.
Industry watchers say the upward pressure on aviation fuel reflects broader developments in the international oil market, where fears of supply disruptions linked to developments around Iran have triggered price volatility.
Fuel Now Swallowing Airline Operating Costs
For airlines, the surge in Jet A1 prices presents a familiar challenge.
Aviation fuel typically accounts for 30 to 35 per cent of airline operating costs under normal market conditions. However, with the latest spike in prices, fuel expenses could now rise to 40 to 45 per cent of total operating costs, significantly squeezing airline margins.
Industry experts note that Nigerian carriers are particularly vulnerable because aviation fuel remains largely exposed to global price swings and foreign exchange pressures.
Ticket Prices Heading Higher
According to The Guardian, the immediate impact may have already been felt by travellers.
Domestic airfares that previously averaged about ₦150,000 on major routes such as Lagos–Abuja are increasingly moving towards ₦200,000, especially during peak travel periods.
Airline operators say the trend is difficult to avoid, given the central role aviation fuel plays in flight operations.
A typical domestic flight using a Boeing 737 aircraft can consume between 3,500 and 4,000 litres of fuel on routes such as Lagos–Abuja.
At current prices above ₦1,700 per litre, the cost of fuelling a single flight can run into over ₦6 million, nearly double what airlines paid when Jet A1 traded below ₦1,000 per litre.
Global Market Pressures Persist
Globally, analysts warn that jet fuel prices could climb further if tensions in key oil-producing regions persist. Some forecasts suggest international jet fuel prices could reach between $150 and $200 per barrel if supply disruptions intensify.
For Nigeria’s aviation sector, the development highlights the continuing vulnerability of the industry to global oil market shocks.
Unless fuel prices ease or supply conditions improve, passengers may have to brace for a prolonged period of elevated airfares as airlines struggle to balance rising operational costs with the need to remain commercially viable.