Airfares in Nigeria are set to increase in the coming weeks following a sharp rise in aviation fuel (Jet A1) costs, a development putting significant pressure on airline operations.
The surge in fuel prices is linked to the ongoing crisis in the Middle East, which has disrupted crude oil production and distribution, driving operational costs higher for domestic carriers. Jet A1, previously priced between N900 and N995 per litre, now ranges from N2,500 to N2,700 depending on delivery points, significantly inflating expenses for airlines.
Industry sources warn that ticket prices could double if fuel costs continue their upward trend. Aviation fuel, which now accounts for approximately 45 per cent of total operating costs, has overtaken maintenance as the largest expenditure for airlines.
Chibuike Uloka, spokesperson for United Nigeria Airlines, called on the Federal Competition and Consumer Protection Commission (FCCPC) to urgently engage operators about fare sustainability. He highlighted that despite fuel costs exceeding N2,000 per litre, airlines have maintained fares around N195,000, but warned that operations may become unsustainable if prices reach N3,000.
The rising fuel costs are compounded by Nigeria’s inability to produce enough crude oil for domestic refineries, forcing companies like Dangote Petroleum Refinery to import crude at higher global prices, which have jumped from $65–$69 to about $112 per barrel.
Aviation experts predict that fares could rise by 20–25 per cent in the coming weeks if fuel prices continue to climb, leaving airlines with limited options but to adjust ticket costs to maintain operations.
