Airfares May Rise in Nigeria as Aviation Fuel Price Jumps to N2,700 Per Litre
- Aviation fuel prices have surged from under N1,000 to as high as N2,700 per litre in Nigeria
- The increase is linked to Middle East tensions disrupting global crude oil supply
- Airlines warn that current ticket prices may not be sustainable if fuel costs continue rising
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
There are growing indications that airfares in Nigeria could increase in the coming weeks following a sharp rise in the cost of aviation fuel, known as Jet A1, a development that is putting pressure on airline operations.
The PUNCH reported that the spike in fuel prices is linked to ongoing geopolitical tensions in the Middle East, which have disrupted crude oil production and supply chains, raising costs for domestic carriers.
Source: Getty Images
Jet A1 price climbs sharply
Findings indicate that aviation fuel, which previously sold between N900 and N995 per litre, has surged to between N2,500 and N2,700 depending on the airport of delivery.
Industry sources said the increase has significantly raised airlines’ operating expenses, with fuel now emerging as the dominant cost driver in recent weeks.
Airline operators noted that the price of Jet A1 has remained volatile since late February 2026, when tensions involving Iran escalated, with multiple price adjustments recorded within a short period.
Airlines warn of possible fare hike
Operators said they are closely monitoring the situation, warning that a rise in ticket prices appears inevitable if current trends persist.
According to industry estimates, aviation fuel accounts for about 30 to 35 per cent of total airline operating costs, a figure that stakeholders say is increasing rapidly.
The spokesperson for United Nigeria Airlines, Chibuike Uloka, urged the Federal Competition and Consumer Protection Commission (FCCPC) to engage airlines on the sustainability of current ticket pricing.
Airlines defend ticket pricing
The FCCPC had earlier accused some airlines of price fixing, an allegation rejected by operators.
Uloka said despite fuel prices rising above N2,000 per litre, many airlines have maintained fares at around N195,000, raising concerns about how long such pricing can be sustained.
He warned that if aviation fuel reaches N3,000 per litre, some airlines may be unable to continue operations, which could reduce available capacity and push fares higher.
“Current ticket prices cannot be sustained for long under these conditions,” he said, adding that operators are struggling to keep services running amid rising costs.
Rising crude prices add pressure
Further checks indicate that crude oil prices have increased from about $65–$69 to roughly $112 per barrel, worsening the cost of aviation fuel.
The situation has also affected gantry prices, with operators warning that sustained increases will likely be passed on to passengers through higher airfares.
Industry sources also noted that Nigeria’s limited crude oil supply has affected local refining capacity, with the Dangote Petroleum Refinery reportedly importing crude to sustain production.
Source: Getty Images
Experts project fare increase
An aviation analyst, Samuel Caulcrick, projected that airfares could rise by 20 to 25 per cent in the coming days due to mounting operational costs.
He explained that aviation fuel now accounts for up to 45 per cent of total airline expenses, making it the largest cost component in the industry.
According to him, this marks a shift from previous years when maintenance costs dominated airline spending, as the sustained increase in Jet A1 prices continues to reshape the sector.
FCCPC alleges price fixing by Nigerian airlines
Legit.ng earlier reported that the FCCPC said it found evidence of price fixing and possible fare manipulation by some domestic airlines during the December 2025 festive period.
The commission noted that its interim report found patterns suggesting price fixing by some domestic airlines during the 2025 Yuletide season, emphasising that fares rose sharply to as high as N450,000 despite stable fuel prices, taxes and exchange rates during the period.
The FCCPC clarified that seasonal demand and operational constraints are still being considered before conclusions are reached.
Source: Legit.ng
