Aviation Fuel Prices Soar to N2,150 as Nigerian Airlines Consider Another Tariff Hike
- Nigerian airlines are facing higher operating costs as aviation fuel prices rise by about 20 per cent amid global oil supply disruptions
- Jet A1 prices vary widely across Nigerian airports, ranging from about N1,190 to N2,150 per litre
- Domestic airlines are urging President Bola Tinubu to address high taxes, charges and other challenges affecting the industry
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Nigerian airlines are facing renewed pressure on their finances following a sharp rise in the cost of aviation fuel, with Jet A1 prices increasing by about 20 per cent amid growing tensions between the United States and Iran.
The conflict has affected crude oil shipments, while attacks on Saudi Arabia’s oil facilities by Iran-backed Houthi fighters have added further uncertainty to an already volatile global energy market.
Source: UGC
For airlines, the disruption has translated into higher fuel expenses and increased operating costs, compounding the challenges confronting operators in Nigeria.
Jet A1 prices vary across airports
A survey of airports nationwide shows significant differences in the prices charged for aviation fuel by marketers.
In Lagos, Jet A1 currently sells between N1,719 and N2,100 per litre, although only two marketers offer the product at an average price of about N1,750.
Prices in Abuja also vary considerably. One supplier sells at N1,769 per litre, while another charges N1,844, with other marketers offering the product at prices ranging from N1,190 to N2,150.
In Kano, the lowest recorded price is N1,794 per litre from one marketer, while other suppliers charge between N1,851 and N2,047.
Port Harcourt has five aviation fuel suppliers, with the cheapest price put at N1,764 per litre. Other marketers sell Jet A1 for between N1,904 and N2,109.
The survey also showed prices of N2,047 in Anambra, N1,990 in Benin and N1,990 in Enugu. In Ilorin and Sokoto, Jet A1 sells for N2,120 and N2,138 per litre, respectively.
Domestic airlines bear brunt of rising costs
The increase in aviation fuel prices has further raised the operating expenses of both domestic and international carriers since the crisis began in the first quarter of the year.
However, local airlines are considered particularly vulnerable because they continue to operate in a difficult business environment characterised by high costs and narrow profit margins.
The Airline Operators of Nigeria (AON) has in recent months sought a meeting with President Bola Tinubu to discuss the financial and regulatory difficulties confronting the sector.
Allen Onyema, Chief Executive Officer of Air Peace and Vice President of the AON, said direct presidential intervention could help address some of the problems affecting Nigerian carriers.
Onyema argued that Nigeria's reputation as a difficult environment for airline businesses could change if the factors responsible for the industry's struggles receive the attention of the Federal Government.
Airlines seek tax and charges reform
According to Onyema, one of the major issues requiring attention is the country's system of taxes and aviation-related charges.
He said domestic operators were seeking an opportunity to present their concerns directly to President Tinubu, whom he described as a listening leader.
Onyema maintained that a more balanced approach to taxes and charges could help create a sustainable environment for airlines, aviation agencies and passengers.
He said addressing these structural challenges would help reduce the financial pressure on domestic operators and improve the long-term viability of Nigeria's aviation industry.
Source: Legit.ng
