Airlines Face Fresh Turbulence As Aviation Fuel Crisis Deepens
Nigeria’s Aviation Sector Faces Renewed Fuel Challenge
NIGERIA’S aviation industry is confronting a growing operational challenge as the rising cost of Jet A-1 aviation fuel threatens airline sustainability and flight operations across the country.
Industry stakeholders have raised concerns over the widening gap between local aviation fuel prices and international benchmarks, warning that the situation could further increase operating costs for airlines and lead to disruptions in flight services.
Marketers Raise Alarm Over Pricing Gap
According to industry sources, aviation fuel supplied from the Dangote Refinery is currently being sold at prices significantly higher than globally recognized benchmarks.
Marketers estimate that while the internationally referenced acquisition cost stands at approximately ₦1,385 per litre, local refinery prices have reached about ₦1,650 per litre, creating a gap of roughly ₦265 per litre.
The disparity, stakeholders argue, has become increasingly difficult for marketers and airline operators to absorb.
Some fuel suppliers have reportedly written to airline operators to explain the pricing challenges, while foreign airlines have been advised to consider alternative fueling arrangements before operating into Nigeria.
Airlines Under Pressure
Aviation experts note that fuel remains one of the largest components of airline operating expenses, accounting for nearly half of total operational costs.
The persistent increase in fuel prices has forced airlines to adjust fares upward, placing additional financial pressure on passengers and businesses that depend on air travel.
Industry observers warn that if the situation continues, domestic carriers operating on already thin profit margins could face greater financial strain, potentially affecting route viability and service frequency.
Calls for Structural Reform
The Aviation Safety Roundtable Initiative (ASRTI) has criticized existing intervention measures and called for deeper reforms aimed at stabilizing fuel supply and pricing.
The group argued that government support initiatives have not translated into lower ticket prices or meaningful relief for airlines.
Instead, ASRTI proposed a “Fuel-for-Stability Programme” that would allocate crude oil directly to local refiners, with the objective of reducing production costs and ensuring more predictable aviation fuel prices.
Foreign Airlines Review Fuel Strategies
The pricing challenge is also affecting international carriers.
Industry insiders say several foreign airlines have adjusted operational strategies to reduce fuel purchases in Nigeria. Some have reportedly increased fuel tankering from foreign airports or sourced fuel from neighboring countries where prices are more competitive.
Stakeholders warn that such developments could diminish Nigeria’s attractiveness as a regional aviation hub if cost pressures remain unresolved.
Search for Long-Term Solutions
Experts believe that sustainable reform of the aviation fuel market is essential to improving affordability and strengthening Nigeria’s aviation sector.
They point to countries such as India, Brazil and Turkey, where policy reforms and stable fuel supply systems have helped lower costs, increase passenger traffic and stimulate industry growth.
With demand for air travel expected to continue rising, stakeholders are urging regulators, refiners and government agencies to work together on solutions that balance refinery economics with airline viability and consumer affordability.
