Jet Fuel Surges 100% to N2,700, Airlines Warn of 25% Fare Hike

Aviation fuel prices have surged from N900–N995 to between N2,500 and N2,700 per litre, driven by the Middle East crisis that has pushed crude oil prices to about $112 per barrel. The spike has placed immense pressure on domestic airlines, with jet fuel now accounting for up to 45% of operational costs—up from 30–35% previously. Operators warn that airfares may rise by 20–25% in the coming days, and if fuel hits N3,000 per litre, some airlines may be forced to suspend operations. Industry players are calling for government engagement on pricing sustainability.

Key Points:

A 100% surge in jet fuel prices threatens to double airfares, making air travel increasingly unaffordable for Nigerians.
Airlines are currently absorbing costs by maintaining fares around N195,000, but operators say this model is unsustainable.
If fuel hits N3,000 per litre, some carriers may suspend operations, reducing capacity and pushing fares even higher.
The crisis follows global crude price volatility triggered by the escalating US-Israel-Iran conflict.
Industry experts project a 20–25% fare increase in the coming days, with further hikes possible if the fuel price trend continues.

As airlines struggle to stay afloat amid spiraling fuel costs, passengers face the prospect of significantly higher fares, with some operators warning that the current pricing model cannot be sustained for long.

Sources: The Punch