Nigerian Carriers Squeezed by Global Fuel Scarcity, High Fares

Nigerian carriers are grappling with an unprecedented crisis as global aviation fuel, Jet A1, becomes scarce and exorbitantly priced, largely due to disruptions stemming from the Iran war. This international turmoil has sent shockwaves through the aviation sector worldwide, forcing major airlines to scale back operations and reconsider their routes.

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The prices of the product have a base of N2, 400 per litre and this can increase, depending on the airport and the state.

Domestically, the situation is dire. While the Dangote Refinery offers a lifeline by ensuring some supply of aviation fuel, the cost has become astronomical. Prices have surged past N2,400 per liter, a steep increase from previous rates. This dramatic rise in operational costs has compelled Nigerian airlines to pass on the burden to passengers through significantly increased airfares, a move that inevitably impacts travel demand and accessibility.

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Numerous international airlines, including major carriers like British Airways, Lufthansa, Emirates, and Singapore Airlines, are cutting flights and capacity, particularly to the Middle East due to soaring fuel prices.

The global repercussions are equally alarming. Major international airlines, including British Airways, Lufthansa, and Emirates, are drastically reducing flights and capacity, with a notable focus on cutting services to the Middle East. Budget carriers like Ryanair and Volotea are also culling routes, contributing to a global reduction of approximately 6,500 routes between 2024 and 2025. The conflict in the Middle East and the subsequent spike in jet fuel prices are disproportionately affecting low-cost carriers, leading to the suspension of flights to key destinations like Dubai, Abu Dhabi, and Tel Aviv.

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budget carriers such as Ryanair, Transavia, and Volotea are also reducing routes, as 6,500 routes were discontinued globally between 2024 and 2025.

Reports from sources like Reuters and Investing.com paint a grim picture, likening the current challenge to the toughest period since the COVID-19 pandemic. Jet fuel prices have more than doubled, driven by supply constraints around the Strait of Hormuz. This has created a severe global shortage, hitting airlines the hardest. Even if the conflict resolves, the normalization of crude refining and petroleum product distribution is expected to take months, suggesting that the current difficult conditions are likely to persist in the near term. The industry faces a long road to recovery, with airlines resorting to raising fares and grounding flights to mitigate the fallout.

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European airlines are facing their biggest challenge ​since the COVID-19 pandemic as the Iran war pushes up jet fuel prices and buffets travel through the Middle East, casting a shadow ‌over the summer holiday season.