Nigerian Domestic Airfares Could Reach N200,000 as Jet Fuel Prices Hit N1,600/Litre
The price of aviation fuel, known as Jet A1, has skyrocketed to between N1,500 and N1,600 per litre in Nigeria, marking a dramatic increase of over 53% from previous levels. This surge is directly linked to escalating tensions in the Middle East involving the United States, Israel, and Iran, which have driven global crude oil prices above $100 per barrel. The ripple effects are now threatening to push domestic flight ticket prices from an average of N150,000 to a staggering range of N185,000 to N200,000 for one-way trips.
Fuel Costs Become Crippling Burden for Airlines
Industry experts reveal that aviation fuel, traditionally accounting for 30-35% of airline operating costs, has now ballooned to represent 40-45% of total expenses. This significant financial pressure is forcing carriers to consider immediate fare adjustments to remain viable. The instability in fuel pricing has been particularly acute since the onset of the Middle East crisis on February 28, 2025, with prices fluctuating multiple times within short periods.
Aviation expert Samuel Caulcrick emphasized that with fuel now consuming nearly half of operational budgets, airlines have little choice but to pass these costs onto consumers through higher ticket prices. Another specialist, Charles Amokwu, illustrated the scale of the issue by noting that a Boeing 737 aircraft requires 3,500 to 4,000 litres of fuel for a Lagos-Abuja flight, translating to a fueling cost of approximately N6 million for a journey lasting less than one hour.
Regional Price Variations and Supply Chain
Jet A1 prices exhibit notable disparities across Nigerian airports, further complicating airline operations. At Murtala Muhammed Airport in Lagos, the fuel sells for about N1,500 per litre, while at Nnamdi Azikiwe International Airport in Abuja, it reaches N1,600 per litre. In other major hubs such as Calabar, Port Harcourt, and Kano, prices can soar to N1,700 per litre or even higher.
The aviation fuel supply network extends to numerous airports nationwide, including Enugu, Owerri, Maiduguri, Sokoto, Asaba, and Anambra. Key suppliers driving this market include MRS Oil Nigeria Plc, MAT Oil and Gas, CIT Oil and Gas, NNP Oil and Gas, Standard Oil and Gas, and AGB Oil and Gas. These companies play a critical role in determining availability and pricing across different regions.
Broader Economic Context and Future Outlook
This aviation crisis occurs against a backdrop of broader economic challenges in Nigeria's energy sector. Recent developments, such as the NNPC increasing petrol prices by N118 and Dangote Refinery adjusting fuel rates multiple times, highlight a volatile landscape for all transportation fuels. The direct correlation between global oil prices and local aviation costs underscores Nigeria's vulnerability to international geopolitical events.
As airlines grapple with these unprecedented cost pressures, passengers are likely to face significantly higher travel expenses in the coming months. Industry analysts warn that without stabilization in the Middle East or strategic interventions, the affordability of air travel in Nigeria could be severely compromised, potentially impacting tourism, business mobility, and overall economic connectivity.
