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Jet A1 Fuel Prices Rose by 270% in Nigeria During Strait of Hormuz Crisis, Says Iyayi
The global fuel market may have been hit hard by the Strait of Hormuz crisis, but Nigeria’s aviation industry appears to have felt the impact far more severely, according to Capt. Rowland Iyayi, a member of the Board of Trustees of the Airline Operators of Nigeria.
Iyayi said the price of Jet A1 aviation fuel rose by between 60 and 80 per cent globally during the crisis, while the increase in Nigeria was significantly higher, reaching about 270 per cent.
He explained that the sharp rise has placed enormous pressure on airlines, considering that fuel accounts for roughly 40 per cent of an airline’s operating costs.
According to Iyayi, Nigerian airlines have been dealing with the burden for months, with the situation forcing operators to devote a substantial portion of their ticket revenue simply to keeping their aircraft in the air.
“Fuel constitutes 40% of airline operating costs; airlines are actually selling tickets just to pay for fuel, and that has been ongoing since March in Nigeria,” Iyayi said.
The development has raised fresh concerns about the sustainability of airline operations in Nigeria, where rising aviation fuel costs have repeatedly translated into higher ticket prices and increased pressure on both operators and passengers.
For airlines already battling high operating expenses, foreign exchange challenges, maintenance costs and other industry-related difficulties, the steep rise in Jet A1 prices has added another layer of pressure.
Iyayi’s comments also highlight the wider impact of global geopolitical developments on Nigeria’s aviation sector. The Strait of Hormuz is a major route for global energy shipments, meaning disruptions around the waterway can quickly affect international fuel markets and, ultimately, the cost of air travel.
With fuel prices remaining a major concern for operators, the aviation industry continues to face questions over how airlines can remain financially viable without passing the full burden of rising costs on to passengers.
