Airlines Face Shutdown Threat as JetA1 Price Hits N3,000 Per Liter

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 Domestic and foreign airlines operating in Nigeria may begin shutting down services from April 20 following a sharp increase in the price of aviation fuel, JetA1, to about N3,000 per liter.

The Chief Executive of Energy Advisory and former Chairman of Mobil Nigeria, Tunji Oyebanji, disclosed this on Friday, warning that at least one airline may have already suspended operations due to the rising cost.

He attributed the surge in fuel prices to domestic supply challenges and tightening global markets linked to the ongoing Middle East conflict involving Iran and the United States and Israel.

According to him, local airlines are particularly vulnerable as they rely on spot purchases of fuel at airports, unlike international carriers that operate under long-term supply contracts.

Oyebanji explained that the lack of hedging mechanisms and structured agreements exposes domestic operators to price volatility, while financial constraints further worsen the situation as marketers prefer cash payments due to high credit risks.

He also noted that disruptions in Middle Eastern refining output have reduced global availability of JetA1, increasing demand and pushing prices higher.

The energy expert added that a significant portion of locally refined aviation fuel is being exported to meet international demand, raising concerns over domestic supply.

He warned that without urgent intervention, the aviation sector could face a major crisis driven by fuel scarcity and escalating operational costs.

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