The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr. Mike Osatuyi, hinted the rising cost of aviation fuel could result in further increase in airline ticket prices.
The global crisis
Aviation fuel increased 304% from N190/ltr in January 2022 to N579-N607 in March 2022. Prices are projected to go as high as N700/ltr within a short time, if the global oil market remains unstable.
With Russia intensifying its fight on Ukraine, the U.S issued an executive order banning import of Russian oil, while the UK aims to phase out import of Russian oil by the end of 2022. Oil prices have jumped more than 30% since February, reaching $139 a barrel at one point this week.
As increase in oil prices looms, Nigerians airlines would invariably purchase aviation fuel at the given rate since there is no subsidy by the Nigerian government on crude oil. This would ultimately result in an increase in flight tickets.