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Despite a sharp drop in global crude oil prices following U.S. President Donald Trump’s announcement of a ceasefire agreement between Israel and Iran on June 24, 2025, the cost of aviation fuel in Nigeria continues to rise sharply, underscoring the complexity of fuel pricing in developing markets.
International crude benchmarks fell below USD 70 per barrel in the aftermath of the ceasefire, reversing the USD 10 per barrel surge triggered by the 12-day Middle East conflict. However, contrary to global trends, the price of Jet A1—aviation turbine fuel—has climbed from ₦900 per litre in May to as high as ₦1,315 per litre by late June across various Nigerian airports.
This upward trend in aviation fuel prices, despite a global oil price dip, is intensifying pressure on Nigeria’s domestic air travel sector. Local airlines are grappling with escalating operational costs, which are inevitably passed on to passengers in the form of higher airfares.
Jet A1 pricing in Nigeria remains highly variable depending on the location of purchase and the volume procured. As of June 19, 2025, the lowest reported price was at Lagos’ Murtala Muhammed Airport at ₦1,227 per litre, while the highest was ₦1,315 per litre at Calabar’s Margaret Ekpo International Airport.
According to Jet-A1-Fuel.com, an international resource for aviation fuel prices, the global price of Jet A1 as of late June stood at:
- USD 83.70 per barrel
- USD 661.20 per metric ton
- USD 1.993 per gallon
- USD 0.53 per litre
Nigeria’s aviation fuel supply chain comprises both local and multinational players, including MRS Oil Nigeria Plc, Total Oil and Gas, Sahara Group, and 11 Plc, among many others.
A breakdown of fuel prices across major Nigerian airports reveals significant disparities:
- Nnamdi Azikiwe International Airport, Abuja: ₦1,254/litre
- Port Harcourt International Airport: ₦1,257/litre
- Kano (MAKIA): ₦1,266/litre
- Enugu (AIIA): ₦1,271/litre
- Owerri (SMICA): ₦1,265/litre
- Maiduguri and Sokoto: ₦1,329/litre
- Asaba and Anambra: ₦1,307/litre
Historical data highlights a consistent upward trajectory. For instance:
- On June 4, major marketers posted prices ranging from ₦992 to ₦1,085 per litre.
- By June 11, prices had increased further, reaching ₦1,290 in Anambra.
- On June 12, Lagos saw Jet A1 sold at ₦1,000, while Calabar hit ₦1,230 per litre.
- On June 13, prices rose again, with Lagos at ₦1,061 and Kano at ₦1,112.
Despite the availability of refining infrastructure within the country, local aviation fuel prices remain volatile. Analysts attribute this to a combination of global market dynamics, foreign exchange fluctuations, and inefficiencies in the domestic supply chain.
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Commenting on the situation, Dr. Allen Onyema, Chairman of Air Peace, emphasised that aviation fuel costs remain a major challenge for Nigerian airlines. He noted that a Boeing 737 requires 3,500 to 4,000 litres of Jet A1 to operate a Lagos-to-Abuja flight—a short route by global standards. At current fuel prices, this translates to a fuel cost of approximately ₦5 million per trip.
With fuel comprising a significant portion of airline operating expenses, the disconnect between global crude price trends and local jet fuel costs continues to strain Nigeria’s aviation sector and passenger affordability.