Airlines Avoid Shutdown Despite Soaring Jet Fuel Costs Amid Global Oil Spike

Nigerian airlines maintained flight operations yesterday, stepping back from a threatened shutdown over escalating jet fuel prices driven by global oil market disruptions.

The near-strike is the second to be called off within two weeks.

Government engagement with airline operators has already led to a pledge of debt relief aimed at easing financial pressures in the sector.

Crude oil prices have jumped sharply since the United States and Israel launched attacks on Iran, prompting Tehran to close the Strait of Hormuz. Prices rose above $126 per barrel yesterday — the highest level recorded since 2022.

The ripple effects are already visible internationally, with some European airlines reducing flights due to higher fuel costs and fears of supply constraints.

Nigeria has not escaped the surge, even as the Dangote refinery ramps up jet fuel production, according to Kpler data reviewed by AFP.

Despite warnings from the Airline Operators of Nigeria (AON) that services could be halted, airlines such as Air Peace, Max Air, and Rano Air continued operating, according to flight tracking information.

The AON did not immediately comment on the situation.

Air travel remains a crucial option in Nigeria, where security challenges and kidnapping threats have made road travel increasingly risky for many citizens.

The Dangote refinery — owned by billionaire Aliko Dangote — commenced operations in 2024, helping reduce the country’s long-standing reliance on imported refined products after years of underperforming state refineries.

In April 2026, the refinery recorded average jet fuel shipments of 154,000 barrels per day — its highest output so far — with about half exported outside Africa, consistent with trends seen before the Iran crisis.

Early estimates indicate a slight increase in domestic allocation, as exports to other African markets have declined marginally.

However, because Dangote processes both domestic and imported crude, it remains influenced by international price movements.

Jide Pratt of Tradegrid suggested that local price reductions are possible through blending strategies.

“I will assume that the priority would be to blend locally, so that there’s a price reduction, so that things like freight and international Platts (benchmark) prices don’t affect that,” he said.

He added:

“But they’re pricing internationally.”

Clement Isong, CEO of the Major Energies Marketers Association of Nigeria, emphasized that global oil dynamics leave little room for isolation.

“Whether they’re buying the light sweet crude from Nigeria or they’re importing their crude, the crude oil price has gone up worldwide,” he told AFP.

The Dangote refinery declined to comment.

Separately, the Nigerian Midstream and Downstream Petroleum Regulatory Authority refuted claims that it intends to impose price controls on jet fuel.

While airline operators say prices have surged to N3,300 per litre, marketers and analysts contest this figure, placing it closer to N2,000 per litre.

Africans Angle News