Fuel Scarcity Hits Aviation Industry, Causes Price Hike

The current fuel scarcity in the aviation industry has began to affect operations, as Air Peace informed Nigerians that passengers will start experiencing flight delays.

Air Peace in a statement on Wednesday said it was struggling with the scarcity of fuel, known as Jet A1 in the aviation industry, and this would affect passengers’ flights.

“Please anticipate delays on our service as we are grappling with fuel scarcity, which is causing us multiple delays.

“We hope the situation will restore to normal soon. We regret the impact of this on your plans,” Air Peace said via its official Instagram handle.

What you need to know

Two weeks ago, aviation fuel price had hit N800 per litre in northern Nigeria due to the scarcity but sold at N780 at Lagos Airport. The cost of Jet A1 is at a premium when compared to the N650 and N700 per litre it went for in October.

The price in November hovers around the level it was in June when aviation fuel sold for as high as N850 per litre and as low as N800.

While Airline Operators of Nigeria (AON) have blamed the poor state of the refineries in Nigeria for fuel scarcity, oil marketers said domestic airlines are to be blamed as well.

Ripples Nigeria gathered that foreign airlines sign contracts to purchase aviation fuel for longterm, but domestic airlines buy only when needed.

As a result, more fuel is made available to foreign airlines, and domestic airlines have to manage what is left. This is what leads to a price hike in Jet A1 and ticket prices.