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Nigerian Airlines Avoid Shutdown as Jet Fuel Prices Rise

Air travel operations in Nigeria continued on Thursday despite concerns from airline operators over rising aviation fuel costs linked to the global surge in crude oil prices.

Fears of a possible flight suspension were eased after domestic carriers maintained scheduled services, including Air Peace, Max Air, and Rano Air, according to industry tracking data.

The tension in the aviation sector comes amid a sharp increase in global oil prices, which have climbed above $126 per barrel following escalating conflict in the Middle East. The crisis has disrupted global energy flows, especially around key shipping routes such as the Strait of Hormuz, pushing up fuel costs worldwide.

Although Nigeria is a major oil producer, its aviation industry has not been insulated from the global price spike. Jet fuel prices have surged sharply in recent weeks, placing additional financial pressure on airlines already dealing with high operating expenses.

Earlier warnings from the Airline Operators of Nigeria (AON) about a possible shutdown were not followed through, as discussions with government officials reportedly led to promises of support measures, including possible debt relief for carriers.

Attention has also focused on the Dangote Group refinery, which began operations in 2024 and has increased local production of jet fuel. While the facility has helped boost supply, industry experts say pricing remains largely tied to international market rates.

Analysts explain that even with increased domestic refining, airlines still face global benchmark pricing for aviation fuel, which limits how much relief local production can provide.

Fuel costs in Nigeria’s aviation sector have reportedly more than doubled in recent months, though figures remain disputed between airline operators and fuel marketers.

Despite the pressure, airlines have continued operating, but industry players warn that prolonged high fuel prices could threaten stability in the sector if global oil prices remain elevated.