Airfares may rise 25% as aviation fuel hits N1,600/litre

NCAA spokesperson, Michael Achimugu, addressing angry passengers at the Abuja airport. Photo: x/Michael Achimugu,

Following the increase in prices in the country, fare prices will soon begin to increase in compliance with market forces.

Aviation fuel has now jumped from N940 and N980 per litre to N1,500 and N1,600 per litre within less than two weeks, indicating about a 63 per cent rise.

Following this trend, operators said they are already monitoring developments as an increase in fare prices is already in the offing.

With this development, there are strong indications that the price of airfares may further rise by about 25 per cent or more in the local market from the current average per ticket.

Aviation fuel remains the single highest component of airline operations, accounting for about 30 to 35 per cent of total operational costs.

But with the current prices of the product, PUNCH Online gathered that the effect of aviation fuel on operations may further rise to between 40 and 45 per cent.

Despite the expected high prices, the price at which airlines will buy aviation fuel will be determined depending on where and the volume the airline is willing to buy at a time.

Airline sources who refused to give their names, as they are not officially permitted to speak on such issues for their airlines, said the price of the product had remained unstable since Saturday, February 28, 2026 till date, changing about five times within the period.

The source said that a litre of aviation fuel goes for N1,500 per litre at the Murtala Muhammed Airport, Lagos; N1,600 per litre at the Nnamdi Azikiwe International Airport, Abuja; and about N1,700 or more at the Margaret Ekpo International Airport, Calabar, Port Harcourt International Airport, Omagwa, and Mallam Aminu Kano International Airport, among other airports in the country.

The development follows a fresh increase in petrol prices after the Dangote Petroleum Refinery raised the gantry price of Premium Motor Spirit to N1,175 per litre, marking the third upward adjustment within a week.

The latest price revision comes hours after PUNCH Online projected that petrol prices could rise for the third time within a week following the temporary suspension of petrol sales at the refinery on Sunday.

The refinery announced the price hike to marketers on Monday, raising the gantry price of Premium Motor Spirit to N1,175 per litre from N995 per litre announced on Friday, representing an increase of N180 or about 18.1 per cent within three days. It also revised the gantry price of Automotive Gas Oil, commonly known as diesel, to N1,620 per litre.

Speaking with our correspondent on Tuesday, the Managing Director of Aerocontractors, Ado Sanusi, confirmed a possible increase in ticket prices, considering the rise in commodity prices, particularly Jet A1.

“Everything has increased, and we are buying in the same percentage that the crude went up.

“So yes, we should expect flight ticket increases just in adherence to the market dictate,” he said.

Also contacted, the spokesperson for United Nigeria Airlines, Chibuike Uloka, said the increment is a reaction to the present market situation in the country.

He said, “Yes, where we are now is a situation, and businesses are reacting, and we are not an exception to those businesses that will react. You know it is a demand and supply situation, what we have now, we are watching, and the reaction won’t just be about us, but everybody buying from the same market.

“Whether we are increasing ticket fares or not, obviously we are watching already, and we would also react very soon, just like others in the same market.”

Industry expert, Samuel Caulcrick, agreed that the current rates would lead to an increase in air tickets.

According to him, the current rates indicate about 45 per cent operational costs for airlines, stressing that fuel remains the highest single component of airline operations.

He said, “Before now, the highest component of airline operation was maintenance, but that has changed with the continuous rise in the prices of Jet A1. In those days when aviation fuel was selling for between $30 and $50 per litre, the maintenance cost was more, but now fueling has taken over.

“If that component goes up, it will definitely affect the prices of every seat. But we should expect the airfares to go up by 20 to 25 per cent in the coming days.”