AVATION FUEL SET TO AFFECT TICKET PRICES
Written by Adeola Ibrahim on April 22, 2024
Considering the sustained increase in the price of jet fuel over the last four years, indigenous carriers were forced to enhance operations by raising ticket prices.
However, due to the imminent supply of aviation fuel, otherwise known as Jet A1, by Dangote Refinery, there are strong indications that domestic airlines operators may reduce ticket prices for passengers.
The 12 scheduled airlines, including Arik Air, ValueJet, Air Peace, Aero Contractors, Max Air, Dana Air, Ibom Air, Green Africa, Overland, Rano Air, Azman, and United Nigeria Airlines, on February 20, 2022, jointly agreed to increase airfares by 100 per cent to meet up with operational costs.
Newsmen gathered that with operators looking at a possible crash in the price of Jet A1, passengers might experience a drop in airfares.
The Managing Director of Aero Contractors, Captain Ado Sanusi, told newsmen that although the price of Jet A1 had been steady, airlines would appreciate a price decrease.
Sanusi said that operators make their projections due to the steadiness of jet fuel prices. The current price of jet fuel has been between an average price of N1,200 and N1,400 per litre.
He added that it depends on what price Dangote refinery sells Jet A1. He also stated that if Port Harcourt, Warri and Dangote refineries provide enough jet A1 for some time and there are steady prices, it will definitely have an impact on ticket price. He noted that, that won’t be possible in a few days. It has to be consistent for a few weeks and even months.
