The aviation fuel, Jet A1, has experienced a hike in price as it now sells for over N400 per litre, which is the highest price in the last six years.
Due to this sudden development, there is likely to be an increase in airfares as reports have shown that most airlines have concluded plans to increase the base fare.
Reports have shown that as of Wednesday, a litre of Jet fuel was sold at N375 in Lagos. N395 in Abuja, Enugu, Port Harcourt and Uyo and N407 in Kano.
As of November 2021, the same Jet fuel was sold between N310 and N330 depending on the location, amidst complaints from operators. Experts had, however, predicted the jet fuel reaching an all-time high of N400, which came to pass this week.
The high cost of the Jet fuel narrowed down to the exchange rate, as a dollar is now exchanged for 415 at the interbank rate and N570 at the parallel market as the Jet A1 is an imported product in the country.
The Chairman, United Nigeria Airlines, Chief Obiora Okonkwo, said when the airline had its inaugural flight in 2021, fuel was sold at N190 per litre on a one-hour ticket of N23,000.
He further stated that the high cost of fuel is as a result of the foreign exchange scarcity by marketers who import the product into the country.
