By: Reuters

Nigeria’s jet fuel shortage is being driven by disruptions at the Strait of Hormuz that have curtailed global supplies of middle distillates, a fuel marketers’ group said, squeezing airlines already grappling with soaring costs.

Products such as jet fuel and diesel that normally pass through the strategic waterway have become less available worldwide, pushing up prices, the Major Energies Marketers Association of Nigeria (MEMAN) said.

“Because of the challenges at the Strait of Hormuz, the products that normally pass through there, diesel and Jet A1, are not available,” MEMAN Chief Executive Clement Isong told Reuters.

Nigerian airlines over the weekend suspended a planned nationwide shutdown after a government appeal, but warned the pause was temporary ahead of talks scheduled for April 22. The Airline Operators of Nigeria said jet fuel prices have surged 270% since late February, making operations unsustainable.

Isong said rising diesel prices have compounded the problem by lifting transportation costs for jet fuel by about 50%, as supplies are trucked from refineries to airports nationwide.

“If you are transporting your Jet A1 … you take it to the airport by road,” he said, citing deliveries from the Dangote refinery to cities including Abuja, Kano and Port Harcourt.

Global jet fuel prices have jumped following the Iran war, forcing airlines to raise fares and curb growth. African carriers are particularly exposed, as fuel typically accounts for 30% to 40% of operating costs, compared with a global average of 20% to 25%, according to the African Airlines Association.

Isong said discussions with airline operators were ongoing to find temporary solutions while broader supply disruptions persist, adding that strike action was unlikely.

Nigeria’s aviation sector consumed about 2.1 million litres of jet fuel per day last month, regulator data showed. However, the Dangote Petroleum Refinery, Nigeria’s sole domestic jet fuel producer made no deliveries to the local market in March.

(Production: Kazeem Sanni, Abraham Achirga, Angela Ukomadu)