Airlines warn aviation fuel scarcity to disrupt Nigerian flights

Airlines in Africa’s largest economy warned of possible flight disruptions in the coming days because of a scarcity of aviation fuel. 

“Unfortunately the fuel scarcity is starting to seriously impact our operations,” Air Peace, one of Nigeria’s biggest carriers, said in a statement on Wednesday. “We are likely to experience flight disruptions today and in the coming days until the situation is resolved.”

Two other domestic airlines, Dana Air and Ibom Air, issued similar notices. 

Nigeria has experienced fuel shortages since the beginning of February, after the authorities rejected a batch of imported gasoline that contained too much methanol, making it unsuitable for domestic usage.

Importers of aviation fuel have also been unable to obtain foreign exchange to pay for their products, exacerbating the shortages, Roland Iyayi, a former managing director of the Nigerian Airspace Management Agency, said by phone from Lagos, the commercial hub.

The shortage of foreign currency, coupled with rising oil costs, has lifted prices of aviation fuel to as high as 607 naira ($1.45) per liter at some airports in the country, from about 360 naira a liter in December. The Nigerian government doesn’t regulate the price of aviation fuel, like it does for gasoline, allowing importers to sell at market-determined prices.

Airlines doubled ticket prices last month to cover the rising cost of operations. Gasoline shortages are causing an “unnecessary shock” to the Nigerian economy that may lead to a spike in inflation and slower economic growth, Statistician-General Simon Harry warned in February.