Nigeria's jet fuel conundrum: Scarcity at home, abundance abroad
Nigeria is fast becoming Europe's biggest jet fuel supplier, as it continues to help ease ongoing shortages abroad. Meanwhile at home, the West African country’s own airlines are struggling to keep their tanks full.
Nigeria has become Europe's top source of jet fuel, surpassing the United States. The Dangote refinery, owned by Africa's wealthiest individual, Aliko Dangote, situated outside Lagos, has become crucial due to disruptions in Middle Eastern supplies following the Iran conflict. In previous summer months, most supplies originated from the Middle East, but after the Strait of Hormuz closure, Europe needed roughly 700,000 barrels per day, as reported by global trade intelligence firm Kpler.
Concerns arose in April when International Energy Agency head Fatih Birol warned of possibly only six weeks of jet fuel remaining in Europe. To address the crisis, four Italian airports temporarily restricted jet fuel usage, prioritizing medical and long-haul flights. While the Dangote refinery produces about 24 million liters daily, shipping most to Europe, domestic airlines struggle with high prices and market competition.
Domestic operators owe approximately 60 billion Naira to local banks, leading to route cuts and ticket price increases, causing passenger dissatisfaction. Jet fuel prices have plummeted to around 1,600 Naira per liter, down from about 900 Naira before the Iran war. The issue lies not just in jet fuel supply but in the transportation costs from the refinery to the airports, with additional fees for storage, shipping, and middlemen.
Analysts suggest reserving a portion of fuel for Nigerian airlines to cut out the middlemen and stabilize prices around 1,200 Naira per liter.
Written by urgent.news from DW News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
