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Published April 26, 2026airlinesaviationenergy

Fuel hike: Aviation stakeholders seek govt help to save 2026 Hajj

He explained that the ongoing conflict involving the United States of America, Israel and Iran has driven up global oil prices, affecting economies and businesses worldwide

Source-backed market reading focused on the local industrial developments, project signals, and operating consequences that are actually worth tracking.

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He explained that the ongoing conflict involving the United States of America, Israel and Iran has driven up global oil prices, affecting economies and businesses worldwide. In Nigeria, the aviation industry has recorded more than a 300 per cent increase in aviation fuel prices, forcing some airlines to cut operations, while others have warned they may suspend services.

With the current fuel price increase on both legs, much of their projected profit margin has already been wiped out. “In some cases, airlines may end up operating at break-even or even at a loss, effectively flying ‘for free’ after covering lease and operational expenses.

Gamawa warned that without immediate intervention from government, regulators, airlines, and marketers, the 2026 Hajj could face record-high fares or even operational disruptions. Related News Fintiri has final say on party tickets- APC senatorial aspirant No new tax on vehicles – NRS Hajj: Kwara sets May 6–8 for intending pilgrims’ departure The statement read, “In simple terms, the soaring cost of Jet A1 on both the Nigerian and Saudi sides is the clearest reason why Hajj fares are expected to rise sharply in 2026.

When Hajj contracts were negotiated and signed, Jet A1 was selling at approximately ₦1,000 per litre in Nigeria, while the average price on the Saudi side was around $0.68 per litre. “Airlines structured their fares, logistics, and operational plans around these benchmarks.

Today, however, the situation has changed dramatically. Across major departure points such as Abuja, Kano, Lagos, Maiduguri, Yola, Sokoto, and Birnin Kebbi, Jet A1 is now being sold for as much as ₦3,000 per litre, representing a 200% increase from the original price used in contract projections.

“This sharp rise has placed airlines in a difficult financial position. If they are forced to absorb the increased fuel cost, many may be operating at a loss. If pilgrims are made to absorb it, Hajj fares will rise sharply. If government intervenes, it may require emergency support mechanisms despite the removal of Hajj subsidies in Nigeria.” Gamawa explained that a single aircraft, which consumes about 70,000 litres of Jet A1 per flight on the Nigeria–Saudi route, would have cost about ₦70 million at the contract benchmark of ₦1,000 per litre, but now costs around ₦175 million at ₦2,500 per litre.

The statement continued, “Additional burden: ₦105 million per flight. At ₦2,800/litre: as in Maiduguri, Sokoto, Yola and Kebbi. Fuel cost = ₦196 million. Additional burden: ₦126 million per flight. This means the financial strain on airlines remains enormous, with serious implications for the overall cost of the 2026 Hajj operation.

“Even if the Nigerian government or local suppliers stabilise Jet A1 prices for the first leg of the Hajj operation from Nigeria to Jeddah or Medina, the second phase, which is the return flight from Jeddah back to Nigeria, remains a major unresolved challenge.

“The price of Jet A1 on the Saudi side has reportedly risen from around $0.68 per litre at the time the Hajj contract was signed to approximately $1.40 per litre now. That is more than a 105% increase in dollar terms. For airlines, this creates a double burden: outbound leg—high fuel cost in Nigeria (if not subsidised or discounted); inbound leg—high fuel cost in Saudi Arabia in U.S.

dollars. “Unlike Nigeria, where intervention may come through policy or local refinery arrangements, airlines lifting pilgrims back home from Jeddah must buy fuel at prevailing international market rates in foreign currency.” He explained that the ongoing conflict involving the United States of America, Israel and Iran has driven up global oil prices, affecting economies and businesses worldwide.

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Fuel hike: Aviation stakeholders seek govt help to save 2026 Hajj

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Document: Punch Nigeria Business RSS · Source: Punch Nigeria Business RSS

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