(Bloomberg) — Nigeria will become the first nation to ground flights on Monday as surging prices for aviation fuel make business unprofitable.
Airline operators “will discontinue operations nationwide” until further notice, their union said in a statement. It’s the latest sign of the widespread impact that Russia’s invasion of Ukraine is having.
The war has caused massive disruption to energy markets with Russian feedstocks used to produce jet fuel and diesel becoming untouchable for many parts of the world. China has also cut its oil product export quota, limiting supplies. The loss of 3.2 million barrels a day of refining capacity in the pandemic years also doesn’t help.
Nigeria’s 23 airlines say they have been “subsidizing” flights for the past four months and can no longer absorb the costs after the price of aviation fuel more than tripled to 700 naira ($1.68) per liter.
www.bnnbloomberg.ca/nigeria-is-first-nation-to-ground-flights-as-fuel-costs-soar-1.1762458