Jet fuel prices surge in Africa, prompting airline cost concerns and demand consolidation
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The average price of jet fuel in Africa rose to $193.85 per barrel, a 115% increase from a year earlier, while the global average climbed from $171.01 to $187.34 per barrel. Airlink’s CEO said the airline’s jet fuel costs have doubled since February, and FlySafair’s fuel surcharge adjustment on September 22 reflected an average 33% increase over its August 25 increase.
The African Airlines Association, noting that fuel can represent more than 40% of operating costs in some African markets, is consolidating demand across 190 airport locations, including OR Tambo International Airport, to improve negotiated commercial terms. In South Africa, about 60% of fuel supply is imported and 40% is locally produced, and the Department of Mineral and Petroleum Resources has released a draft policy to strengthen reserves of crude oil and refined petroleum products, including jet fuel.