African nations hit hard by fuel markets turbulence

Turbulence in the fuel markets caused by the US-Israel war on Iran is hitting African airlines hard. Jet fuel prices are soaring worldwide but Africa is particularly exposed, reports africanews. About 70% of its jet fuel and kerosene imports come through the Strait of Hormuz – the vital maritime corridor currently under blockade by Iran. Since the start of the conflict last month, shipping though the Strait has almost stopped, removing about a fifth of global oil supplies from the market. For African airlines, jet fuel accounts between 30 to 40% of operating costs – a far greater percentage than many other carriers. For low-cost African airlines, fuel can account for up to 55% of operating expenses, increasing the financial strain of the current crisis. The rapidly changing cost of fuel makes route planning and pricing unpredictable. Operators can’t quote flights too far in advance, at the risk of losing money if fuel prices spike.

Full africanews report