Higher Oil Prices Could Ground African Airlines, Raise Food Prices – Dangote

Aliko Dangote, Africa’s richest man, has warned that surging oil prices driven by tensions around the Strait of Hormuz could devastate airlines and worsen food inflation across the continent.

Dangote spoke on Thursday during an interview with Semafor World Economy in Washington DC, where he highlighted the ripple effects of volatile energy prices on key sectors.

His comments come amid disruptions to lStrait of Hormuz, a critical global oil transit route, where instability typically drives up crude prices with far-reaching economic consequences.

The disruption is caused by the war involving Iran, United States and Israel.

“The majority of African airlines won’t be able to survive the current spike in fuel costs,” Dangote said.

According to the chairman of Dangote Group, some Nigerian carriers have already indicated plans to suspend operations if prices are not reduced.

Dangote described the current oil market volatility as unprecedented.

“Between morning and night, you see the oil moving up and down $100. I’ve never seen it like that. Never,” he said.

The billionaire added that the surge in fuel prices poses a significant threat to the aviation sector, which is heavily dependent on stable energy costs.

Beyond aviation, Dangote raised concerns about the impact on agriculture, particularly fertiliser prices, which he said have more than doubled in recent months.

“Two months ago, fertiliser was about $400. Today, it is $850,” he said.

“This farming season, the governments have to actually give subsidies.”

According to Dangote, the sharp increase in input costs could translate into higher food prices, putting additional pressure on already strained households across Africa.

He said a potential agreement between the United States and Iran could ease tensions and stabilise oil markets, but warned that any relief would not be immediate.

The businessman added that even in a best-case scenario, supply chain disruptions would delay a return to normalcy.

Dangote said in “another two, three months before we go back to normal”.

On April 16, Fatih Birol, head of the International Energy Agency (IEA), warned that Europe may have just six weeks of jet fuel left as the airline industry grapples with supply disruptions linked to the Middle East conflict.