Dangote Refinery reduces aviation fuel price to N1,650 per litre

Dangote Petroleum Refinery & Petrochemicals has reduced the price of aviation fuel, also known as jet A1, by N100 to N1,650 per litre from N1,750 per litre, to ease cost pressures on airlines and ensure seamless petrol supply across the country.

In a statement on Tuesday, the refinery introduced a 30-day interest-free credit facility for marketers and airline operators backed by bank guarantees (BG), while transitioning from a dollar-denominated pricing structure to a naira-based model.

“This is in addition to a 30-day interest-free credit facility backed by bank guarantees (BG) for marketers and airline operators and a shift from a dollar-denominated pricing structure to a naira-based model,” the statement reads in part.

According to the statement, interventions come amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.

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“Industry stakeholders have repeatedly warned that escalating Jet A1 prices were placing severe financial strain on operators and threatening the sustainability of flight operations,” the statement read.

The refinery said its decision is expected to provide relief to airline operators by lowering aviation fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares.

Airline Operators of Nigeria (AON) had on April 14 threatened to suspend operations from April 20 over the rising cost of Jet A1.

The operators decried the price of aviation fuel which surged from N900 per litre as of February 28 to a high of N3,300 per litre, representing over 300 percent rise.

However, to address the supply and pricing challenges, a technical committee was set up by the federal government. The committee recommended the inclusion of aviation fuel in the naira-for-crude scheme.