KEY POINTS
- Dangote Refinery reduced Jet A1 aviation fuel price from N1,750 to N1,650 per litre.
- It introduced credit support and shifted to naira-based pricing to ease airline cost pressures.
- The move is expected to stabilise airline operations amid rising fuel costs and reduced flight activity.
Dangote Petroleum Refinery and Petrochemicals has reduced the price of aviation fuel (Jet A1) from N1,750 to N1,650 per litre in a move designed to ease operational pressures on airline operators and ensure steady fuel supply across Nigeria.
The latest price cut is part of a broader set of interventions by the refinery, which also includes a 30-day interest-free credit facility for marketers and airlines, supported by bank guarantees. In addition, the refinery has transitioned from a dollar-denominated pricing structure to a naira-based model.
The development comes amid ongoing concerns within Nigeria’s aviation sector over rising operational costs, with fuel remaining one of the biggest expenses for airlines.
Domestic airlines have in recent months struggled with soaring fuel prices, which had previously exceeded N2,500 per litre in the market. The situation forced some carriers to reduce flight frequencies, while others warned of possible shutdowns before government-led interventions helped ease tensions.
Although meetings between stakeholders, regulators, and operators were held to address the crisis, airline operators say the impact of those engagements has been limited, with cost pressures still affecting operations.
Dangote Refinery’s Intervention
According to the refinery, the price reduction is aimed at supporting airline operators by lowering fuel procurement costs, improving operational stability, and contributing to more affordable air travel for passengers.
The company stated that the combination of lower pricing, credit support, and currency adjustment is part of its broader strategy to stabilise supply and reduce volatility in the downstream aviation fuel market.
As of the latest update, it remains unclear how marketers will adjust final retail prices to airlines following the new pricing structure.
