Olushola Omogbehin
Dangote Refinery has jacked down the price of aviation fuel (Jet A1) from N1,750 per liter to N1,650 per liter from in a move aimed at easing cost pressures on airlines and ensuring uninterrupted fuel supply across the country.
The latest reduction comes in addition to a 30-day interest-free credit facility supported by bank guarantees for marketers and airline operators, in addition to refinery’s transition from a dollar-denominated pricing structure to a naira-based model.
The price adjustment which was contained in a statement on Monday said:
“Dangote Petroleum Refinery & Petrochemicals has reduced the price of aviation fuel (Jet A1) to N1,650 per litre from N1,750 per litre, in a move aimed at easing cost pressures on airlines and ensuring uninterrupted fuel supply across the country.
“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.”
This reduction was initiated amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.
Industry stakeholders have repeatedly warned that escalating Jet A1 prices are placing severe financial strain on operators and threatening the sustainability of flight operations.
The refinery explained that its decision “is expected to provide relief to airline operators by lowering fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares.”
