The Dangote Petroleum Refinery has reduced the price of aviation fuel (Jet A1) from N1,750 to N1,650 per litre, in a move aimed at easing financial pressure on Nigeria’s airline industry. The company announced the adjustment in a statement released on Monday, noting that the decision is part of broader efforts to stabilise fuel supply and support aviation operations nationwide.
Meanwhile, Nigerian airlines have recently raised concerns over escalating fuel costs, warning that operations could be disrupted if prices remain unstable. They argue that the sharp increase in aviation fuel is not in line with global market trends, especially following geopolitical tensions such as the US-Iran conflict.
Consequently, Jet A1 prices in Nigeria have surged dramatically in recent months, rising from about N900 per litre to between N2,700 and N2,900, with some marketers reportedly selling as high as N3,300 per litre. This spike has significantly increased operational costs for carriers and placed pressure on airfares.
In response, Dangote Refinery not only reduced its price but also introduced a 30-day interest-free credit facility backed by bank guarantees for marketers and airline operators. Additionally, it has transitioned from a dollar-denominated pricing system to a naira-based structure to further ease exchange rate-related burdens.
According to the refinery, these interventions are designed to reduce cost pressures, ensure uninterrupted fuel distribution, and improve operational stability across the aviation sector. Ultimately, industry stakeholders believe the move could help moderate airfares and sustain airline viability in Nigeria’s challenging economic environment.
