Dangote Petroleum Refinery & Petrochemicals has announced a reduction in the price of aviation fuel (Jet A1) from N1,750 to N1,650 per litre. This move aims to alleviate cost pressures on airlines and stabilize the aviation sector.
Price Adjustment Details
In a statement released on Tuesday, the company explained that the price adjustment is part of broader interventions designed to support operators who are struggling with rising operational expenses. Fuel remains a major cost driver in the industry.
New Credit Facility and Pricing Model
The refinery has also introduced a 30-day interest-free credit facility for marketers and airline operators, backed by bank guarantees. Additionally, the pricing structure has shifted from dollar-denominated to a naira-based model. According to the statement, “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.”
Expected Impact on Aviation Sector
The company stated that these measures are designed to improve liquidity within the aviation value chain, ensure a more stable fuel supply, and help moderate airfares. Airfares have remained under pressure due to rising Jet A1 costs. Industry operators have repeatedly raised concerns over volatility in aviation fuel pricing, which earlier surged from about N900 per litre to as high as N3,300, prompting warnings of possible flight disruptions.
Government Response
In response to the crisis, the federal government set up a technical committee, which recommended that aviation fuel be included under the naira-for-crude arrangement. The committee suggested indicative price ranges between N1,760 and N2,037 per litre, depending on location.
