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.
The latest reduction comes in addition to a 30-day interest-free credit facility backed by bank guarantees for marketers and airline operators, as well as the refinery’s transition from a dollar-denominated pricing structure to a naira-based model.
The interventions are expected to provide relief for domestic carriers grappling with rising operating costs, with aviation fuel accounting for a major share of airline expenses.
News reports that the domestic carriers had reduced flight frequencies over the development amidst skyrocketing fuel prices exceeding N2500 per litre.
The Airline Operators of Nigeria (AON) had previously threatened to shut down but the operators shelved the plan following interventions by the Federal Government which facilitated meetings with stakeholders including fuel marketers.
However, operators said the several meetings had not yielded results while some of the airlines had cut their flight frequencies.
To cushion the effect of the Jet fuel price, Dangote slashed the price of Jet A1 yesterday by N100. However, as of yesterday it was not clear how much marketers would sell to airlines.
The statement by the refinery 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.”
News reports that the intervention came amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.
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.”
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