Dangote refinery cuts jet fuel price to N1,650 per litre

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 cost pressures on airlines.

The company disclosed the development in a statement on Monday, noting that the price cut comes amid rising concerns over the high cost of aviation fuel in Nigeria.

Airline operators had recently warned of a possible shutdown of operations due to soaring fuel prices, which surged following tensions linked to the United States-Iran conflict. The Airline Operators of Nigeria said local price increases were disproportionate compared to global trends.

According to industry estimates, aviation fuel prices rose from about N900 per litre before the crisis to between N2,700 and N2,900, with some marketers reportedly selling as high as N3,300 per litre.

The refinery stated that the reduction is part of broader interventions, including a 30-day interest-free credit facility backed by bank guarantees for marketers and airline operators. It also announced a shift from a dollar-based pricing model to a naira-denominated structure.

The company said the measures are designed to support domestic carriers grappling with high operating costs, as aviation fuel accounts for a significant share of airline expenses.

Industry stakeholders have repeatedly warned that the rising cost of Jet A1 poses a serious threat to the sustainability of airline operations.

The refinery expressed optimism that the new pricing and support initiatives would reduce procurement costs for airlines, enhance operational stability, and contribute to moderating airfares.