Dangote Refinery Slashes Jet Fuel Price to N1,650 as Airlines Face Cost Relief

By Endurance Enemona Samuel

LAGOS, Nigeria — The Dangote Petroleum Refinery has reduced the price of aviation fuel (Jet A1) from N1,750 to N1,650 per litre, offering potential relief to airline operators struggling with rising operational costs.

The company confirmed the price adjustment in a statement on Monday, adding that the move is part of broader efforts to stabilize fuel supply and ease pressure on Nigeria’s aviation sector.

Aviation Fuel Costs See First Major Reduction

The latest reduction comes at a time when domestic airlines have repeatedly raised concerns over soaring jet fuel prices, which have significantly increased the cost of flight operations across the country.

According to industry data, aviation fuel prices had previously surged from about N900 per litre before recent global supply disruptions to between N2,700 and N2,900, with some marketers reportedly selling as high as N3,300 per litre.

Airlines Had Warned of Possible Shutdown

Airline operators had earlier warned that escalating fuel costs could force them to suspend operations, citing unsustainable pressure on business viability and rising ticket prices for passengers.

These concerns were largely driven by volatility in global crude oil markets, including geopolitical tensions that disrupted supply chains and increased import costs.

Dangote Refinery Introduces Credit and Naira Pricing Model

In addition to the price cut, the refinery announced a 30-day interest-free credit facility for marketers and airline operators, supported by bank guarantees.

The company also confirmed a shift from dollar-denominated pricing to a naira-based model, a move it says is aimed at reducing exchange rate exposure in domestic fuel transactions.

“Dangote Petroleum Refinery & Petrochemicals has reduced the price of aviation fuel (Jet A1) to N1,650 per litre… This is in addition to a 30-day interest-free credit facility and a shift to a naira-based pricing model,” the statement said.

Industry Pressure Remains High

Despite the reduction, aviation stakeholders say fuel costs remain one of the biggest challenges facing Nigeria’s airline industry, accounting for a significant share of total operating expenses.

Analysts note that sustained high fuel prices have contributed to higher airfares, reduced passenger demand, and increased financial strain on domestic carriers.

Possible Relief for Airfares and Operations

The latest intervention by the refinery is expected to ease procurement costs for airlines and improve operational stability across the aviation sector.

Industry observers also suggest that if the pricing stability is maintained, it could contribute to moderating airfares and improving flight frequency in the coming months. – The Bureau Journal