Dangote Cuts Jet A1 Fuel Price by ₦100 to ₦1,650/Liter
Dangote Refinery reduced aviation fuel (Jet A1) price to ₦1,650 per liter from ₦1,750, effective this week. The move aims to ease cost pressures on airlines and ensure uninterrupted fuel supply across Nigeria.
In addition to the price reduction, the refinery introduced a 30-day interest-free credit facility backed by bank guarantees for marketers and airline operators. They also shifted from dollar-denominated pricing to a naira-based model, addressing one of the major cost drivers for domestic carriers.
Jet A1 accounts for a significant portion of airline expenses, with recent increases placing severe financial strain on operators and threatening flight operations sustainability. The refinery's decision is expected to provide relief by lowering fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares for passengers. With airlines still recovering from pandemic losses and facing rising operational costs, will these fuel price reductions translate into lower ticket prices for travelers, or will the savings be used to strengthen airlines' financial positions?