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Dangote Refinery cuts aviation fuel price to N1,650 per litre

Dangote Petroleum Refinery & Petrochemicals has cut down the price of aviation fuel (Jet A1) from N1,750 to N1,650 per litre in a move aimed at easing operational costs for airlines and improving fuel supply stability across the country.

The refinery also introduced a 30-day interest-free credit facility for marketers and airline operators backed by bank guarantees, alongside a transition from dollar-based pricing to a naira-denominated payment structure.

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Key Highlights:

  • Dangote Refinery reduced aviation fuel (Jet A1) price from N1,750 to N1,650 per litre.
  • It introduced a 30-day interest-free credit facility for airlines and fuel marketers.
  • The refinery also shifted from dollar-based to naira-denominated payments.
  • The move aims to reduce operating costs for airlines in Nigeria.
  • Industry stakeholders expect potential easing of airfares and improved fuel access.

 

The latest intervention comes amid mounting concerns within Nigeria’s aviation sector over the rising cost of Jet A1, which operators say accounts for a significant share of airline operating expenses.

Domestic airlines have repeatedly warned that the high cost of aviation fuel has continued to increase financial pressure on operators and threaten the sustainability of flight operations nationwide.

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Industry stakeholders believe the reduction in fuel prices could help lower procurement costs for airlines, improve operational efficiency, and support efforts to stabilise or reduce airfares for passengers.

The refinery’s new pricing structure is also expected to improve access to aviation fuel and reduce the foreign exchange burden previously associated with dollar-denominated transactions in the sector.

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