Dangote refinery reduces jet fuel price to N1,650/litre

The Dangote Petroleum Refinery has reduced the cost of jet fuel from N1,750 to N1,650 per litre. This information was shared in a press release made available to The PUNCH on Monday.

It is important to note that airlines in Nigeria recently warned they might cease operations due to the escalating costs of aviation fuel.

Since the start of the US-Iran conflict, there has been an increase in aviation fuel prices within Nigeria, which the Airline Operators of Nigeria mentioned did not align with the rise seen globally.

The airlines reported that fuel costs had surged from roughly N900 per litre prior to the crisis to between N2,700 and N2,900, with some suppliers charging as much as N3,300.

However, in the announcement made on Monday, the Dangote refinery stated that the price reduction coincided with a 30-day interest-free credit option supported by bank guarantees for airline operators and marketers, and a transition from a pricing structure that relied on dollars to one based on naira.

“Dangote Petroleum Refinery & Petrochemicals has cut the price of aviation fuel (Jet A1) to N1,650 per litre from N1,750 per litre to alleviate financial pressures on airlines and ensure a consistent fuel supply nationwide.

“This measure includes a 30-day interest-free credit option with backing from bank guarantees (BG) for marketers and airline operators and the change from a dollar-based pricing method to one focused on the naira,” part of the statement indicated.

It also mentioned that these initiatives emerge due to rising concerns surrounding the increasing operational costs that domestic carriers are encountering, with aviation fuel contributing significantly to the expenses of airlines.

Industry representatives have frequently cautioned that the rising Jet A1 prices were placing enormous financial burdens on operators, jeopardizing the viability of flight services.

The decision by the refinery is anticipated to bring relief to airline operators by decreasing the costs associated with fuel purchases, enhancing operational reliability, and aiding in efforts to stabilize ticket prices.