Dangote Petroleum Refinery and Petrochemicals has reduced the price of aviation fuel, popularly known as Jet A1, from N1,750 to N1,650 per litre in a move expected to ease mounting financial pressure on domestic airlines and stabilise flight operations across Nigeria.
The refinery announced the reduction alongside additional support measures, including a 30-day interest-free credit facility for marketers and airline operators backed by bank guarantees, as well as a transition from dollar-denominated pricing to a naira-based pricing structure.
According to the company, the interventions are aimed at supporting airline operators facing rising operational costs while ensuring uninterrupted aviation fuel supply nationwide.
The latest price cut comes amid growing concerns within Nigeria’s aviation industry over the impact of soaring fuel costs on airline sustainability, flight schedules, and passenger fares. Aviation fuel remains one of the largest operating expenses for airlines, alongside aircraft maintenance, insurance, foreign exchange obligations, and leasing costs.
Domestic carriers have repeatedly warned that the sharp rise in Jet A1 prices was pushing operators deeper into financial distress. At the peak of the recent fuel crisis in April and May, aviation fuel prices reportedly climbed above N2,500 per litre in some locations, forcing several airlines to reduce flight frequencies and review route operations.
The Airline Operators of Nigeria (AON) had earlier threatened to suspend operations nationwide over the escalating cost of fuel and other operational challenges confronting the sector. Although the planned shutdown was later suspended following Federal Government intervention and stakeholder meetings involving fuel marketers and airline operators, airlines maintained that the crisis continued to threaten operational sustainability.
The refinery stated that the reduction in Jet A1 pricing is expected to lower airlines’ fuel procurement costs, improve operational stability, and support efforts to moderate airfare increases affecting passengers across the country.
Passengers had increasingly faced delays, schedule disruptions, and flight cancellations as airlines struggled to cope with rising operating expenses and supply challenges within the aviation fuel market.
The development also aligns with ongoing Federal Government efforts to stabilise the aviation fuel market through the naira-for-crude initiative and related policy measures aimed at reducing pressure on operators and improving fuel availability.
A government technical committee had earlier recommended the inclusion of aviation fuel under the naira-for-crude arrangement as part of broader efforts to address persistent pricing and supply challenges within the sector. The committee projected indicative Jet A1 prices ranging between N1,760 and N1,988 per litre in Lagos, and between N1,809 and N2,037 per litre in Abuja.
Industry stakeholders believe Dangote Refinery’s intervention could provide temporary relief for struggling domestic airlines while helping to restore stability to Nigeria’s aviation sector, which has been grappling with rising costs, foreign exchange volatility, and declining passenger demand.
