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    Tuesday, July 9, 2024

    Dangote. Commits to Continuous Supply of Jet A1 Fuel at Affordable Price of N980 per Liter

    Dangote Industries Limited, a leading provider of petroleum products in Nigeria, is committed to ensuring a consistent supply of Jet A1 fuel to the aviation industry at a competitive price of N980 per liter..

    The Airline Operators of Nigeria, representing domestic airlines, are exploring a potential agreement with the management of Dangote Petrochemical Refinery to procure JetA1 fuel at a favorable price.

    Consequently, certain local operators have convened with refinery officials to formalize an accord, enabling them to procure aviation fuel at a revised price of N980 per liter. Presently, the cost of aviation fuel fluctuates between N1100 and N1250 per liter, subject to the specific airport and prevailing exchange rate.

    As a senior executive at AON and the Chief Executive Officer of Top Brass Aviation Limited, Roland Iyayi, shared additional information regarding the industry’s collaboration with the Dangote Group.

    “The Airline Operators of Nigeria held a two to three-hour meeting approximately one month ago with the entire Dangote refinery management team, including Dangote himself, he said.

    “The meeting concluded that Dangote would directly provide fuel to local operators at approximately N980 per liter. The critical next step is to ensure the participation of local distributors in this arrangement. It appears that the AON has yet to identify the specific distributors who will be involved in this initiative.”

    Additionally, United Nigeria Airlines’ Chief Operating Officer, Osita Okonkwo, mentioned that the commencement of operations at the Dangote refinery has contributed to a decrease in the cost of Jet A1.

    “Our company does not engage in direct importation; instead, we rely on our suppliers to import and distribute products to us. While they have been steadily increasing their production output, I believe there is still room for further optimization and capacity expansion.

    “The Dangote Group has commenced production, and our team visited the facility to observe their operations. However, it appears that they have not yet achieved their full production capacity. The refinery’s operations have resulted in a decrease in prices, which is a noteworthy development. It is intriguing to witness the impact that Dangote has made in the industry, particularly in terms of price reduction.

    Okonkwo emphasized the significant role of MRS filling stations in stabilizing fuel prices within the Lagos and Abuja regions. He noted that MRS has maintained a consistent pricing strategy across these cities, contributing to price stability. Additionally, the involvement of NNPC has further supported this effort. While the initial fuel price was set at N1050 per liter, adjustments in the exchange rate have resulted in a slight increase, bringing the current price to approximately N1250 per liter.

    In reference to the matter at hand, the official representative of Dangote Group, Anthony Chiejina, affirmed that the company is actively engaged in the production of aviation fuel and diesel at the newly established refinery.

    “In conjunction with the diesel rollout, we have also been concurrently producing aviation fuel. This is a significant accomplishment for Nigeria, as it underscores the importance of self-sufficiency in production and consumption.

    “Value addition is a crucial aspect of our refinery project. By refining the resources locally, we can ensure the highest quality standards and avoid the import of inferior products. This achievement represents a significant milestone for Nigeria, propelling the country and the continent towards greater economic prosperity.

    In reference to the matter of aviation fuel price reduction, it is anticipated that the cost of aviation fuel will be more economical compared to previous rates,” Chiejina affirmed.

    It has been brought to our attention by local operators that the aviation fuel market is undergoing price fluctuations as a direct result of the Dangote refinery’s operations.

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