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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.