Relief may be on the horizon for Nigerian airline operators after the Dangote Petroleum Refinery announced a reduction in the price of aviation fuel, cutting the cost of Jet A1 from N1,750 to N1,650 per litre.
The development comes as domestic airlines continue to grapple with soaring operational expenses driven largely by the sharp increase in aviation fuel prices in recent weeks.
In a statement released on Monday, the refinery said the decision was part of broader measures aimed at easing the financial burden on airline operators while ensuring stable fuel supply across the country.
“Dangote Petroleum Refinery & Petrochemicals has reduced the price of aviation fuel (Jet A1) to N1,650 per litre from N1,750 per litre in a move aimed at easing cost pressures on airlines and ensuring uninterrupted fuel supply across the country,” the company stated.
The refinery added that the intervention goes beyond the price cut, revealing that it had also introduced a 30-day interest-free credit facility backed by bank guarantees for marketers and airline operators.
According to the company, it has also transitioned from a dollar-denominated pricing structure to a naira-based model, a move industry observers believe could help shield local operators from the volatility of foreign exchange fluctuations.
The announcement follows mounting concerns within the aviation industry over the escalating cost of Jet A1 fuel, which operators say has become unsustainable.
Airline operators had recently warned that rising fuel costs could force some carriers to suspend operations if urgent measures were not taken. The Airline Operators of Nigeria (AON) noted that the increase in local fuel prices appeared disproportionate compared to movements in the international market.
Before tensions linked to the US-Iran conflict intensified, aviation fuel reportedly sold for around N900 per litre. However, prices later surged to between N2,700 and N2,900 per litre, with some marketers allegedly charging as high as N3,300.
Industry stakeholders have repeatedly raised concerns that aviation fuel now accounts for the largest share of airline operating costs, putting severe pressure on profitability and threatening the sustainability of domestic flight operations.
Experts say the latest price reduction by the Dangote refinery could provide temporary relief for operators by lowering fuel procurement expenses, improving operational stability, and potentially slowing the rise in airfares faced by passengers.
The intervention is also being viewed as another major step in Dangote refinery’s growing influence on Nigeria’s downstream petroleum market, especially as the country continues efforts to reduce dependence on imported refined products.
Although airline operators are expected to welcome the reduction, analysts say sustained stability in fuel pricing and foreign exchange management will remain critical to the long-term survival of Nigeria’s aviation sector.