Dangote Petroleum Refinery & Petrochemicals has announced a significant reduction in the price of Jet A1 (aviation fuel), slashing it from N1,750 to N1,650 per litre.
The refinery stated that the price cut, which took effect immediately, is aimed at relieving the heavy cost burden on airline operators and helping to stabilise the struggling aviation sector, where fuel remains one of the largest operational expenses.
Additional Support Measures
In a statement released on Tuesday, the company introduced two major relief packages for the industry:
– A 30-day interest-free credit facility for marketers and airline operators, backed by bank guarantees.
– A full transition from dollar-denominated pricing to a naira-based pricing model.
These interventions are designed to enhance liquidity across the aviation value chain, guarantee more stable fuel supply, and ultimately help moderate airfares, which have been under severe pressure due to volatile fuel costs.
Context of the Price Adjustment
Aviation fuel prices had previously skyrocketed from around N900 per litre to as high as N3,300, triggering widespread concern among operators and fears of potential flight disruptions. The sharp increases forced many airlines to review their operations and ticket prices.
In response to the crisis, the Federal Government constituted a technical committee that recommended incorporating aviation fuel under the naira-for-crude arrangement. The committee also proposed indicative price bands between N1,760 and N2,037 per litre, depending on location.
Dangote Refinery’s latest move brings the price of Jet A1 below the lower end of the government’s recommended range, offering substantial relief to operators.
The refinery described the price reduction and credit support as part of its broader commitment to supporting the growth and sustainability of Nigeria’s aviation industry. Industry stakeholders have welcomed the development, describing it as a timely intervention that could help stabilise domestic air travel costs.
