Dangote Petroleum Refinery & Petrochemicals has announced a reduction in the price of jet fuel to N1,650 per litre, from N1,750 per litre.

The refinery said in a statement on Tuesday that the move aims to reduce costs for airlines while also ensuring an uninterrupted supply of fuel across the country.

The refinery also launched a 30-day interest-free credit facility for marketers and aircraft operators backed by bank guarantees (BG), while shifting from a dollar-denominated pricing structure to a naira-based approach.

“This is in addition to a 30-day interest-free credit facility backed by bank guarantees (BG) for marketers and airline operators and a shift from a dollar-denominated pricing structure to a naira-based model,” the statement reads.

“These interventions come amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.

“Industry stakeholders have repeatedly warned that escalating Jet A1 prices were placing severe financial strain on operators and threatening the sustainability of flight operations.”
The refinery said its decision is expected to provide relief to airline operators by lowering aviation fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares.

On April 14, the Airline Operators of Nigeria (AON) threatened to halt operations beginning April 20 because of the rising cost of Jet A1.

The operators said the price of aviation fuel increased from N900 per litre as of February 28 to N3,300 per litre — indicating a surge of almost 300 percent.

To address supply and pricing issues, the federal government formed a technical committee.

The committee proposed that aviation fuel be included in the naira-for-crude scheme.

The committee also stated that the indicative end-user price for aviation fuel should be between N1,760 and N1,988 per litre in Lagos and N1,809 to N2,037 per litre in Abuja.