Dangote Petroleum Refinery has dropped the price of jet fuel from N1,750 to N1,650 per litre. The company disclosed this in a statement made available on Monday.
Recall that airlines in Nigeria recently threatened to stop operations due to the rising cost of aviation fuel.
Since the advent of the US-Iran war, there has been a spike in aviation fuel in Nigeria, which the Airline Operators of Nigeria said was not proportionate to the hike internationally.
According to the airlines, fuel prices have skyrocketed from about N900 per litre before the crisis to between N2,700 and N2,900, with some marketers selling as high as N3,300.
But in the statement on Monday, the Dangote refinery said the price drop was in addition to a 30-day interest-free credit facility backed by bank guarantees for marketers and airline operators and a shift from a dollar-denominated pricing structure to a naira-based model.
“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.
“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 read partly.
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It added that the 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’s decision is expected to provide relief to airline operators by lowering fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares.
Punch
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