Dangote Refinery slashes aviation fuel price to ease airline costs
Dangote Petroleum Refinery & Petrochemicals has cut the price of aviation fuel, known as Jet A1, to N1,650 per litre. The move follows warnings from industry stakeholders about the financial pressure caused by rising fuel costs. Airlines now face lower expenses, with the refinery also introducing new payment terms to ease cash flow.
The refinery’s latest decision reduces the price from N1,750 per litre. This adjustment shifts the pricing structure from dollars to naira, simplifying transactions for local buyers. The change aims to stabilise fuel supply and reduce operational costs for airlines.
To further support the sector, Dangote is offering a 30-day interest-free credit facility. Marketers and airline operators can access this option, provided they secure bank guarantees. The refinery’s actions are designed to help moderate airfares, which have climbed due to high fuel expenses. Aviation fuel makes up a large share of airline budgets. Industry experts had previously highlighted how soaring Jet A1 prices strained airline finances. The refinery’s intervention now provides some financial relief, improving stability for operators.
The price reduction and credit facility are set to lower costs for airlines and stabilise fuel supply. Airlines will now pay less for Jet A1, while the naira-based pricing removes currency risks. The refinery’s measures aim to keep airfares more affordable and operations running smoothly.
