Nigerian Airlines Turn to Dangote Refinery for Local Jet Fuel as Import Costs Soar
Nigerian airline operators have confirmed that, they are sourcing Jet A1 fuel from Dangote’s refinery to curb the high cost of imported fuel. According to the Airline Operators of Nigeria (AON), the supply has been ongoing for months. However, the cost of fuel still varies across different airports due to location and other logistical factors. This move comes amid growing concerns about the financial strain caused by the fluctuating cost of imported aviation fuel.
An industry insider revealed that the decision to turn to local refineries, including Dangote’s, was driven by the need to reduce operational costs. Talks with Dangote began due to the continued rise in imported Jet A1 prices, but discussions have faced delays due to unresolved pricing and contractual issues between Dangote and the Nigerian National Petroleum Corporation (NNPC). Despite these challenges, local sourcing remains a more viable option, and the industry is hopeful that it will ultimately lower fuel costs once agreements are finalized.
The Nigerian government recently approved Dangote Refinery as the sole supplier of jet fuel to the nation’s airline operators, following a “naira-for-crude” agreement. This development is expected to streamline the supply chain and stabilize prices in the long run, as local refineries can potentially provide a more consistent and affordable fuel supply. However, the deal is still in its early stages, and many details regarding pricing and fuel quantities remain to be finalized.
