Jet Fuel Price Drops to N1,820 as Dangote Offers Direct Airline Supply Amid Aviation Cost Crisis

The Dangote Petroleum Refinery has announced it will begin direct supply of aviation fuel to airlines in Nigeria at N1,820 per litre. The move comes amid rising concerns over soaring operational costs in the aviation sector and growing pressure on the Federal Government to intervene.

A senior official of the refinery confirmed that airlines can now purchase Jet A-1 fuel directly from the $20bn facility in Lekki. According to the source, Dangote currently supplies more than 90 percent of Nigeria’s aviation fuel demand and has already commenced direct deliveries to Ethiopian Airlines.

The official explained that the refinery would no longer subsidise aviation fuel, unlike petrol and diesel, due to global oil market volatility. He also noted that the pricing would be published regularly to promote transparency, adding that current market conditions—driven by geopolitical tensions—have significantly influenced fuel costs.

The development comes as airline operators in Nigeria continue to battle steep increases in jet fuel prices, which reportedly surged from about N900 per litre to as high as N3,500 in recent months. Industry stakeholders have blamed global supply shocks, particularly disruptions linked to tensions in the Middle East, which pushed crude oil prices above $120 per barrel before easing slightly.

Meanwhile, the Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to urgently adopt measures that would reduce airline operating costs and prevent a potential collapse in the sector. While acknowledging that the crisis is global, the chamber warned that Nigeria’s dependence on oil revenue makes the impact more severe and calls for strategic intervention without direct subsidies.

LCCI officials stressed that aviation remains a critical sector that must be protected, noting that rising fuel costs will inevitably affect ticket prices and the wider economy. However, they also cautioned against subsidy policies, arguing that past interventions created inefficiencies and distorted the market.

Industry analysts say Dangote’s direct supply model could reshape Nigeria’s aviation fuel market by improving access and potentially stabilising prices, even as global oil volatility continues to pressure the sector.

source: punch