Nigeria’s aviation industry has received a major boost as Dangote Petroleum Refinery & Petrochemicals announced a reduction in the price of Jet A1 aviation fuel from N1,750 to N1,650 per litre. The price cut is expected to ease the financial burden on domestic airlines that have been grappling with soaring operating costs and rising fuel expenses.
Beyond the price reduction, the refinery introduced additional support measures designed to strengthen the sector. These include a 30-day interest-free credit facility for marketers and airline operators backed by bank guarantees, as well as a transition from dollar-denominated fuel pricing to a naira-based payment structure. The move is aimed at improving access to aviation fuel while reducing foreign exchange-related pressures on operators.
Aviation fuel remains one of the largest cost components for airlines, accounting for a significant share of operational expenditure. Industry stakeholders have repeatedly raised concerns over the impact of rising Jet A1 prices, warning that sustained increases could threaten profitability, disrupt flight schedules, and place additional strain on the sector’s recovery efforts.
The latest intervention by Dangote Refinery is expected to provide much-needed relief to carriers by lowering fuel procurement costs and enhancing operational efficiency. Industry analysts believe the reduction could help airlines better manage expenses, maintain stable operations, and potentially slow the pace of airfare increases for passengers.
With Nigeria’s aviation sector seeking sustainable solutions to rising costs, the refinery’s decision underscores its growing role in supporting key industries through improved fuel availability and competitive pricing. Stakeholders say the move could contribute to greater stability in the aviation market while strengthening confidence among operators and travelers alike.
source: Nairametrics