Dangote Petroleum Refinery & Petrochemicals has announced a reduction in the price of aviation fuel, also known as jet A1, to N1,650 per litre from N1,750 per litre.
In a statement on Tuesday, the refinery said the move is
aimed at easing cost pressures on airlines and ensuring an uninterrupted petrol
supply across the country.
The refinery also introduced a 30-day interest-free credit
facility for marketers and airline operators backed by bank guarantees (BG),
while transitioning from a dollar-denominated pricing structure to a
naira-based model.
“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 reads.
“These 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 said its decision is expected to provide relief
to airline operators by lowering aviation fuel procurement costs, improving
operational stability, and supporting efforts to moderate airfares.
On April 14, the Airline Operators of Nigeria (AON)
threatened to suspend operations from April 20 over the rising cost of Jet A1.
The operators said the price of aviation fuel has increased
from N900 per litre as of February 28 to N3,300 per litre — representing a rise
of over 300 percent.
To address the supply and pricing challenges, a technical
committee was set up by the federal government.
The committee recommended the inclusion of aviation fuel in
the naira-for-crude scheme.
The committee also said the indicative end-user price for
aviation fuel should range between N1,760 – N1,988 per litre and N1,809 –
N2,037 per litre in Lagos and Abuja, respectively.
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