Dangote Petroleum Refinery has announced a fresh reduction in the price of aviation fuel, cutting the cost of Jet A1 to ₦1,650 per litre from ₦1,750, as part of broader efforts to stabilise Nigeria’s aviation industry and ease mounting financial pressure on domestic airlines.
The refinery said the new price, which takes immediate effect, is designed to provide cost relief to airline operators who have struggled with volatile fuel prices that threatened flight schedules and raised concerns about potential service disruptions across the country.
By Brandspur Banking News Desk, the refinery also unveiled two additional support measures aimed at strengthening airline operations. These include a 30-day interest-free credit facility for marketers and airline operators, subject to bank guarantees, and a shift in aviation fuel sales from dollar-denominated transactions to naira-based pricing.
Industry pressures had intensified in recent months following sharp increases in Jet A1 prices, driven largely by global energy market instability linked to geopolitical tensions in the Middle East. Local operators argued that domestic fuel prices rose far beyond global averages, worsening an already fragile operating environment.
According to industry data, aviation fuel prices surged from about ₦900 per litre before the crisis to between ₦2,700 and ₦2,900 nationwide, with some locations recording prices as high as ₦3,300 per litre. The spike made fuel the single biggest and most unpredictable expense for domestic carriers.
The situation reached a critical point in April when the Airline Operators of Nigeria issued a 48-hour ultimatum, warning that all domestic flights could be grounded if urgent intervention failed to materialise.
Dangote Refinery had previously responded by announcing a gantry price of ₦1,820 per litre in late April, a move seen as an initial attempt to calm the market. The latest reduction to ₦1,650 represents a further step, though prices remain above pre-crisis levels.
The refinery stated that the combined measures are expected to lower fuel procurement costs, improve operational stability for airlines, and help moderate domestic airfares, which have risen steadily in response to higher operating expenses.
While industry stakeholders continue to assess whether the latest intervention will fully resolve tensions between airlines and fuel suppliers, the move is widely viewed as a significant development in efforts to restore confidence and stability in Nigeria’s aviation sector.
