Breaking: Dangote Group Reduces Aviation Fuel Price, Sparks Industry Reactions

Dangote Group’s Petroleum Refinery & Petrochemicals has announced a reduction in the price of aviation fuel, also known as Jet A1, from ₦1,750 to ₦1,650 per litre.....KINDLY READ THE FULL STORY HERE▶

The company explained that the ₦100 price cut is aimed at easing financial pressure on airline operators while ensuring a stable and reliable supply of aviation fuel across Nigeria.

The development was contained in a statement released on Tuesday by the refinery’s media team.

According to the statement, the revised pricing is expected to lower fuel procurement costs for airlines at a time when domestic carriers are grappling with rising operational expenses.

The refinery noted that aviation fuel constitutes a major share of airline operating costs, stressing that price stability is essential for sustainable flight operations.

It added that the intervention is intended to support both airlines and fuel marketers by improving access to Jet A1 and cushioning the impact of price fluctuations in the aviation sector.

“The refinery’s decision is expected to provide relief to airline operators by lowering fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares,” the statement read.

In addition to the price reduction, the refinery introduced a 30-day interest-free credit facility for marketers and airline operators, backed by bank guarantees.

The company said the credit scheme is designed to give operators more flexibility within the aviation fuel supply chain.

Industry stakeholders have long complained that the high cost of Jet A1—combined with expenses such as maintenance, foreign exchange volatility, insurance, and airport charges—has made airline operations increasingly difficult.

The refinery also disclosed that it has transitioned from a dollar-based pricing system to a naira-denominated model.

This shift is expected to reduce exposure to foreign exchange fluctuations and provide more stable pricing for local aviation fuel buyers.

Airline operators have consistently raised concerns that dollar-linked fuel pricing contributes to higher operational costs and ultimately increases airfares.

With the new naira-based pricing structure, domestic carriers are expected to plan fuel purchases with greater certainty and stability.

The latest interventions come amid ongoing concerns over rising aviation fuel costs in Nigeria, which stakeholders say are putting significant pressure on the sustainability of flight operations.

For many airlines, fuel remains one of the largest operating expenses, with sudden price changes affecting scheduling, routes, and ticket pricing.

The Dangote refinery said the measures are part of its broader effort to support the aviation sector and ensure uninterrupted fuel supply nationwide.