Dominant fuel producer in the country, Dangote Petroleum Refinery & Petrochemicals Limited, has announced a reduction in the prices of aviation fuel by N100 per liter; a significant cut when spread across large volumes of consumption.
A statement from the company has it that the price of aviation fuel also called Jet A1 from the company has consequently fallen from N1,750 per litre to N1,650 per litre.
The company explained that the price reduction came in a move aimed at easing cost pressures on airlines and ensuring an uninterrupted fuel supply across the country.
“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 company declared Monday evening.
The interventions, according to the statement, come amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.
The company quoted industry stakeholders as having repeatedly warned that escalating Jet A1 prices were placing severe financial strain on operators and threatening the sustainability of flight operations.
“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 concluded.
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