May 19, (THEWILL) — Dangote Petroleum Refinery has reduced the ex-depot price of aviation fuel, also known as Jet A1, from ₦1,750 to ₦1,650 per litre, in a move expected to ease mounting pressure on Nigeria’s aviation industry.
The refinery announced the price cut in a statement issued on Monday, noting that the decision forms part of wider efforts to support airline operators, stabilise fuel supply, and strengthen the country’s aviation value chain.
Beyond the price reduction, Dangote Refinery also introduced a 30-day interest-free credit facility for airline operators and fuel marketers, backed by bank guarantees. The company further disclosed plans to transition from a dollar-denominated pricing system to a naira-based model for Jet A1 transactions.
According to the refinery, the measures are aimed at reducing the financial burden on domestic carriers grappling with soaring operating costs driven largely by volatile aviation fuel prices.
Jet A1 remains one of the biggest cost components for airlines in Nigeria, with operators repeatedly warning that rising fuel prices could trigger route cuts, flight reductions, and higher ticket fares. Industry stakeholders believe the latest reduction in ex-depot pricing could improve airline cash flow and potentially moderate ticket prices on domestic routes.
The Federal Government has also stepped up efforts to stabilise the aviation sector amid fears of disruptions linked to escalating fuel costs. In April, the Nigerian Midstream and Downstream Petroleum Regulatory Authority held talks with airline operators, marketers, and other stakeholders to avert a possible fuel supply crisis.
The intervention followed threats by domestic airlines to suspend operations nationwide after aviation fuel prices reportedly surged above ₦3,000 per litre. Analysts attributed the sharp rise partly to geopolitical tensions in the Middle East and restrictions around the Strait of Hormuz, a critical global energy shipping route.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
