The Dangote Petroleum Refinery has reduced the price of aviation fuel, known as Jet A1, from N1,750 per litre to N1,650 per litre.
In a statement on Tuesday, the company said the price cut is intended to reduce financial pressure on airlines and help maintain steady fuel availability across the country.
Dangote Refinery also announced a new 30-day interest-free credit arrangement for fuel marketers and airline operators, supported by bank guarantees.
The company further said it is moving away from pricing with the US dollar and will now use a naira-based system.
“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.”
By lowering the price and introducing credit support, the refinery said it expects to improve airline operations, stabilize fuel supply, and potentially help reduce airfares for passengers.
Earlier in April, the Airline Operators of Nigeria warned that it might suspend operations due to rising fuel costs.
At the time, aviation fuel prices had reportedly climbed from N900 per litre in late February to about N3,300 per litre, marking a sharp increase of over 300 percent.
In response to the crisis, the federal government set up a technical committee to address supply and pricing issues in the aviation sector.
The committee recommended that aviation fuel be included in the naira-for-crude arrangement.
KanyiDaily recalls that Aliko Dangote recently revealed that he rejected offer by the Nigerian National Petroleum Company (NNPC) Limited to increase its ownership in the Dangote Petroleum Refinery.
