DANGOTE Petroleum Refinery & Petrochemicals has reduced the price of aviation fuel, also known as Jet A1, from N1,750 to N1,650 per litre.
The refinery announced the development on Tuesday in a statement that it had introduced a 30-day interest-free credit facility for marketers and airline operators, supported by bank guarantees, adding that the reduction was intended to ease the financial burden on airlines and help maintain a steady fuel supply nationwide.
“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 are placing severe financial strain on operators and threatening the sustainability of flight operations,” the statement read.
The ICIR reported that on April 14, the Airline Operators of Nigeria (AON) threatened to suspend operations from April 20 over the rising cost of Jet A1. It explained that the price of aviation fuel increased from N900 per litre as of February 28 to N3,300 per litre, representing over 300 per cent.
In response to the supply and pricing challenges, the federal government established a technical committee, which later recommended the inclusion of aviation fuel in the naira-for-crude arrangement.
The committee also proposed that the indicative end-user price of aviation fuel should range between N1,760 and N1,988 per litre in Lagos, and between N1,809 and N2,037 per litre in Abuja.
The surge in oil prices around the world follows the protracted conflict involving the United States and Iran, which has disrupted global energy markets. Crude prices have risen sharply from around $70 per barrel since the outbreak of hostilities, while concerns have deepened after the closure of the Strait of Hormuz, a key shipping route responsible for nearly 20 per cent of global oil transportation.
Consequently, Nigerian crude prices neared $120 per barrel on Tuesday, May 19.
Data from the Central Bank of Nigeria showed that Bonny Light, the country’s flagship crude grade, traded at about $117 per barrel, nearing levels recorded in April when prices briefly approached $140 per barrel.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.