Energy: Why Dangote Refinery cuts Jet A1 price –Official

*Dangote Petroleum Refinery and Petrochemicals Limited, Lagos, announces PMS price reduction from N1,750 per litre to N1,650 per litre as part of measures at easing off cost pressures on airlines while ensuring uninterrupted fuel supply to consumers across the West African country

Alexander Davis | ConsumerConnect

Dangote Petroleum Refinery and Petrochemicals Limited, Lagos, has announced a reduction in the price of aviation fuel, otherwise known as Jet A1 from initial N1,750 per litre to N1,650 per litre.

The Refinery said the move was aimed at easing off cost pressures on airlines, and ensuring uninterrupted fuel supply across the country.

The oil-refining facility also noted in a statement that the current price slash is addition to a 30-day interest-free credit facility backed by Bank Guarantees (BG) for marketers and airline operators.

The approach is considered as a shift from a Dollar-denominated pricing structure to a Naira-based model.

According to Dangote, these interventions came amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.

It further stated that industry stakeholders repeatedly, have warned that escalating Jet A1 prices were placing severe financial strain on airline operators, and threatening the sustainability of flight operations.

Dangote Refinery averred: “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.”