The Airlines Operators of Nigeria (AON) have confirmed a reduction in the price of aviation fuel, following the commencement of operations at the Dangote Refinery.
This breakthrough came after AON met with the Dangote Group’s management to address the bottlenecks that had been driving up the cost of the essential commodity, subsequently causing a spike in airfares.
For over a year, the end of Nigeria’s fuel subsidy regime had seen petroleum product prices soar, with aviation fuel reaching a critical high of N1,300 per litre by February.
Airline operators voiced their concerns, highlighting the urgent need for government intervention to prevent operational collapse.
The situation was exacerbated by fluctuating forex rates and the escalating cost of aviation fuel, which disrupted operational planning and stability within the sector.
However, in a move aimed at alleviating these challenges, Dangote announced a reduction in the prices of diesel and aviation fuel in April.
According to Dangote, the price of aviation fuel was cut to N940 per litre for customers purchasing five million litres and above, and to N970 per litre for those buying one million litres and above.
Anthony Chiejina, the Head of Communication at Dangote, emphasized the company’s commitment to easing economic hardship on Nigerians.
“Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations to ensure that consumers can buy fuel at affordable prices, whether in Lagos or Maiduguri. You can now purchase one litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates,” he said.
This partnership is expected to expand to other major oil marketers, ensuring that retail buyers do not face exorbitant prices.
Prof. Obiora Okonkwo, spokesperson for AON, confirmed the price reduction, acknowledging the positive impact of their discussions with the Dangote management team.
“We understand that prices fluctuate due to the naira-to-dollar exchange rate and coal value. However, we have noticed a reduction compared to when we were buying from other marketers,” he said.
Despite this optimism, there remains some dissent within the industry. Ado Sanusi, Managing Director of Aero Contractors, stated he was unaware of any price reduction, maintaining that his airline continued to purchase aviation fuel at prices ranging between N1,000 and N1,200.
“I am not aware of any reduction in our fuel prices. We still buy between N1,000 and N1,200. Please, quote them and quote me that I am not aware of any price reduction,” he asserted.
Nevertheless, the general sentiment within the aviation sector is one of cautious optimism. The recent collaboration between Dangote and AON represents a promising step toward stabilizing fuel prices and, by extension, airfares in Nigeria.
As the partnership develops and more oil marketers join the initiative, the industry hopes for sustained relief from the high costs that have plagued it for the past year.
