Dangote Petroleum Refinery Slashes Aviation Fuel Price by N100 to Ease Airline Costs

The latest adjustment represents a N100 reduction from the previous price of N1,750 per litre and comes amid mounting pressure within Nigeria’s aviation industry over the escalating cost of Jet A1 fuel.

Domestic airline operators had recently warned that surging aviation fuel prices were threatening the sustainability of flight operations across the country.

Industry stakeholders noted that fuel costs, which account for a substantial portion of airline operating expenses, had risen sharply in recent weeks following renewed geopolitical tensions in the Middle East.

According to market operators, aviation fuel prices climbed from below N1,000 per litre before the crisis to levels above N2,700 per litre in parts of the market with some suppliers reportedly selling at even higher rates.

In addition to the price reduction, the refinery introduced a 30-day credit arrangement for marketers and airline operators backed by bank guarantees.

The company also confirmed a transition from dollar-based pricing to a naira-denominated structure for aviation fuel sales.

The refinery said the measures are designed to improve product accessibility, reduce cost pressures on operators and ensure more stable fuel availability within the aviation sector.

Market analysts believe the intervention could provide temporary relief for airlines struggling with elevated operational costs, foreign exchange volatility and weakening profit margins.

Lower aviation fuel prices are also expected to moderate pressure on ticket fares if sustained over time, especially as airlines continue to battle high maintenance costs, currency depreciation and financing constraints.

The development further reinforces Aliko Dangote’s growing influence in Nigeria’s downstream petroleum market as the refinery expands supply across multiple fuel segments, including diesel, petrol and aviation fuel.

Industry participants will now monitor whether the price cut triggers broader adjustments among fuel marketers and improves operational stability within Nigeria’s aviation sector.