Dangote Petroleum Refinery has reduced the price of jet fuel from N1,750 per litre to N1,650 per litre.
The corporation made this known in a statement made accessible to the press yesterday.
The PUNCH says that the threat by the airlines in Nigeria to suspend operations over the hike in the price of aviation fuel.
The Airline Operators of Nigeria stated the increase in the price of aviation fuel in Nigeria since the beginning of the US-Iran war was not in tandem with the international hike.
The airlines said the price of fuel had shot up from roughly N900 per litre before the crisis to between N2,700 and N2,900 with some merchants selling as high as N3,300.
But the Dangote refinery said in the statement yesterday that the price fall followed a 30-day interest-free credit facility supported by bank guarantees for marketers and aircraft operators and a move away from dollar-based pricing to a naira-based pricing.
The Dangote Petroleum Refinery & Petrochemicals has dropped the price of aviation fuel (Jet A1) from N1,750 per litre to N1,650 per litre to ease cost pressure on airlines and ensure uninterrupted fuel supply across the country.
The statement stated in part: “This is in addition to a 30-day interest-free credit facility supported by bank guarantees (BG) for marketers and airline operators and a shift from dollar-denominated pricing structure to a naira-based model.
It said the actions were at a time of increased worries over the rising cost of operations for local carriers, with aviation fuel taking a large chunk of airline costs.
Industry stakeholders have repeatedly warned that the rising Jet A1 rates were putting tremendous financial burden on operators and endangering the sustainability of flying operations.
The refinery’s move is expected to reduce the pressure on airline operators by cutting their expenses of buying fuel, helping them to operate more stably and supporting their attempts to keep prices from rising.
About the Author
