Operators Hail Dangote’s N1,820/Litre Jet Fuel Price Peg, Cite Cost Relief For Airlines

Airline operators in Nigeria have welcomed Dangote Petroleum Refinery’s decision to peg the price of its aviation fuel (Jet A1) at N1,820 per litre, describing the move as a major relief for the aviation industry and a step toward stabilising operating costs.

The refinery also commenced daily publication of its aviation fuel prices, a move widely interpreted by stakeholders as an effort to improve transparency, strengthen price discovery, and reduce long-standing uncertainties in the sector’s fuel supply chain.

Market intelligence platform, Petroleumprice.ng, noted that the introduction of a daily pricing framework marks a shift toward a more structured and predictable jet fuel market, which has historically been characterised by volatility and opacity.

The development comes at a time when airline operators have continued to grapple with rising fuel costs, which account for over 40 per cent of total operating expenses in Nigeria’s aviation sector.

Despite global crude oil prices remaining relatively moderate, operators say domestic aviation fuel prices have continued to rise above global benchmarks, raising concerns about inefficiencies in the downstream supply chain.

Chairman of Air Peace, Allen Onyema, has previously raised concerns about the widening gap between refinery prices and retail market prices, warning that unchecked pricing practices could undermine the industry’s sustainability.

Industry data shows that while Dangote Refinery has pegged its gantry price at N1,820 per litre, some downstream marketers have reportedly sold aviation fuel at N2,230 per litre, creating a significant margin gap and raising questions about distribution inefficiencies.

Analysts say the refinery’s decision to publish daily prices effectively introduces a benchmark for the market, which could help expose excessive markups, improve transparency, and enhance regulatory oversight across the value chain.

The move is also expected to improve airlines’ operational planning by providing a more predictable pricing structure, reducing arbitrage opportunities, and boosting investor confidence in the aviation sector.

Speaking exclusively to LEADERSHIP, the managing director of Aero Contractors Airlines, Capt. Ado Sanusi described the move as a major step toward sustainability and operational stability in Nigeria’s aviation sector.

Sanusi said the refinery’s decision to publish its jet fuel prices openly aligns with long-standing calls by industry operators for clarity in fuel pricing, which has remained a significant cost component for airlines.

“This is a welcome development. This is what I have been championing for a very long time, even before Dangote finally came to start producing and supplying products,” he said.

He noted that during the period when aviation fuel was largely imported, stakeholders had consistently demanded that landing costs at Apapa be made public to prevent exploitation and ensure fairness across the industry.

“When we used to import, we always said prices landing at Apapa should be visible for everybody to see, so no one takes advantage of the airlines. This reporting of pricing by Dangote is therefore a welcome development,” Sanusi added.

According to him, the move will not only reduce airlines’ financial burden but also enhance operational planning through improved cost predictability.

He further expressed appreciation to the refinery for what he described as a “positive and attractive gesture,” noting that transparent pricing would allow operators to better forecast expenses and manage their operations efficiently.

“We believe this will go a long way in reducing the burden on airlines. It will also ensure that pricing is very transparent and that everyone knows the actual cost of fueling aircraft. This gives us a better framework for planning and forecasting our operations,” he said.

Sanusi reiterated that transparency remains critical to building a sustainable aviation industry, expressing optimism that the new pricing regime would foster greater stability and trust among stakeholders.