Dangote Refinery has set its JetA1 aviation fuel price at N1,820 per liter, a move aimed at undercutting the N3,000 per liter level that had been widely discussed by fuel marketers. The 650,000-barrel-per-day refiner said in a customer pricing schedule that pegging JetA1 at N1,820 would improve price transparency across Nigeria’s aviation fuel market.
Over the past months, airline operators have complained about the burden of JetA1 costs, saying prices rose sharply after tensions in the Middle East escalated. The increase was described as roughly 300% during the period, leaving carriers facing higher operating expenses and intensifying concerns about the role of intermediaries. Operators have also pointed to speculative pricing and middlemen as factors that compounded the problems, making it harder for airlines to plan costs and pass increases to customers.
Separately, the Nigerian Midstream and Downstream Petroleum Regulatory Authority stated that JetA1 was trading between N1,960 and N2,800 per liter, adding that it was not above the N3,000 threshold that had been circulating in the market. Earlier reporting had indicated that the Nigerian government offered airline operators a 30% discount on aviation-related debt as part of an intervention intended to reduce disruption in the sector.
With JetA1 costs surging, airline operators had warned that they could either suspend operations or raise airfares. Dangote’s new pricing announcement therefore arrives as carriers press for clearer pricing benchmarks and relief measures to prevent further strain on the industry.
