Local airline operators are set to benefit from lower operating costs following the decision by Dangote Petroleum Refinery to reduce the price of aviation fuel (Jet A1) to N1,650 per litre from N1,750 per litre.
The refinery said the price adjustment is part of efforts to ease financial pressure on domestic carriers and ensure uninterrupted fuel supply across the country amid rising operational costs in the aviation sector.
In addition to the price cut, the refinery also introduced a 30-day interest-free credit facility for marketers and airline operators, backed by bank guarantees, while transitioning from a dollar-denominated pricing structure to a naira-based model.
The intervention comes at a time when industry stakeholders have continued to express concerns over the increasing cost of aviation fuel, which accounts for a significant share of airline operating expenses.
Operators have repeatedly warned that the surge in Jet A1 prices was putting severe strain on their finances and threatening the sustainability of flight operations.
Analysts believe the reduction in fuel prices will help airlines lower procurement costs, improve operational stability, and support efforts to moderate airfares for passengers.
The refinery’s latest move is also expected to strengthen supply confidence within the aviation industry and provide some relief to operators grappling with inflationary pressures and foreign exchange challenges.
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SOURCE: LEADERSHIP NEWS PAPER
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