The Dangote Petroleum Refinery has reduced the price of aviation fuel (Jet A1) to N1,650 (US$1.09) per litre from N1,750 (US$1.16), in a move aimed at easing cost pressures on Nigeria’s aviation sector and stabilising domestic fuel supply.
The price adjustment, announced in a statement on Monday, comes at a time of heightened volatility in global energy markets and renewed strain on airlines operating in Africa’s largest economy.
The refinery said the decision was intended to support airlines struggling with rising operating costs and to ensure uninterrupted availability of aviation fuel across the country.
The latest reduction follows weeks of concern from domestic carriers, which have warned that surging jet fuel prices are undermining flight operations and threatening route sustainability. Airlines had previously reported that aviation fuel costs jumped from about N900 (US$0.59) per litre before the escalation in global geopolitical tensions to between N2,700 (US$1.78) and N3,300 (US$2.17) per litre in some parts of the market.
Industry operators say fuel accounts for as much as 40–50 percent of total airline operating costs in Nigeria, making aviation highly sensitive to price swings in Jet A1.
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The refinery also introduced additional support measures alongside the price cut, including a 30-day interest-free credit facility for marketers and airline operators. The facility is backed by bank guarantees and is designed to ease liquidity constraints within the downstream aviation fuel supply chain.
In addition, the company said it is transitioning from dollar-denominated pricing to a naira-based model for domestic transactions, a shift it said would reduce foreign exchange exposure and improve price stability for local operators. Analysts say the move could help limit the impact of currency volatility, which has been a major driver of fuel price fluctuations in Nigeria.
The adjustment comes as Nigeria’s aviation industry continues to grapple with inflationary pressures, foreign exchange shortages and rising maintenance costs, all of which have combined to push up ticket prices in recent months. Some domestic routes have seen fares rise by more than 30 percent over the past year, according to industry estimates.
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Airlines have repeatedly warned that sustained high fuel costs could force capacity cuts or route suspensions if no relief is provided. Earlier this year, operators threatened a temporary suspension of services, citing unsustainable operating conditions linked to aviation fuel pricing.
Energy analysts say the entry of large-scale domestic refining capacity is beginning to reshape Nigeria’s downstream petroleum market. The Dangote Petroleum Refinery, which began operations as part of efforts to reduce dependence on imported refined products, has increasingly become a key price setter in the local market.
The refinery’s pricing decisions are being closely watched by both airlines and fuel marketers, given its growing influence over supply dynamics and its ability to affect nationwide pricing trends.
Nigeria, Africa’s most populous country, imports a significant portion of its aviation fuel needs despite being a major crude oil producer, largely due to historic underperformance of state-owned refineries. The entry of private refining capacity is expected to gradually reduce import dependence and improve supply security, although industry observers caution that distribution bottlenecks and foreign exchange constraints remain challenges.
Market participants say the latest price cut may offer short-term relief to airlines, but longer-term stability will depend on broader macroeconomic conditions, including global oil prices, domestic refining output, and currency performance.
For passengers, the impact could translate into slower fare increases or temporary price stabilisation on some routes, although analysts warn that broader inflationary pressures in the economy may limit the benefits.
The refinery said it remains committed to supporting the aviation sector and ensuring that fuel availability is not a constraint to domestic and regional connectivity.
