In an effort to alleviate financial strains on airlines and guarantee a consistent supply of fuel nationwide, Dangote Petroleum Refinery & Petrochemicals has lowered the price of aviation fuel (Jet A1) to N1,650 per litre from N1,750 per litre. A statement was provided to footynaija on Monday, which included the price modification.
In addition to switching from a dollar-denominated to a naira-based pricing model, marketers and airline operators now have access to a 30-day interest-free borrowing facility backed by bank guarantees (BG).
A major component of airline expenditures is aviation fuel, and these initiatives are in response to mounting concerns about the increasing operational costs experienced by domestic carriers. Stakeholders in the industry have long voiced concerns that operators are facing tremendous financial hardship due to rising Jet A1 pricing, which in turn threatens the viability of flight operations.
Reducing fuel procurement costs, enhancing operational stability, and supporting attempts to moderate prices are all ways in which the refinery’s move is expected to alleviate pressure on airline operators.