Aviation Fuel Prices Remain High Despite Dangote Cut

Despite a price reduction of aviation fuel to N1,650 per liter by Dangote Petroleum Refinery, the market prices for jet A1 fuel in Nigeria remain elevated, selling between N1,900 and N2,000 per liter. This price cut, announced on a Monday, aims to alleviate cost pressures on airlines and ensure uninterrupted fuel supply across the country.

However, the Nigerian aviation industry continues to face challenges, including reduced flight frequencies and operational costs exceeding N2,500 per liter. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has set a price peg of N2,037 per liter in Abuja and a price band of N1,760 to N1,988 in Lagos.

Despite the reduction, airlines are struggling with high operational costs, leading to warnings of potential flight cancellations and increased ticket prices. The ongoing global fuel supply disruptions, exacerbated by geopolitical tensions, further complicate the situation for Nigerian airlines.