Airlines to Cut Fares as Dangote Reduces Jet A1 Price

Domestic airlines in Nigeria are expected to lower flight fares next week after Dangote Petroleum Refinery announced a reduction in the price of aviation fuel (Jet A1) to N1,650 per litre, down from N1,750. This decision is intended to ease cost pressures on airlines and ensure a steady fuel supply across the country.

Dangote has also provided airlines with a 30-day interest-free credit facility for purchasing fuel in naira, contrasting with previous practices that required dollar transactions. Chris Ndulu, a representative from the aviation oil market, confirmed that the first batch of fuel at the new price has been purchased.

Airlines are encouraged to reduce fares to attract more passengers, as current ticket prices are considered high. For instance, flights from Lagos to Abuja are priced at N200,000, while routes like Lagos to Anambra State are charging N270,000.

The reduction in fuel prices is anticipated to lead to a decrease in fares, making air travel more accessible.