- The Dangote Petroleum Refinery has announced a direct reduction in the price of aviation fuel (Jet A1), dropping it from ₦1,750 to ₦1,650 per litre to alleviate crushing cost pressures on domestic airlines.
- Alongside the price cut, the refinery has introduced a 30-day interest-free credit facility backed by bank guarantees, giving cash-strapped domestic operators much-needed financial breathing room.
- In a major structural change to domestic fuel procurement, the company has abandoned its previous dollar-denominated pricing framework, fully shifting to a naira-based model for marketers.
The Dangote Petroleum Refinery has moved to slash the price of premium aviation fuel (Jet A1) nationwide.
Eko Hot Blog reports that in an official statement released on Tuesday, May 19, 2026, the refinery management confirmed it dropped its wholesale price to ₦1,650 per litre.
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The intervention is intentionally designed to ease the extreme financial bottlenecks currently threatening to ground Nigeria’s commercial flight networks, where fuel procurement has rapidly risen to consume the vast majority of local carrier overheads.
The pricing adjustment addresses an ongoing crisis within the local transport economy. Following the outbreak of the United States–Iran conflict, international energy speculation triggered massive spikes in heavy fuel costs.
The Airline Operators of Nigeria (AON) recently issued warnings of an imminent, industry-wide shutdown, revealing that downstream marketers were capitalizing on the crisis to sell aviation fuel at deregulated heights ranging between ₦2,700 and ₦3,300 per litre.
AON argued these prices were wildly disproportionate to international averages, triggering severe operational instability and driving local ticket prices out of reach for ordinary travelers.
To fundamentally alter the market’s liquidity constraints, Dangote Refinery went beyond a basic price cut by rolling out a specialized 30-day interest-free credit facility.
This fiscal cushion, accessible to marketers and airline operators when backed by valid bank guarantees, is expected to stabilize supply lines and prevent sudden shortages at major national airports.
Furthermore, the refinery has completely eliminated its dollar-denominated billing structure for Jet A1, routing all future domestic contracts through a predictable, naira-based pricing model to insulate local airlines from foreign exchange volatility.
Aviation and energy stakeholders have widely praised the dual intervention, viewing it as a decisive mechanism to force a downward correction in general retail ticket costs.
By utilizing local refining capacity to bypass international shipping bottlenecks and volatile import fees, the refinery’s strategic framework offers a long-term buffer for the transit sector.
Industry analysts expect that if downstream independent marketers pass these structural savings directly to the airlines, it will significantly lower baseline operations, support scheduling reliability, and protect the overall commercial viability of the country’s airspace.
