The current price of Jet A-1 fuel has skyrocketed from about N900 per litre before geopolitical tensions escalated to between N2,700 and N2,900. In fact, it recently reached as high as N3,300 per litre according to reports from airline operators. This dramatic increase of over 300 percent has placed immense pressure on Nigerian airlines.

That context matters because the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had previously recommended that prices for aviation fuel in Lagos should range between N1,760 and N1,988. The refinery’s pricing strategy aims to provide some relief amidst this volatility.

Furthermore, the Dangote refinery supplies over 90 percent of Nigeria’s aviation fuel needs. Recently, it commenced direct Jet A-1 supply to Ethiopian Airlines, which highlights its growing influence in the region’s aviation industry.

While the new price of N1,820 is a step toward stabilization, officials acknowledge that it may not remain fixed. An unnamed source stated, “Yes, as of today, our jet fuel is N1,820 a litre. Note that this price is not stable.” This uncertainty reflects the ongoing challenges faced by the sector.

Industry leaders have voiced their concerns about the sustainability of airline operations under these conditions. Abimbola Olashore remarked, “We don’t want the airline industry to go under. So, we must find ways.” This sentiment underscores the urgency for solutions amid rising operational costs.

The fluctuations in oil prices and geopolitical tensions—particularly related to conflicts like the US-Iran war—have significantly impacted aviation fuel prices. As a result, actual market prices may vary outside the recommended ranges due to these external factors.

In response to these challenges, Dangote refinery plans to publish aviation fuel prices daily for transparency. George Ene-Ita noted that what the refinery is doing “is a concession to help ease overhead cost pressures in the aviation sector in order not to truncate its operations.” This commitment could help foster trust among stakeholders.

As the situation evolves, stakeholders will be watching closely how these price adjustments affect operations within Nigeria’s aviation sector. The next steps taken by both the refinery and regulatory authorities will be crucial in determining future stability.

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