Airline Operators Confirm Reduction in JetA1 Price

Following the start of operations at the Dangote refinery, the Airlines Operators of Nigeria has confirmed a reduction in the price of aviation fuel in the country.

This development was achieved after the association met with the management team of the Dangote group to discuss bottlenecks making the important commodity expensive with a backlash of increased airfares.

Since the end of the fuel subsidy regime in the country over a year ago, the prices of all petroleum products have skyrocketed.

In February, airline operators lamented the skyrocketing price of aviation fuel, describing the development as critical and requiring immediate government intervention to prevent the collapse of their operations.

The airlines also said that the fluctuation in forex rates and the soaring cost of aviation fuel, which was N1,300 per litre at that time disrupted operational planning and stability within the aviation sector.

In April, Dangote announced a price reduction for diesel and aviation fuel.

According to Dangote, aviation was slashed to N940 per litre.

The company added that the reduction applied to customers buying five million litres and above from the refinery, while customers buying one million litres and above would pay N970 per litre.

Speaking on the development in a statement posted on the Dangote website, the Head of Communication, Anthony Chiejina, explained that the new price aligned with the company’s commitment to cushion the effect of economic hardship on Nigerians.

He said, “I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable prices, in all their stations be it Lagos or Maiduguri. You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.”

He further stated that the partnership would be extended to other major oil marketers. “The essence of this is to ensure that retail buyers do not buy at exorbitant prices,” he explained.

The spokesperson of AON, Prof. Obiora Okonkwo, confirmed the reduction in the price of JetA1 to The PUNCH but refused to give data to back up the claim.

“AON has met with the team of management at Dangote Group, and we discussed issues with them and they have been yielding.

“As for price, we don’t have any control over the price. We only rely on him (Dangote) to give us the most reasonable price. We understand that this thing fluctuates considering naira to the dollar and the value of coal. Now we have noticed some reduction compared to when we were buying from other marketers,” he noted.

Effort to get the amount reduced by the refining company, the AON publicist refused further comment.

He said, “I am not the accountant, I can’t give figures now please.”

However, the Managing Director of Aero Contractors, Ado Sanusi, differed with the submission of the AON publicist, saying he was not aware of any deduction.

He added that the airline had continued to buy aviation fuel between N1,000 and N1,200.

“I am not aware of any form of reduction in the price of our fuel. We still buy between N1000 and N1,200. Anybody can claim. Please, quote them and quote me that I am not aware of any price reduction,” he asserted.

June 27, 2024