Dangote Petroleum Refinery has reduced the price of aviation fuel, also known as Jet A1, from N1,750 to N1,650 per litre in a move aimed at easing operational costs for airlines and ensuring stable fuel supply across Nigeria.

The refinery also introduced a 30-day interest-free credit facility for marketers and airline operators backed by bank guarantees, alongside a transition from a dollar-based pricing structure to a naira-denominated model.

The latest intervention comes amid mounting concerns within the aviation industry over rising operating expenses, with aviation fuel accounting for a major share of airline costs.

Domestic airline operators and industry stakeholders have repeatedly warned that increasing Jet A1 prices were placing heavy financial pressure on carriers and threatening the sustainability of flight operations across the country.

Analysts say the reduction in fuel prices is expected to provide significant relief to airlines by lowering fuel procurement expenses, improving operational efficiency and supporting efforts to stabilise or reduce airfares for passengers.

The naira-based pricing arrangement is also expected to reduce foreign exchange pressures on operators who previously relied on dollar-denominated transactions for aviation fuel purchases.

Industry observers believe the refinery’s credit facility could further improve liquidity for marketers and airline operators by allowing them more flexibility in fuel procurement and operational planning.

The development forms part of broader efforts by Dangote Refinery to strengthen local refining capacity, improve energy supply chains and support key sectors of the Nigerian economy.