Dangote Refinery has set the price of Jet A1 aviation fuel at N1,820 per litre, well below the N3,000 per litre level that market participants had been speculating. The 650,000‑barrel‑per‑day refinery included the figure in a price list issued to customers, stating that the move aims to improve price transparency in the Nigerian Jet A1 market.
The announcement comes amid ongoing complaints from airline operators about the steep rise in Jet A1 costs. Since the escalation of conflict in the Middle East, the price of the fuel has surged by roughly 300 percent, placing a heavy financial burden on carriers. Industry observers have pointed to speculative pricing and the activities of middlemen as additional factors that have amplified the price pressure.
Regulatory data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) corroborates the refinery’s pricing, indicating that current Jet A1 rates range from N1,960 to N2,800 per litre—still below the N3,000 per litre ceiling that had been cited in market rumours.
In response to the broader cost challenge, the federal government recently announced a 30 percent debt discount for airline operators, a measure intended to avert disruptions in the aviation sector. The discount follows threats from carriers to either suspend services or increase passenger fares if fuel costs remain unaffordable.
The alignment of Dangote Refinery’s pricing with the lower end of the regulatory range could provide immediate relief to airlines that have been grappling with the inflated fuel market. By reducing the fuel cost baseline, the refinery may also help stabilize fare structures and support the continuity of air services in Nigeria.
Stakeholders will be watching how airlines adjust their operational budgets and whether the price reduction leads to a broader recalibration of Jet A1 pricing across the market. Continued monitoring by the NMDPRA will be essential to ensure that the lower pricing translates into sustained affordability for carriers and does not trigger a resurgence of speculative practices.
