Dangote Petroleum Refinery & Petrochemicals has reduced the price of aviation fuel (Jet A1) to N1,650 per litre from N1,750 per litre, in a move aimed at easing cost pressures on airlines and ensuring uninterrupted fuel supply across the country.
This is in addition to a 30-day interest-free credit facility backed by bank guarantees (BG) for marketers and airline operators and a shift from a dollar-denominated pricing structure to a naira-based model.
These interventions come amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses. Industry stakeholders have repeatedly warned that escalating Jet A1 prices were placing severe financial strain on operators and threatening the sustainability of flight operations.
The refinery’s decision is expected to provide relief to airline operators by lowering fuel procurement costs, improving operational stability, and supporting efforts to moderate airfares.
Nigeria’s Current Jet Fuel Crisis
Nigeria’s jet fuel crisis in 2026 is primarily a pricing and supply-chain crisis. The cost of Aviation Turbine Kerosene (Jet A1) surged to as high as ₦3,300 per litre in April, sharply increasing operating costs for domestic airlines. Fuel accounts for more than 40% of airline expenses, pushing carriers to threaten flight suspensions and forcing ticket prices upward.
A major factor behind the crisis is the global disruption caused by tensions in the Middle East, particularly reduced shipments through the Strait of Hormuz. This sent international jet fuel prices soaring, affecting Nigeria despite the country being a crude oil producer. Nigeria still relies on refined fuel pricing linked to global benchmarks, making domestic airlines vulnerable to international shocks.
The Dangote Petroleum Refinery has become a critical supplier, now providing more than 95% of Nigeria’s Jet A1 fuel according to airline operators. However, airlines argue that middlemen and logistics costs continue to inflate prices between the refinery gate and airport delivery points.
The impact on travelers has been significant. Airlines have delayed and rescheduled flights, reduced frequencies, and raised fares. Business travel, tourism, and cargo operations have all been affected, with passengers facing higher costs and less reliable schedules.
