Key points
- Dangote Refinery begins direct Jet A-1 supply to airlines at N1,820/litre
- Airlines battle soaring fuel costs amid global oil shocks and market disputes
- LCCI urges government intervention to stabilise aviation sector and reduce costs
Main story
Nigeria’s aviation fuel market is entering a new phase as the Dangote Petroleum Refinery commences direct sales of Jet A-1 to airlines, offering the product at N1,820 per litre amid mounting pressure on operators grappling with escalating costs.
A senior official of the Dangote Group confirmed that the Lekki-based refinery, which currently supplies over 90 per cent of Nigeria’s aviation fuel demand, has opened its loading bay to both local and international carriers willing to procure directly.
The development follows confirmation that Ethiopian Airlines has already begun lifting jet fuel from the refinery, signalling a shift in supply dynamics within the downstream petroleum sector.
The move comes at a critical time for Nigeria’s aviation industry, where operators have warned of potential shutdowns due to a sharp spike in fuel prices. Industry data indicate that Jet A-1 prices surged from about N900 per litre in February to as high as N2,700–N3,500 in recent weeks, driven largely by global crude oil volatility linked to geopolitical tensions in the Middle East.
Dangote officials noted that while the company had previously absorbed costs to stabilise petrol and diesel prices, aviation fuel would be sold strictly at prevailing market rates, reflecting global realities.
To improve transparency, the refinery also disclosed plans to begin publishing jet fuel prices regularly, allowing market participants to track pricing trends more effectively.
The issues
The aviation sector is facing a cost crisis driven by volatile global oil prices, foreign exchange pressures, and pricing disputes between airlines and fuel marketers. The sharp rise in Jet A-1 costs has significantly increased airlines’ operating expenses, threatening route viability and overall sector sustainability.
Additionally, concerns over pricing transparency and market structure have intensified tensions between airline operators and fuel suppliers.
What’s being said
Airline Operators of Nigeria (AON) have described the recent surge in jet fuel prices as “astronomical and unsustainable,” arguing that increases by marketers far exceed global crude oil price movements.
In response, the Major Energies Marketers Association of Nigeria (MEMAN) attributed price fluctuations to international market disruptions, particularly geopolitical tensions, while disputing claims of extreme pricing levels.
Meanwhile, the Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to implement measures that will ease airlines’ cost burden and prevent a potential industry collapse.
What’s next
Industry stakeholders expect increased competition and potential price moderation as direct supply arrangements expand. Regulatory agencies are also likely to intensify oversight, particularly around pricing benchmarks and market transparency.
Further engagement between government, refiners, marketers, and airline operators is anticipated to stabilise the sector and ensure sustainable fuel supply.
Bottom line
Dangote Refinery’s entry into direct jet fuel supply could reshape Nigeria’s aviation fuel market, but without coordinated policy action and cost management, airlines may continue to face severe operational pressures in an increasingly volatile global energy environment.
