Dangote Petroleum Refinery has announced a reduction in the ex-depot price of aviation fuel (Jet A1), lowering it from ₦1,750 to ₦1,650 per litre in a move aimed at easing pressure on airline operators in Nigeria.

The refinery disclosed the adjustment in a statement on Monday, noting that the decision is part of ongoing efforts to stabilise fuel supply and reduce operational costs within the aviation sector.

The development comes at a time when rising aviation fuel prices continue to weigh heavily on domestic airlines and contribute to increased airfares across the country.

The company also announced a 30-day interest-free credit facility for marketers and airline operators, backed by bank guarantees, as part of measures to improve liquidity within the sector.

According to the refinery, it is also transitioning from a dollar-denominated pricing model to a naira-based structure for Jet A1 transactions, a shift it said is designed to strengthen local market stability.

“This is in addition to a 30-day interest-free credit facility backed by bank guarantees for marketers and airline operators and a shift from a dollar-denominated pricing structure to a naira-based model,” the statement noted.

The refinery explained that these initiatives are intended to support Nigeria’s aviation value chain, which has been under pressure due to rising operational costs and fluctuating fuel prices.

The reduction is expected to provide some relief to airlines, many of which have repeatedly raised concerns over the high cost of Jet A1, one of the biggest components of their operating expenses.

Several domestic carriers have warned that sustained fuel price increases could force them to reduce flight frequency, adjust routes, or further increase ticket prices.

Industry stakeholders say the latest price cut could help improve airline cash flow and potentially moderate domestic airfares if sustained.

The Federal Government has also been engaged in discussions with aviation stakeholders in recent months in a bid to prevent fuel supply disruptions and stabilise the sector.

Earlier interventions by regulators included proposals to cap jet fuel prices and introduce credit support mechanisms for struggling operators.

In April 2026, Nigerian airlines had threatened a nationwide suspension of operations following a sharp increase in Jet A1 prices, which had climbed above ₦3,000 per litre at some point.

The rise in aviation fuel costs has been linked partly to global supply pressures, including geopolitical tensions affecting energy routes such as the Strait of Hormuz, a key channel for global crude shipments.

While local sourcing has helped cushion some supply challenges, international pricing benchmarks continue to influence landing costs for aviation fuel in Nigeria.

The post Dangote Refinery Cuts Aviation Fuel Price, Introduces Interest-Free Credit for Airlines appeared first on Housing TV Africa.

Air passengers in may soon face higher ticket prices as the cost of aviation fuel, also known as Jet A1, continues to surge across the country.

Industry data shows that Jet A1 currently sells for about ₦1,835 per litre in Kano, ₦1,820 in Abuja, ₦1,815 in Port Harcourt, and ₦1,780 in Lagos, placing significant financial pressure on airline operators.

Airlines Under Rising Cost Pressure

The spokesperson for the , , said the sharp increase in aviation fuel prices could force airlines to review ticket fares soon.

According to him, airlines must submit fare adjustments to the for approval before implementation.

Okonkwo explained that aviation fuel previously sold for around ₦1,000 per litre before the recent global crisis, but prices have nearly doubled.

He added that airlines are already facing low passenger demand outside the peak travel season, which makes the rising operational costs even more difficult to absorb.

Global Oil Tensions Affect Aviation Industry

Okonkwo linked the sudden increase in fuel prices to global geopolitical tensions, particularly developments involving , which often influence international oil prices.

He noted that the aviation industry is highly sensitive to external factors such as global conflicts, weather conditions, and currency fluctuations.

Dollar Dependence Driving Fuel Costs

Aviation analyst said Nigeria’s reliance on the United States dollar for petroleum transactions is a key factor behind the rising price of Jet A1.

According to him, even locally refined fuel must be priced based on global crude oil rates in dollars.

He noted that if fuel transactions were conducted purely in naira, aviation fuel could cost closer to ₦900 per litre.

Caulcrick explained that refiners and suppliers, including , must convert their earnings into dollars to purchase crude oil at international market prices.

CBN Interventions Supporting the Naira

The analyst also pointed out that the has been intervening in the foreign exchange market to prevent the naira from weakening further.

He warned that without such interventions, the naira could have depreciated to around ₦1,000 per dollar, which would push aviation fuel prices even higher.

Passengers Likely to Feel the Impact

Experts say the rising fuel cost will inevitably lead to higher ticket prices.

While business travellers may continue to fly despite the increase, leisure travellers could reduce their trips due to affordability concerns.

This could result in lower seat occupancy rates for airlines and further strain their revenues.

The post Airfares May Increase as Aviation Fuel Price Hits ₦1,835 Per Litre in Nigeria appeared first on Housing TV Africa.