Jet A1 falls to N1,400

Jet A1 fuel prices have dropped to about N1,400 per litre as domestic supply from the Dangote refinery begins to ease pressure on airlines previously reliant on dollar-driven imports.

Public Relations Officer of United Nigeria Airlines, Chibuike Uloka, said the refinery had eased pressure by offering an alternative supply option previously unavailable to airlines.

He explained that airlines now have multiple sourcing channels, unlike when importation was the only option driving costs upward.

Uloka emphasised that Jet A1 is available locally and priced in line with international rates, with the key advantage being that airlines can now purchase without dollar payments.

He said, “The supply with Dangote has been okay. Not that they no longer buy in dollars, but there is not much pressure on dollars.

“There is now an alternative. It is no longer the time when it was only imports. Now, you have options. You can either import it or buy from Dangote. Whichever one is convenient for you.

“So, the point is that there is no scarcity of JetA1. There is no availability. But because Dangote sells what the international market sells. Whether you are buying in dollars or not, the only difference with Dangote is that you are not paying in dollars. So, you do not have to go and search for scarce FX to pay Dangote.”

He added that prices had dropped, especially across major flight hubs.

“The price of Jet fuel has dropped. Lagos and Abuja have a lower fare cos that’s where the main hub is. It’s not the same price you get in Lagos and Abuja that you get in Asaba, Kano, and Sokoto. I think the highest Jet A1 fuel is around N1,400 per litre,” Uloka said.

An official of the Airline Operators of Nigeria who spoke on condition of anonymity, noted that the refinery had helped reduced dollar demand, though the market remains sensitive to global oil price movements.

He warned that fluctuations are still expected because jet fuel pricing remains internationally benchmarked.

“The fact that Dangote is already producing now, has eased the pressure on the dollar. But that does not mean that what IATA is saying is not going to occur.

“Because it is a function of the fact that the markets fluctuate. And markets fluctuate in response to so many variables. The oil business is an international business. It is dollar-denominated. So, whatever shape the dollar takes will invariably affect our own production in terms of cost,” he added.

Even with production in Nigeria, crude purchases still reflect global pricing structures, he explained.

“Even though he is buying crude in Naira, he is buying it at the dollar-denominated rate. And that is only because governments intervened. He was still buying in dollars too. Even though he was producing in Nigeria,” said the official.

The AON official added that Dangote’s presence stabilised the market and helped drag prices down from earlier highs.

“His presence has brought down the cost. Before he came, JetA1 was already going for well over N1,700 per litre. But since he came, things are trying to calm down a little,” he added.

He stressed the need for more investments in refining to sustain affordability.

Reacting to the development, Air Peace spokesperson, Osifo-Whiskey Efe, said the airline supports any initiative that improves fuel supply stability and operational efficiency.

He noted that although Jet A1 is still pegged to international dollar pricing, domestic refining reduces reliance on imports and cushions FX-driven risks.

“At Air Peace, we welcome any development that has the potential to strengthen local supply chains and improve operational efficiency within the Nigerian aviation ecosystem.

“While Jet A1 is globally benchmarked in USD, increased local production can contribute to supply stability, reduce dependence on imports, and help minimise the indirect pressures airlines face due to exchange rate volatility,” she said.

Efe said airlines were still evaluating long-term pricing structures and the commercial reliability of locally produced fuel.

“It is still early to provide definitive cost projections, as final pricing mechanisms, distribution frameworks, and supply reliability for the local product are still being assessed industry-wide.

“However, in principle, a strong and efficient domestic supply chain should help reduce logistical costs and operational disruptions associated with import-dependent fuel sourcing,” she added.

Efe said fuel availability could shape the airline’s long-term planning once market conditions become clearer.

“Once the industry gains clarity on long-term pricing and delivery structures, airlines including Air Peace will be better positioned to evaluate the measurable cost impact.

“Our fleet and route expansion strategy is guided by long-term market demand, operational sustainability, and broader economic indicators.

“The prospect of a more stable fuel supply is certainly encouraging and aligns with efforts to strengthen local aviation infrastructure, but it is only one of several factors we consider in our planning.

“Air Peace continues to maintain a forward-looking growth strategy and will integrate any positive developments in fuel availability into our operational planning where relevant,” he said.(Punch)