Domestic Airlines Engage Dangote Refinery for Affordable JetA1 Fuel
Domestic airlines under the aegis of the Airline Operators of Nigeria (AON) are seeking to strike a deal with the management of Dangote Petrochemical Refinery to purchase JetA1 fuel at a more affordable rate.
This initiative has prompted some local operators to meet with refinery officials to finalize an agreement that would see them securing aviation fuel at N980 per litre. Presently, aviation fuel is priced between N1100 and N1250 per litre, contingent on the airport and the prevailing exchange rate.
Roland Iyayi, a top member of AON and Chief Executive Officer of Top Brass Aviation Limited, shed more light on the industry’s negotiations with the Dangote Group.
“The Airline Operators of Nigeria had a two, three-hour meeting about a month ago with the entire Dangote refinery management, including Dangote himself. The meeting resolved that Dangote was going to supply fuel directly to the local operators for about N980 per litre. What was required was to have the local distributors key into the arrangements. I guess the AON hasn’t established which distributors will be used for that initiative.”
Osita Okonkwo, Chief Operating Officer of United Nigeria Airlines, also remarked on the positive impact of the Dangote refinery on JetA1 prices.
“We don’t import directly; it is the suppliers that import and sell to us. They have been increasing their production, but I don’t think they have reached their optimum capacity yet. Dangote has started producing, and our group went to see him, but I don’t think they have reached their optimum capacity. The refinery brought down the price. Quite interesting to see what Dangote has done, he has brought down the price.”
Highlighting MRS filling stations as a key player in stabilizing fuel prices in Lagos and Abuja, Okonkwo added, “They are selling for now in Lagos and Abuja for the same price, so he has kind of stabilized the price. I think NNPC has also started getting involved. The fuel price started at N1050 per litre, but due to exchange rate adjustments, it has risen to about N1250 per litre now.”
Anthony Chiejina, spokesperson for the Dangote Group, confirmed that the company was producing aviation fuel and diesel at the new refinery.
“We have been producing aviation fuel simultaneously since the diesel rollout. It is a big congratulations to Nigeria. There is nothing like producing what we consume. There is nothing like value addition, and that is what we have done with this refinery. Otherwise, these guys will go and export and bring in low-quality. It is a big feat for Nigeria and a giant leap for the country and also for the continent.”
On the issue of price reduction, Chiejina stated, “Of course, it is expected that the price of aviation fuel will be cheaper than what it used to be.”
Local operators have also confirmed that the aviation fuel market is experiencing shifts in terms of prices due to the impact of the Dangote refinery.
