Domestic airline operators in Nigeria have welcomed the reduction in aviation fuel price by the Dangote Petroleum Refinery, describing the move as a major relief for carriers battling rising operational costs and mounting financial pressure.
The operators said the reduction in the price of aviation fuel, also known as JetA1, would not only ease the burden on airlines but could also eventually translate into improved ease of doing business for the entire ecosystem if the trend is sustained.
Speaking about the development, United Nigeria Airlines spokesperson, Uloka Chibuike, said domestic airlines had long been operating at unsustainable margins despite public perception that ticket prices had increased significantly.
Chibuike said, “There was never an increase in airfares. If airlines still have ticket classes of N95,000, it simply means there was never any increase. Instead, airlines have been operating at a loss.”
The optimism among operators comes amid weeks of growing concern over the sharp rise in aviation fuel prices in Nigeria, which airlines said had increased disproportionately compared to global crude oil prices.
Under the umbrella of the Airlines Operators of Nigeria, domestic carriers had repeatedly warned that the rising cost of Jet A1 was becoming unsustainable, noting that while global crude prices recorded moderate increases of about 30 per cent, aviation fuel prices in Nigeria surged far beyond that margin.
The operators said they had continued to absorb the rising costs over the past four weeks in order to sustain flight operations nationwide, despite worsening financial strain and persistent foreign exchange challenges.
Recently, Ibom Air raised fresh concerns over the deepening crisis, revealing that it now spends about ₦7.6 million to fuel a single flight.
The disclosure underscored the scale of pressure confronting domestic carriers, with industry stakeholders warning that continued increases in aviation fuel prices could lead to severe disruptions in flight operations if urgent interventions are not sustained.
However, the UNA publicist added that the reduction in fuel prices would provide much-needed breathing space for operators who have struggled to maintain services amid skyrocketing costs. “The reduction, perhaps, will give operators some breath,” he added.
Also sharing his view, the Managing Director of Aero Contractors, Capt Ado Sanusi, described the development as a welcome relief across the aviation value chain, noting that passengers would ultimately benefit from lower fuel costs.
“Any price reduction is a relief to operators and everybody within the ecosystem. Because as the prices of fuel reduce, the flying public will also experience the same relief,” Sanusi said.
He commended the refinery for what he described as transparent pricing, saying the publication of fuel prices on its website would help curb arbitrary market practices.
Sanusi added that transparency in pricing would discourage fuel marketers from exploiting airlines through arbitrary charges.
He stated, “One of the things we have been advocating is transparent pricing, and we thank Dangote Refinery for being very transparent. It publishes prices on its website for everybody to see and compare with what is obtained in other parts of the world.
“I don’t think marketers will be able to take undue advantage anymore. If it was done in the past, it can also be checked now because the prices are publicly available and everybody already knows what the rates are.”
The PUNCH