Dangote Refinery Fixes Aviation Fuel Price at ₦1,820 per Litre

Nigeria’s largest private refinery, the Dangote Petroleum Refinery, has announced a new gantry price of ₦1,820 per litre for aviation fuel, a development expected to impact airline operations and ticket pricing across the country.

The refinery, owned by billionaire industrialist Aliko Dangote, confirmed the price adjustment as part of its ongoing supply strategy aimed at stabilising the domestic market and reducing dependence on imported refined petroleum products. The gantry price refers to the cost at which bulk buyers, including airline operators and fuel marketers, purchase products directly from the refinery.

Industry stakeholders say the new price reflects prevailing global crude oil costs, foreign exchange pressures, and logistics expenses. Aviation fuel, also known as Jet A1, has remained a critical cost component for airlines, accounting for a significant portion of operational expenditure.

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Operators in Nigeria’s aviation sector have long struggled with fluctuating fuel prices, which have led to periodic increases in airfares and, in some cases, flight disruptions. With the Dangote refinery now supplying locally refined aviation fuel, expectations were high that prices would moderate. However, the ₦1,820 per litre rate suggests that cost pressures persist despite local production.

Analysts note that while the price may appear high, it could still offer some stability compared to the volatility associated with imports. They argue that consistent supply from a domestic source may reduce scarcity and help airlines plan more effectively.

Airline operators are likely to review their pricing structures in response to the new rate. Some industry players warn that unless there is further intervention or a reduction in associated costs, passengers may face higher ticket prices in the coming weeks.

The development also comes as Nigeria continues efforts to achieve energy security and reduce its reliance on imported petroleum products. The Dangote refinery, with a capacity of 650,000 barrels per day, is central to this strategy and is expected to significantly alter the country’s fuel supply dynamics.

Market observers say the real impact of the new aviation fuel price will become clearer in the coming weeks as supply volumes stabilise and airlines adjust to the new pricing regime. For now, attention remains on how the aviation industry will absorb or pass on the additional costs to consumers.