Nigerian airlines confirm purchasing Jet A1 fuel from Dangote Refinery, exploring local sourcing to reduce fuel costs in the aviation sector.
Nigerian airline operators have confirmed that they are now purchasing Jet A1 fuel from Dangote Refinery, marking a significant shift towards locally sourced aviation fuel.
This move is expected to help reduce the high cost of Jet A1, which has been primarily imported.
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Professor Obiora Okonkwo, spokesperson for the Airline Operators of Nigeria (AON), revealed that the association began buying Jet A1 fuel from Dangote Refinery a few months ago.
He noted that the price of the fuel varies depending on several factors, including location and market conditions.
“The amount of Jet A1 varies from time to time and airport to airport,” Okonkwo explained.
An industry insider, who preferred to remain anonymous, also disclosed that rising costs of imported Jet A1 prompted the aviation sector to explore alternatives, leading to discussions with Dangote Refinery.
“We met with Dangote and expressed our interest in working with them. The reason is simple: Jet A1 is too expensive because it is imported,” the source stated. “Sourcing Jet A1 from a Nigerian refinery could reduce the cost.”
The source further revealed that discussions with Dangote Refinery were ongoing, though certain issues, including a dispute between Dangote and the Nigerian National Petroleum Company Limited (NNPCL), needed to be resolved before final agreements could be reached.
“Dangote proposed a price, but it is not final until the argument with NNPC is resolved. We have not discussed quantities because we need to settle on a price first,” the insider added.
The quantity of Jet A1 fuel required fluctuates depending on the number of aircraft in operation. “Demand for Jet A1 depends on the number of aircraft flying. Some days, there may be eight planes in the air; other days, there could be fewer,” the source explained.
In a recent development, the Federal Government approved Dangote Refinery as the sole supplier of jet fuel for Nigeria’s aviation sector. This decision is part of a broader “naira-for-crude” agreement with Dangote and other local refineries aimed at stabilising the supply of essential fuel products within the country.
Festus Keyamo, Minister of Aviation and Aerospace Development, confirmed that airline operators had agreed to designate Dangote Refinery as their primary provider of Jet A1 fuel, in line with the government’s plan to foster local production and supply chains.
This shift towards locally sourced fuel is expected to offer much-needed relief to airline operators facing steep fuel costs, potentially bringing greater stability to Nigeria’s aviation industry.
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