Jet Fuel Still Above N2,000 Despite Dangote Price Cut

Despite the Dangote Refinery’s reduction of Jet A1 price to ₦1,650 per litre, aviation fuel continues to sell at ₦1,900–₦2,000 per litre across Nigeria, checks by Daily Trust revealed.

The refinery announced the cut on Monday, alongside a 30-day interest-free credit facility backed by bank guarantees and a shift from dollar-denominated pricing to naira-based transactions, aimed at easing airline costs.

However, retail prices remain high. In Abuja and Kano, Jet A1 sold at ₦2,000 per litre, while in Lagos, prices ranged between ₦1,910 and ₦1,925. Some marketers even issued letters to airlines notifying them of further price reviews.

One marketer explained the adjustment was due to “continued volatility in the petroleum products market, particularly the increase in ex-depot pricing and associated supply chain costs.”

The NMDPRA pegged aviation fuel prices at ₦2,037 per litre in Abuja and set a Lagos band of ₦1,760–₦1,988, but operators say the disparity persists.

“The announcement by Dangote gave us hope, but what we are seeing in the market is different. Most marketers are yet to adjust,” one airline operator said.

The high cost of Jet A1 has forced airlines to cut flight frequencies, with some warning of possible route reductions or fare hikes.

The crisis has been worsened by the U.S.–Israel war in Iran and the closure of the Strait of Hormuz, which handles one-fifth of global fuel supply.

Analysts note that while Dangote’s intervention was expected to drive competition, factors such as logistics, forex volatility, taxes, storage costs, and old stock purchased at higher rates are preventing immediate retail price changes.

Aviation analyst Capt. Samuel Caulcrick urged the Federal Competition and Consumer Protection Council (FCCPC) to investigate marketers’ profit margins.

“With ₦1,650 per litre as ex-gantry price, the only margins should be profit and logistics. FCCPC should ensure transparency so the public is not exploited,” he said.