Airfare to crash further as Air Peace, Max Air, Dana Air, Others Confirm Reduction in Aviation Fuel Price
The spokesperson for Airline Operators of Nigeria (AON), confirmed the reduction in the price of aviation fuel
Nigerians are expected to see a decrease in airfare prices as airline operators in Nigeria have confirmed a drop in aviation fuel costs. This change comes as the Dangote refinery has started producing aviation fuel, also known as JetA1.
The airlines held discussions with the Dangote Group to address the challenges that have led to the increase in commodity prices, resulting in higher airfares.
Since Nigeria ended fuel subsidies last year, the prices of petroleum products have been on the rise. In February 2024, airline operators expressed concerns about the soaring costs of aviation fuel, stating that immediate intervention was necessary to prevent a collapse of the sector. They highlighted that the fluctuating FX rates and the rising price of JetA1 were disrupting their operations and stability.
According to Legit.ng, in April this year, aviation operators received some relief when the Dangote refinery announced a reduction in diesel and aviation fuel prices. The refinery decreased the price of aviation fuel from N1,300 per liter to a new lower price, with the reduction applicable to customers purchasing five million liters and more.
Additionally, the facility partnered with MRS Oil to ensure that consumers have access to affordable fuel at all MRS filling stations.
In a report by the Punch newspaper, Obiora Okonkwo, the spokesperson for Airline Operators of Nigeria (AON), confirmed the reduction in the price of aviation fuel.
This development comes as foreign airlines have lowered their airfares below those charged by Nigeria’s Air Peace. A previous report by Legit.ng revealed that foreign airlines reduced prices after the Nigerian government cleared the FX backlog owed to them.
Airline operators have suggested that Nigeria should explore alternatives for aviation fuel, considering the high cost of imports.
They called on the Nigerian government in a meeting on October 18, 2023, in Abuja to develop and use Sustainable Aviation Fuel (SAF), Low Carbon Available Fuel, and other transparent fuel sources in Nigeria.
Captain Roland Iyayi, speaking on behalf of Airline Operators of Nigeria, mentioned that the country is well-positioned to drive alternative fuel sources for the aviation industry by exploring palm oil.
, confirmed the reduction in the price of aviation fuel){kind=link}