Airline Operators in Nigeria have confirmed that they are sourcing Jet A1 fuel from Dangote’s refinery, marking a significant shift in the country’s aviation fuel supply chain.
According to The PUNCH, the spokesperson for the Airline Operators of Nigeria, Prof. Obiora Okonkwo, stated, “AON is already buying Jet A1 from Dangote a few months back,” highlighting the ongoing collaboration.
Okonkwo elaborated that the price of Jet A1 fuel can fluctuate based on various factors, particularly geographical location.
“The amount of Jet A1 varies from time to time and airport to airport,” he explained, underscoring the complexities of fuel pricing in the aviation sector.
An industry insider, who spoke on the condition of anonymity, pointed out that the soaring costs associated with imported Jet A1 fuel prompted the need for local alternatives.
“We met with Dangote, and we indicated our interest in working with them. The reason we indicated our interest in working with them is because Jet A1 is too expensive, and it continues to be expensive because it is imported,” the official stated, reflecting the industry’s concern over fuel expenses.
The official expressed optimism that sourcing Jet A1 from a Nigerian refinery could lead to cost reductions. “If we can get enough from a Nigerian refinery, it should be less expensive than when imported,” they noted. However, discussions between Dangote and the Nigerian National Petroleum Corporation (NNPC) have stalled progress, with the source adding, “When we were still discussing, Dangote and NNPC started an argument. Dangote said until the matter is resolved, it cannot say anything to us. So it has not given us any feedback.”
While a proposed price was mentioned, the source emphasized that negotiations remain incomplete.
“Yes, he proposed a price, but at the moment, that price is not sacrosanct until the argument it has with NNPC is sorted out,” they explained.
The demand for Jet A1 fuel is inherently variable, contingent upon the number of aircraft in operation.
“The demand for Jet A1 is a function of capacity. Today, I might have eight aircraft flying, tomorrow I might have six. My demand for today will be less than my demand for yesterday,” the official clarified, illustrating the dynamic nature of airline operations.
In a notable development, the Federal Government has recently designated Dangote Refinery as the exclusive supplier of jet fuel for Nigeria’s airline operators.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced this decision, confirming that the airline operators have accepted Dangote refinery’s role as the sole provider of jet fuel for the aviation sector.
This move follows the Federal Government’s implementation of a naira-for-crude agreement with Dangote and other local refiners, aimed at bolstering local fuel production and stabilizing costs for the airline industry.
