Nigerians are set to experience airfare crashes as airline operators in Nigeria confirmed a reduction in aviation fuel prices.
The development comes as the Dangote refinery began production of aviation fuel, also known as JetA1.
The airlines met with the Dangote group to discuss challenges causing the rise in commodity prices, which in turn led to a hike in airfares.
Since Nigeria ended subsidies on fuel last year, the prices of petroleum products have risen.
In February 2024, airline operators lamented the skyrocketing cost of aviation fuel, saying the development is crucial and requires immediate intervention to forestall the sector’s collapse.
According to the airlines, the fluctuation in FX rates and the rising price of JetA1 were disrupting their operations and stability.
TimesNow.com.ng reported that aviation operators had some reprieve in April this year when the Dangote refinery announced a crash in diesel and aviation fuel prices.
The refinery slashed the price of aviation fuel from N1,300 per litre to N940, adding that the reduction applies only to customers buying five million litres and more.
The facility also partnered with MRS Oil to ensure consumers get affordable fuel in all MRS filling stations.
According to Punch, Obiora Okonkwo, the spokesperson for Airline Operators of Nigeria (AON), confirmed the reduction in the price of aviation fuel.
The development comes as foreign airlines reduced their airfares below the one charged by Nigeria airline, Air Peace.
A previous report by TimesNow.com.ng shows that foreign airlines crashed prices following the Nigerian government’s payment of the FX backlog owed to them.
TimesNow.com.ng previously reported airline operators said Nigeria was mature enough to find alternatives for aviation fuel, also known as JetAI, considering the high cost of imports.
The operators called on the Nigerian government Wednesday, October 18, 2023, in Abuja at a meeting on developing and using Sustainable Aviation Fuel (SAF), Low Carbon Available Fuel, and other transparent fuel sources in Nigeria.
Captain Roland Iyayi, who spoke on behalf of Airline Operators of Nigeria, said the country was in a better place to drive alternative fuel sources for the aviation industry by exploring palm oil.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
