Airline Operators Share Benefits of Buying Fuel From Dangote Refinery
- Nigerian airline operators have confirmed the direct purchase of Jet A1 fuel from the Dangote Refinery
- They are excited about the development and believe it will go along way in reducing the cost of operations
- The Federal Government consider Dangote Refinery as an important supplier of jet fuel to Nigerian airlines
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerian airline operators have confirmed they are now purchasing Jet A1 fuel from the Dangote Refinery, a significant development for the country’s aviation sector.
This move follows months of negotiations as local carriers sought to reduce the high costs of importing aviation fuel.
Source: Getty Images
Prof. Obiora Okonkwo, the spokesperson for the Airline Operators of Nigeria (AON) said Dangote is already selling Jet A1 fuel to airlines.
On the cost, he added that the price fluctuates based on several factors, including location.
Punch reports that more airlines are now patronising Dangote for fuel due to the high import costs of Jet A1 fuel.
An official was quoted as saying:
“Jet A1 is too expensive because it is imported, and we indicated our interest in working with Dangote to reduce this cost.
"Sourcing Jet A1 from a Nigerian refinery would likely reduce the cost. f we can get enough from a Nigerian refinery, it should be less expensive than when imported."
Dangote sole supplier of Jet A1 fuel
In an earlier report, Festus Keyamo, the minister of aviation and aerospace development, asked airlines operating in Nigeria to buy jet fuel from the Dangote refinery if they wish.
Keyamo stated that the action is timely given that Dangote and the federal government recently implemented a naira-for-crude arrangement.
In his X account, the minister stated that the Airline Operators of Nigeria “voluntarily“ chose the Dangote Refinery as their preferred supplier of Jet A1 fuel without the influence of the government.
Dangote Refinery confirms date for release of petroleum
Legit.ng reported that Dangote Industries Limited has reiterated that production of Premium Motor Spirit (PMS), commonly known as petrol, will commence at the Dangote refinery in July 2024.
Devakumar Edwin, vice president of Oil and Gas at Dangote Industries Limited, stated this during a visit by the S&P Global team to the Dangote Refinery in Ibeju-Lekki, Lagos.
Earlier, Legit.ng reported that Dangote refinery set July 10–15, 2024, as the dates for supplying petrol products to the Nigerian market.
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Source: Legit.ng
