Domestic airline operators are poised to lower ticket prices for passengers due to the forthcoming availability of aviation fuel, Jet A1, from Dangote Refinery.
The continuous surge in jet fuel prices has compelled local carriers to raise ticket fares in order to sustain their operations.
On February 20, 2022, the consortium of 12 scheduled airlines, including Air Peace, Aero Contractors, Arik Air, Max Air, Azman, Dana Air, Ibom Air, Green Africa, Overland, Rano Air, ValueJet, and United Nigeria Airlines, collectively agreed to double airfares to cover operational expenses.
Nonetheless, reports from Vanguard suggest that there might be a potential drop in airfares as operators foresee a possible decline in the Jet A1 price.
Captain Ado Sanusi, the Managing Director of Aero Contractors, informed Vanguard that while the Jet A1 price has remained relatively stable, airlines would welcome a reduction in costs.
Sanusi remarked, “As operators, we monitor the price of Jet A1, irrespective of the refinery source. Any decrease, whether from Dangote Refinery or other sources, would be beneficial to us.”
“The price stability guides our financial projections, with jet fuel costs ranging from an average of N1,200 to N1,400 per liter,” he added.