Anticipate a decrease in flight ticket prices with the recent reduction in Jet A1 costs, the fuel essential for aviation.
In an announcement made on Tuesday, Dangote Petroleum Refinery disclosed a price slash for diesel and aviation fuel.
The revised prices now stand at N940 and N980 per litre, respectively.
This price cut has raised optimism among airline industry representatives, leaders of travel agencies, and frequent flyers, all hoping for a potential drop in airfares.
The significance of aviation fuel in influencing ticket prices was emphasized by Kingsley Nwokoma, the President of the Association of Foreign Airlines and Nigeria’s Representative.
“Typically, airfares are expected to decline due to aviation fuel being a significant cost component. When you factor in all the financial elements that form your ticket price, it holds substantial weight,” Nwokoma explained.
Nwokoma indicated that the reduced prices could be attributed to the Dangote refinery’s presence, underscoring the necessity of a comprehensive analysis to gauge its impact on ticket costs.
“Should there truly be a reduction in Jet A1 prices, ticket fares must decrease, given that Jet A1 accounts for a substantial portion of operational expenses and ticket prices,” he noted.