Uche Amunike
Lifeandtimes News Writer
Domestic airlines in Nigeria may soon reduce ticket fares following the decision by the Dangote Refinery to slash the price of aviation fuel, also known as Jet A1, from N1,750 to N1,650 per litre.
The development is already generating excitement among airline operators and fuel marketers, many of whom believe the move could significantly reduce operating costs and make air travel more affordable for Nigerians.
Earlier this week, Dangote Refinery announced the reduction in aviation fuel prices as part of efforts to ease pressure on airline operators and guarantee uninterrupted fuel supply across the country. In addition to the price cut, the refinery also introduced a 30-day interest-free credit facility for airline operators and marketers.
Industry stakeholders say one of the biggest advantages of the new arrangement is that aviation fuel is now being sold in Naira, unlike in the past when marketers had to source scarce foreign exchange to purchase the product from Dangote Refinery.
Chairman of Ndano Energy, Chris Ndulue, confirmed that his company had already purchased its first batch of Jet A1 from Dangote Refinery at the new price. Speaking in a telephone interview, he expressed satisfaction with both the price reduction and the naira-based transaction system.
According to him, the reduction represents a major relief for the aviation sector and should ultimately benefit passengers through lower ticket fares.
Ndukwe stated that his company intends to sell aviation fuel to airlines at reduced prices, noting that lower operational costs should encourage airlines to cut fares and attract more passengers.
He explained that before the recent crisis involving Iran, aviation fuel sold for around N900 per litre, stressing that the earlier hike was largely influenced by global tensions and rising crude oil prices.
The aviation fuel marketer also projected that prices may decline further in the coming weeks, especially as tensions in the Middle East begin to ease. He maintained that lower fuel costs would encourage more Nigerians to choose air travel instead of enduring risky road journeys.
Despite the reduction announced by Dangote Refinery, investigations revealed that domestic airfares remain relatively high on many routes. Flights from Lagos to Abuja still average around N200,000 for a one-hour trip, while tickets from Lagos to Chinua Achebe Cargo Airport in Umueri, Anambra State, have risen to as much as N270,000 for one-way travel.
However, some operators such as Enugu Air have reportedly introduced more affordable fares ranging from N90,000 to N120,000 on routes including Lagos to Enugu and Lagos to Owerri.
According to observers, the high cost of tickets is partly driven by increasing demand for air travel, especially as insecurity continues to affect road transportation in different parts of the country.
Political activities ahead of next year’s elections are also contributing to the growing demand for flights. Airlines have confirmed a noticeable increase in passenger bookings across several domestic destinations.
Spokesman for Air Peace, Efeoghene Osifo-Whiskey, disclosed that routes such as Anambra and Owerri have experienced significant spikes in demand, especially during political party primaries.
As for Industry experts, they opined that although Dangote Refinery’s fuel price reduction may not immediately trigger a drastic drop in fares, it is expected to gradually stabilise operational costs and improve the overall aviation sector in Nigeria.
