Domestic airlines under the aegis of Airline Operators of Nigeria are seeking to enter a deal with the management of Dangote Petrochemical Refinery to buy JetA1 at an affordable rate.

As a result, some local operators have met with the refinery officials to seal an agreement that would see them get aviation fuel at N980/litre. Currently, aviation fuel goes between 1100-1250 per litre depending on the airport and the prevailing exchange rate.

A top member of AON and Chief Executive Officer of Top Brass Aviation Limited, Roland Iyayi, provided further insights into the industry’s engagement with Dangote Group.

He said, “The Airline Operators of Nigeria had a two, three-hour meeting with about a month ago with the entire Dangote refinery management, including Dangote himself.

“The meeting resolved that Dangote was going to supply fuel directly to the local operators for about N980 per litre. What was required was to have the local distributors key into the arrangements. I guess the AON hasn’t established which distributors will be used for that initiative.”

Also speaking, Chief Operating Officer of United Nigeria Airlines’ Osita Okonkwo, said the coming onstream of Dangote refinery had helped to lower the price of Jet A1.

“We don’t import directly; it is the suppliers that import and sell to us. They have been increasing their production, but I don’t think they have reached their optimum capacity yet.

“Dangote has started producing and our group went to see him, but I don’t think they have reached their optimum capacity. The refinery brought down the price.  Quite interesting to see what Dangote has done, he has brought down the price.

Okonkwo highlighted MRS filling stations as a major player in stabilising fuel prices in Lagos and Abuja. “They are selling for now in Lagos and Abuja for the same price, so he has kind of stabilised the price. I think NNPC has also started getting involved. The fuel price started at N1050 per litre, but due to exchange rate adjustments, it has risen to about N1250 per litre now,” he explained.

Also speaking on the issue, the spokesperson for Dangote Group, Anthony Chiejina, confirmed the company was producing aviation fuel and diesel at the new refinery.

“We have been producing aviation fuel simultaneously since the diesel rollout. It is a big congratulations to Nigeria. There is nothing like producing what we consume.

“There is nothing like value addition, and that is what we have done with this refinery. Otherwise, these guys will go and export and bring in low-quality. It is a big feat for Nigeria and a giant leap for the country and also for the continent.

Speaking on the issue of price reduction in aviation fuel, he said, “Of course, it is expected that the price of aviation fuel will be cheaper than what it used to be,” Chiejina stated.

Local operators have also confirmed that the aviation fuel market is experiencing shifts in terms of prices due to the impact of the Dangote refinery.