Airline Operators in Nigeria have confirmed their purchase of Jet A1 fuel from Dangote’s refinery.
The spokesperson for Airline Operators of Nigeria, Prof Obiora Okonkwo, said, “AON is already buying Jet A1 from Dangote a few months back.”
He explained that the cost of Jet A1 fuel varies based on several factors, including location, according to The Punch.
“The amount of Jet A1 varies from time to time and airport to airport,” he noted.
An industry official, who requested to remain anonymous, explained that the rising costs of imported Jet A1 fuel have driven the industry to explore local sourcing options.
“We met with Dangote, and we indicated our interest in working with them. The reason we indicated our interest in working with them is because Jet A1 is too expensive, and it continues to be expensive because it is imported,” the official stated.
The official said that sourcing Jet A1 from a Nigerian refinery would likely reduce the cost, noting, “If we can get enough from a Nigerian refinery, it should be less expensive than when imported.
“When we were still discussing, Dangote and NNPC started an argument. Dangote said until the matter is resolved, it cannot say anything to us. So it has not given us any feedback.”
While a proposed price has been put forward by Dangote, the source indicated that the negotiations are still ongoing and have not yet been finalized.
“As per quantity, we have not discussed that because discussions did not go forward; we can’t go to that stage without a price. Yes, he proposed a price, but at the moment, that price is not sacrosanct until the argument it has with NNPC is sorted out,” he expounded.
The source stated that the demand for Jet A1 fuel in the country fluctuates based on the number of aircraft in operation.
“The demand for Jet A1 is a function of capacity. Today, I might have eight aircraft flying, tomorrow I might have six. My demand for today will be less than my demand for yesterday,” the official declared.
The Federal Government has recently designated Dangote Refinery as the sole supplier of jet fuel to Nigeria’s airline operators.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced that with this approval, airline operators have agreed to exclusively source their jet fuel from the Dangote refinery for the aviation sector.
