Domestic Airlines ‘May’ Slash Ticket Prices As Dangote Refinery Begins Supply

In a potential reprieve for air travelers, domestic airlines may soon reduce ticket prices due to the impending supply of aviation fuel (Jet A1) by Dangote Refinery. This development comes after a sustained four-year increase in jet fuel prices, which forced indigenous carriers to hike ticket prices to stay afloat.

The 12 scheduled airlines, including Air Peace and Aero Contractors, had jointly agreed to a 100% airfare increase on February 20, 2022, to meet operational costs. However, with the anticipated drop in Jet A1 prices, passengers may soon enjoy lower airfares.

According to Captain Ado Sanusi, Managing Director of Aero Contractors, while the current price of Jet A1 has been steady, a price decrease would be welcome. “If the price drops, whether from Dangote refinery or external sources, we’ll appreciate it,” he said. The current price of jet fuel averages between N1,200 and N1,400 per liter.

Sanusi explained that a price drop depends on Dangote Refinery’s selling price. “If they sell below the market price, it’ll drop. But if not, there won’t be a price reduction.” He added that consistent supply from refineries like Port Harcourt, Warri, and Dangote could impact prices, but this would require a steady supply over several weeks and months.

This development from Dangote Refinery could bring relief to air travelers as domestic airlines adjust to the new price dynamics in the aviation fuel market. As the aviation industry awaits the imminent supply of Jet A1, passengers may soon enjoy more affordable flights.

Source:- Vanguard
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