“Airfare Will Crash”: Air Peace, Max Air, Aero, Others Meet Dangote, Propose New Fuel Price

“Airfare Will Crash”: Air Peace, Max Air, Aero, Others Meet Dangote, Propose New Fuel Price

  • Domestic airline operators have met Aliko Dangote and the management of the Dangote Refinery
  • The operators say they met with the company to strike an agreement for further reduction in aviation fuel price
  • They reportedly proposed N980 per litre to the Dangote management but said talks are still ongoing

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Local airlines under the umbrella of airline operators in Nigeria are seeking to strike a deal with the management of Dangote Refinery to purchase aviation fuel at an affordable rate.

Some local airline operators have met with the refinery officials to agree to buy aviation fuel at about N980 per litre.

Aviation fuel prices, Dangote refinery
Chairman of the Dangote Group, Aliko Dangote meets with airline operators to crash fuel prices Credit: NurPhoto / Contributor
Source: Getty Images

Airline operators propose N980 per litre

The refinery currently sells aviation fuel at between N1,100 and N1,250 per litre, depending on the airline and the current exchange rate.

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A top member of the association and chief executive officer of Top Brass Aviation Limited, Roland Iyayi, disclosed that the operators had a three-hour engagement with the refinery management and Aliko Dangote, chairman of the Dangote Group.

Iyayi disclosed that the meeting resolved that the refinery would supply fuel directly to the operators for about N980 per litre, adding that they also needed to bring onboard local distributors into the arrangements.

Punch reports that United Nigeria Airlines’s chief operating officer, Osita Okonkwo, disclosed that the Dangote refinery had crashed Aviation fuel prices.

Operators confirm crash in aviation fuel price

Legit.ng earlier reported that the airlines met with the Dangote group to discuss challenges causing the rise in commodity prices, which led to a hike in airfares. 

Obiora Okonkwo, the spokesperson for Airline Operators of Nigeria (AON), confirmed the reduction in the price of aviation fuel from the Dangote Refinery. 

Read also

New price of petrol emerges in Lagos, Abuja, Nassarawa, others as fuel scarcity persists

Experts say since Nigeria ended subsidies on fuel last year, the prices of petroleum products have risen. 

In February 2024, airline operators lamented the skyrocketing cost of aviation fuel, saying the development is crucial and requires immediate intervention to forestall the sector's collapse. 

Okonkwo said the refinery had started producing, and AON met with Dangote, adding that the refinery had crashed the commodity’s price.

Air passengers lament hike in airfares

The development comes amid a hike in fares by local airlines, who blame the activities of touts and ticket racketeers.

Air passengers in Nigeria lament the takeover of Nigeria’s airports by touts, who say they are responsible for the high cost of air tickets in Nigeria. 

The development comes despite passengers paying as high as N250,000 for a one-hour flight from Lagos to Abuja.

Dangote Refinery confirms date for release of petrol

Legit.ng previously reported that Dangote Industries Limited reiterated that production of Premium Motor Spirit (PMS), commonly known as petrol, would commence at the Dangote Refinery in July 2024.

Read also

Dangote refinery confirms date for release of petroleum product for Nigerians to buy

Devakumar Edwin, vice president of Oil and Gas at Dangote Industries Limited, stated this during a visit by the S&P Global team to the Dangote Refinery in Ibeju-Lekki, Lagos.

Earlier, Legit.ng reported that Dangote Refinery set July 10–15, 2024, as dates for petrol product supply to the Nigerian market.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng

Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng