Airline operators confirm Jet A1 purchase from Dangote

Airline Operators in Nigeria have confirmed that they are purchasing Jet A1 fuel from Dangote’s refinery.

The spokesperson for Airline Operators of Nigeria, Prof Obiora Okonkwo, told The PUNCH, “AON is already buying Jet A1 from Dangote a few months back.”

He explained that the cost of Jet A1 fuel varied depending on multiple factors, including location.

“The amount of Jet A1 varies from time to time and airport to airport,” he stated.

An industry official, speaking on the condition of anonymity, explained that the high cost of Jet A1, which was imported, prompted 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 there was a proposed price from Dangote’s side, the source noted that the issue had not been concluded.

“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 explained.

The source stated that the quantity of A1 fuel needed in the country fluctuates depending 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.

Recall that the Federal Government recently approved Dangote Refinery as the sole supplier of jet fuel to Nigeria’s airline operators.

The Minister of Aviation and Aerospace Development, Festus Keyamo, revealed that with the approval, the airline operators agreed to designate the Dangote refinery as the sole provider of jet fuel for the aviation sector.

The approval follows the Federal Government’s recent implementation of a naira-for-crude agreement with Dangote and other local refiners.