There are strong indications that domestic airlines operators may reduce ticket prices for passengers due to the imminent supply of aviation fuel, otherwise known as Jet A1, by Dangote Refinery.

Considering that there had been sustained increase in the price of jet fuel over the last four years, indigenous carriers were forced to enhance operations by raising ticket prices.

The 12 scheduled airlines, including Air Peace, Aero Contractors, Arik Air, Max Air, Azman, Dana Air, Ibom Air, Green Africa, Overland, Rano Air, ValueJet and United Nigeria Airlines, on February 20, 2022, jointly agreed to increase airfares by 100 per cent to meet up with operational costs.

However, with operators looking at a possible crash in the price of Jet A1, passengers might experience a drop in airfares, Vanguard has gathered.


Projections

The Managing Director of Aero Contractors, Captain Ado Sanusi, told Vanguard that although the price of Jet A1 had been steady, airlines would appreciate a price decrease.

Sanusi said: “As operators, we have no idea of the refinery where marketers buy Jet A1, but what we look at is the price. If the price drops, whether it is from Dangote refinery or refineries outside the country, we will appreciate it.

”The price has been steady and that is what we use in making our projections. The price of jet fuel has been between an average price of N1,200 and N1,400 per litre.


Price drop

On whether the imminent supply could result in a price drop, he added: “It depends on what price Dangote refinery sells Jet A1. If it sells below the market price, then, of course, it would drop price.

”However, if it is not selling below the market price, there won’t be a drop in price. Meanwhile, it is dependent on what crude oil is being sold to him and how much it costs him to refine. What we think will bring down the price of Jet A1 is the cost of freight.


Immediate impact

“If Port Harcourt, Warri and Dangote refineries could give us enough jet A1 for some time and we have steady prices, it will definitely have an impact on price. However, that won’t be possible in a few days. It has to be consistent for a few weeks and even months.”

AqualinaXYZ:
Tinubu is a vagabond




Useless frog

AqualinaXYZ:
Tinubu is a vagabond




Useless frog

fuckJones:
apart from insults what else do you learned from your mom?

Lawalemi:
Without Dangote Refinery, what can Nigeria do?

Dangerously, we are beginning to commit the future of Nigeria into the hand of one individual

Racoon:
Nice one! Why is the energy needs of this nation being dependent on the Dangote refinery? Why is the government own not working? After all the hype, PH refinery lies and propaganda was bursted despite all the TAM and overhead costs incurred.

vengertime:
Whatever you do avoid Arik airline, they owe me a refund twice , apparently they brandish cheap tickets and a day or on the day of travel you will receive SMS that the flight has been cancelled.

They will give you form to fill and that's where you had enter ONE CHANCE. AMCON( Agency that run the airline) doesn't refund shitt.

I got a flight cancelled once on Airpeace and Dana airline and they paid me in less than 24 hours.

Arik should be sold to even Max Air or Dana airline so that this madness would stop.

AqualinaXYZ:
Tinubu is a vagabond




Useless frog