Following the introduction of a new pricing benchmark by the Dangote Petroleum Refinery, which set the gantry price of aviation fuel (Jet A1) at N1,820 per litre, Nigeria’s aviation industry is facing increasing cost pressures.
Improving transparency and resolving long-standing inefficiencies in the jet fuel supply chain are the goals of the action, which also includes the start of daily price publication.
This coincides with the refinery’s announcement of the redeployed engineers’ recall.
The development, according to industry stakeholders, highlights the ongoing financial strain that domestic airlines—many of which are already struggling with rising operating costs—are facing.
In a market that has historically been marked by opacity and volatility, the refinery’s pricing structure offers a more predictable framework, according to data from Petroleumprice.ng.
Aviation fuel continues to be the biggest expense factor for Nigerian carriers, making up more than 40% of all operating costs. Operators claim that although the new N1,820 per litre benchmark offers clarity, it still reflects high cost levels that continue to strain airline finances.
The growing discrepancy between refinery prices and what airlines ultimately pay at the point of consumption has been a frequent source of concern for Air Peace Chairman Allen Onyema.
Given that local jet fuel prices have increased disproportionately to global trends in crude oil, he cautioned that the current pricing environment could destabilise the aviation sector if left unchecked.
Onyema stated, “The truth is that marketers must be called to account,” citing reports that, despite comparatively mild fluctuations in global oil markets, aviation fuel prices have increased by as much as 300%.
“This decision by Dangote is to ensure transparency and stakeholders can actually see for themselves where the alleged racketeering is coming from,” an anonymous Dangote source told Daily Trust.
Following what management referred to as a conditional pardon following internal disciplinary actions connected to operational disruptions, Dangote Petroleum Refinery has authorised the recall of engineers who had previously been redeployed across its business units.
The decision was made after a thorough review process and multiple appeals from reputable people, stakeholders, and the engineers, the company said in an internal communication to employees. The refinery stated that although it had previously taken steps to safeguard operations and maintain organisational standards, it has now chosen to give the employees another chance.
A memo signed by Devakumar Edwin, Group Vice President, Oil & Gas, states that all impacted employees will be invited to a meeting and then reassigned to return to work at the refinery.
According to a statement, the recall also applies to people who did not use the company’s earlier redeployment options.
While reiterating that discipline, professionalism, and adherence to corporate values remain non-negotiable, management emphasised that the move reflects both a commitment to fairness and a belief in second chances.
“This choice was difficult to make. It serves as a clear reminder that loyalty, professionalism, and adherence to organisational standards are non-negotiable, and it also reflects our belief in second chances.
With immediate effect, all engineers who were previously transferred to other business units will be invited to a meeting and given the chance to work at our petroleum refinery. Those who did not take advantage of the earlier redeployment opportunity would fall under this category.
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