Nigeria’s Dangote refinery is benefiting from high jet fuel margins while domestic airlines face severe cost pressures that have triggered shutdown threats and government intervention.
Nigeria’s Dangote refinery is benefiting from record jet fuel margins as it largely exports output, while domestic airlines face soaring costs that have pushed them to threaten a halt in operations. The refinery, Africa’s largest, is now fully operational at 650,000 barrels per day and is central to Nigeria’s fuel self-sufficiency drive.
Despite improved local supply, deregulated pricing has kept fuel costs among the highest in Africa. The Airline Operators of Nigeria said prices have climbed to 3,300 naira per litre, nearly triple February levels, while regulators said Dangote sells jet fuel at about 1,879 naira per litre.
Amid rising global energy disruption linked to the Middle East conflict, Nigeria’s government has approved relief measures and ordered talks with airlines to ease costs and prevent a shutdown of flight operations.