Travellers across Nigeria may soon find relief in their wallets as the price of Jet A1, the primary fuel used by airlines, significantly drops.
The latest announcement by Dangote Petroleum Refinery on Tuesday has set the stage for potentially lower airfares, offering hope to both airline operators and frequent flyers.
Naija News had earlier reported that Dangote Petroleum Refinery unveiled a substantial price reduction for diesel and aviation fuel, slashing the rates to N940 and N980 per litre, respectively.
This development marks a notable decrease in the cost of aviation fuel, a key component in determining ticket prices for air travel.
The news has ignited optimism among various stakeholders within the aviation industry, including airline representatives, travel agency leaders, and frequent travellers.
Many anticipate that the reduction in Jet A1 prices could translate into more affordable airfares, making air travel more accessible and appealing to the Nigerian populace.
While speaking with Punch, the President of the Association of Foreign Airlines and Representative in Nigeria, Kingsley Nwokoma, emphasized the pivotal role of aviation fuel prices in shaping ticket costs.
He noted that any significant fluctuations in fuel prices directly impact airlines’ operational expenses, ultimately influencing fare structures.
The price cut announced by Dangote Petroleum Refinery is a welcome development for airlines grappling with soaring operational costs amid economic challenges.
With fuel expenses constituting a significant portion of airlines’ operational budgets, any reduction in Jet A1 prices is poised to alleviate financial pressures and potentially stimulate growth within the aviation sector.
Moreover, the downward trend in aviation fuel prices reflects broader efforts to enhance efficiency and competitiveness within Nigeria’s aviation industry.
As airlines stand to benefit from reduced operational costs, passengers may soon reap the rewards in the form of more affordable air travel options and enhanced connectivity across domestic and international routes.
While lower airfares offer promising prospects for travellers, industry experts caution that other factors, such as regulatory fees and taxes, influence ticket pricing.
Nevertheless, Dangote Petroleum Refinery’s latest price adjustment signals a positive trajectory for the aviation sector, paving the way for a more accessible and sustainable air travel landscape in Nigeria.
“Normally, airfares would drop because aviation fuel is a big component. When you put all the financial components together that make up your ticket, it’s a very significant factor,” he said.
Nwokoma noted that the reduction might be linked to the presence of Dangote refinery and stressed the need for a holistic approach to understanding its impact on ticket prices.
“If Jet A1 is truly reduced in price, then ticket prices must come down because Jet A1 is a major component of operational costs and ticket costs.”
United Nigeria Airlines spokesperson Achilleus Uchegbu shared similar sentiments, stating that everyone expects airfares to drop with the reduction in aviation fuel prices.
“Although I do not know how soon the price drop will happen, we are hopeful,” he said.
The President of The National Association of Nigeria Travel Agencies, Susan Akporiaye, spoke with Punch and pointed out the potential benefits of lower airfares.
“The expectation is for the fares to drop, and it will result in more people travelling, which gives my members more tickets to issue, increasing income,” she said.
Frequent air traveller and CEO of Prestige Pharmacy, Sandra Ebele, welcomed the news, noting the positive impact it could have on businesses and passenger affordability.
“As a frequent air traveller, I’m thrilled to hear about the drop in aviation fuel prices from N1,400 to N980. This should lead to lower operating costs for airlines, which could translate into more affordable ticket prices for passengers and business owners like me, which will, in turn, affect my business,” she said.
However, Ebele cautioned that reduced fuel costs might not immediately result in lower ticket prices due to other factors like demand, competition, and operational expenses.
Another frequent traveller, Ifeanyi Samuel, expressed a similar perspective, emphasizing the complexities of airline operations.
However, he is optimistic about its potential positive effect throughout the industry.
“It might even inspire airlines to add new routes or increase the frequency of existing ones, which would offer greater flexibility for my business travel need.”
“Also, I’d like to add that at least I get to save more from the money I should have budgeted for a plane ticket anytime I have a business appointment,” he said
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