The refinery disclosed the reduction in a statement issued on Tuesday, saying the intervention was aimed at supporting airline operations and ensuring stable fuel supply across the country.

The company also announced a 30-day interest-free credit facility for marketers and airline operators backed by bank guarantees, alongside its transition from dollar-based pricing to a naira-denominated structure.

“These interventions come amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses,” the refinery said.

Airline operators have repeatedly warned that rising Jet A1 prices were pushing airlines deeper into financial strain and threatening the sustainability of flight operations.

We had extensively reported on the impact of soaring aviation fuel prices on Nigeria’s aviation sector, including increased flight delays, cancellations, operational disruptions, and growing passenger frustration across several domestic routes.

At the peak of the crisis from April and May, some airlines reduced flight frequencies while operators raised concerns after Jet A1 prices climbed above N2,500 per litre in parts of the country.

The situation also triggered warnings from the Airline Operators of Nigeria (AON) in April, which threatened to suspend operations over the escalating cost of aviation fuel and other operational challenges confronting carriers.

Passengers across the country were affected by the disruptions, with many travellers increasingly questioning recurring schedule changes, delays and sudden cancellations by airlines already struggling with high fuel and maintenance costs.

The refinery said the latest reduction is expected to lower fuel procurement costs for airlines, improve operational stability and support efforts to moderate airfares.

The intervention comes as the Federal Government continues efforts to stabilise the aviation fuel market through the naira-for-crude initiative and other policy measures aimed at reducing pressure on operators.

A government technical committee earlier recommended the inclusion of aviation fuel under the naira-for-crude arrangement as part of measures to address persistent supply and pricing challenges within the sector.

The committee also projected indicative Jet A1 prices ranging between N1,760 and N1,988 per litre in Lagos, and between N1,809 and N2,037 per litre in Abuja.

Aviation fuel remains one of the largest cost components for airlines in Nigeria, alongside aircraft maintenance, insurance, foreign exchange and leasing expenses.