MAN, airline operators engage Dangote on diesel, JetA1 supply
This development comes amid the recent announcement by the refinery that it would begin sales and distribution of its refined products by January 2024.
MAN, airline operators engage Dangote on diesel and JetA1 supply [BI Africa]
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This development comes amid the recent announcement by the refinery that it would begin sales and distribution of its refined products by January 2024.
Recall that the refinery recently received its first crude shipment of about One million litres signifying the beginning of its scheduled 650,000 barrels per day petrol production.
Apart from the refining of Premium Motor Spirit (PMS), the Dangote Petroleum Refinery has said that by January 2024, it would begin the production of Automotive Gas Oil (AGO), also known as diesel, and JetA1 or aviation fuel.
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Confirming the development, the Chairman of United Nigeria Airlines and spokesperson for the Airlines Operators of Nigeria (AON), Prof. Obiorah Okonkwo, revealed that local airline carriers had engaged the management of the refinery, expressing hope that the talks would be fruitful.
“We are talking with him and hope that it will be fruitful,” Okonkwo said.
Nigerian airlines have in the past few months, attributed the increase in their flight tickets to the high cost of aviation fuel otherwise known as JetA1 fuel.
According to local aviation operators, JetA1 now costs ₦1,000 per litre, accounting for 70% of an airline's operating costs, up from 40% before the global oil crisis.
Also, the Manufacturers Association of Nigeria (MAN) led by its president, Francis Meshioye, noted that its members had started planning towards setting up a meeting with the Dangote refinery management with hopes of negotiating for the supply of diesel to its members.
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He said, “We are trying to get a proper position…maybe in two days we will meet and have a proper position on this.”
According to data collated from the annual and bi-annual reports of the association, the sum of ₦144 billion was spent by Nigerian manufacturers in 2022 on alternative energy sources (excluding power from distribution companies) indicating an increase of 82% from ₦25 billion in 2014.
The prices of diesel and aviation fuel have also witnessed a 50% increase between June and October this year, raising concerns among the operators.
MAN has also warned that any further increase in the price of diesel from the current ₦1000 would result in the shutdown of more factories.
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