By Abiola Olawale
The Dangote Refinery has increased the ex-gantry price of its petrol to N1,175 per litre.
Sources within the refinery told the press of the move to an increased petrol price by N100, from the previous price of N1,075 per litre, which came after global oil prices crossed $100 per barrel.
The development comes after the refinery reduced the price of the product to N1,075 per litre after an oil price slump two days ago.
The plant had increased its petrol price to N1,175 per litre on March 9 — up from N995 per litre on March 7 and N874 per litre on March 2.
The latest price increase coincided with a rebound in global oil prices, which hit $100 per barrel on Thursday.
Meanwhile, Airline Operators of Nigeria (AON), on Friday, lamented the spike in the price of Jet-A1, otherwise known as aviation fuel, saying domestic carriers are bleeding financially.
AON said the price of aviation fuel, which was around N1,000 per litre two weeks ago, has risen to around N1,800 per litre in many locations, representing roughly an 80 per cent increase within a short period.
Aviation fuel is the single highest component of airline operations, accounting for about 30 to 35 per cent of total operational costs. Due to the recent conflict in the Middle East, the product has experienced a price spike.
Meanwhile, Spokesperson for the AON, Professor Obiora Okonkwo, said the surge has put airlines under financial pressure, especially as most carriers have chosen not to immediately transfer the additional costs to passengers.
However, Okonkwo warned that if the situation persists and the government is unable to intervene, domestic carriers would no longer be able to absorb the losses.
Speaking on Channels TV, the Chairman of United Nigeria Airlines, said: “Two weeks ago, we were getting Jet-A1 at about N1,000 a litre, which today is about N1,800, and even more in some stations. We have experienced an increase of about 80 per cent. That’s quite a spike. We are watching the situation in the Gulf area, and we will continue to see what happens. We are not in a business where you can easily adjust your ticket price. Right now, what we are doing is that we are bleeding. We are taking the blow. We are selling tickets at a very non-profitable price. We are losing a lot of money.
“We just pray it would not be for long. Obviously, adjustments will be expected anytime soon. But again, we are very sensitive to the economic situation of Nigerians and our travellers.
“The recent release of reserve crude oil will have an impact on the market. But if it does not, we are expecting that the government should engage Dangote refineries. We were more hopeless in a situation where there was no refinery in Nigeria. That was the last two years. We are very hopeful that we can find a solution to it.
“I am hoping that it will not last beyond this, but if it does, I can tell you that maybe many airlines may not be able to absorb the losses that are associated with the development.”
