The Federal Government has given Dangote Refinery the green light to become the sole supplier of jet fuel, also known as Jet A1, to the country’s airline operators.
Mr. Festus Keyamo (SAN), the Minister of Aviation, made this announcement in an interview with Channels TV.
According to Keyamo, airline operators agreed to make Dangote Refinery their exclusive provider of jet fuel, with his full support and approval.
The refinery has a capacity of 650,000 barrels per day.
Keyamo cited the recent implementation of the naira-for-crude agreement with Dangote as a key factor in this decision, highlighting its potential to ease pressure on foreign exchange.
“This arrangement will shield airline operators from fluctuations in global crude oil prices, ultimately reducing operational costs,” Keyamo said.
Purchasing jet fuel in naira will protect the price from changes in the global market, resulting in more predictable costs.
Dangote Refinery has already begun producing jet fuel and diesel, with diesel hitting the local market shortly after launch.
The refinery has also made its first export shipment to Europe, with 45,000 metric tonnes of jet fuel allocated to BP.
This development is expected to have a significant impact on Nigeria’s aviation industry, ensuring a stable supply of jet fuel and reducing reliance on foreign exchange.
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