He said the move is expected to lead to a crash in air tickets in Nigeria.
The Federal Government has announced that domestic airlines operating under the auspices of Airline Operators of Nigeria (AON) will purchase from Dangote Petrochemical Refinery instead of imported Jet A1.
Airlines Will Start Buying From Dangote Refinery and Shun Imported Jet A1 Fuel – Keyamo
Festus Keyamo, Nigeria’s Minister of Aviation and Aerospace Development, predicts that the action will cause air ticket prices to plummet.”The Nigerian Airline Operators recently convened. “They have made a clear decision, and they will all no longer purchase fuel that is imported,” Keyamo declared in an interview that aired on Channels Television’s Political Paradigm on Tuesday.It is the decision of the Airline Operators of Nigeria with my push and blessing that they should only buy from Dangote Refinery, the Jet A1, according to Keyamo, who stated that the airline operators were acting to “support a local industry, Dangote Refinery.”
Challenges to Oil Prices
The Federal Government verified that starting on October 1, crude oil will be sold in naira to the Dangote refinery and other refineries.The goal of the policy is to stabilise pump prices, which could lead to cheaper and more predictable fuel prices for customers.
The pressure on foreign exchange reserves would decrease with transactions in naira rather than dollars, stabilising the dollar-naira exchange rate and containing inflation.The minister claimed that the action would remove the obstacles causing oil prices to rise on the global market.”The naira for crude purchase started yesterday; there will be no dollar component; it will be purchased in naira. It will not be impacted by the ups and downs of the global oil price or the fluctuations of the global market.
We will make our purchase in naira and it will be in our local currency, so we can clearly understand how much it will cost. We will definitely have access to less expensive jet A1 fuel, he continued.