Despite a pricing advisory issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), oil marketers have continued to sell aviation fuel (Jet-A1) to airlines at about N2,230 per litre or higher, intensifying pressure on Nigeria’s aviation industry.
The regulator had earlier recommended a price range of N1,760 to N1,988 per litre in Lagos and around N2,037 per litre in Abuja, based on prevailing market conditions. The guidance followed consultations with key stakeholders, including airlines, marketers, depot owners, and other industry participants, aimed at resolving persistent pricing disputes.
However, checks across the market show that actual prices remain well above the suggested band, with airlines still paying significantly more for the product.
Industry sources attribute the sustained high prices to strong demand and the role of intermediaries within the supply chain, who are believed to be inflating margins. The multi-layered distribution system—from depot to end-users—has continued to push up final costs.
Findings also indicate that the Dangote Petroleum Refinery currently has aviation fuel available at a gantry price of about N1,800 per litre. Yet, middlemen purchasing from the refinery are reportedly adding steep markups before supplying to airlines, driving prices beyond the regulator’s benchmark.
The widening gap between recommended and actual prices highlights inefficiencies in the downstream sector and raises concerns about the effectiveness of regulatory guidance in a largely deregulated market.
Stakeholders warn that unless supply bottlenecks and pricing distortions are addressed, airlines may continue to grapple with rising operational costs, which could ultimately affect ticket fares and overall industry stability.
Speaking on the development, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, called for greater transparency, urging the Dangote Refinery to publish its daily gantry prices to curb excessive profiteering by middlemen.
Similarly, United Nigeria Airlines’ spokesperson, Chibuike Uloka, noted that the situation has significantly increased operating costs across the industry. He explained that fuel expenses per flight have surged sharply, with some airlines now spending more than double what they paid earlier in the year, depending on aircraft type and route.
Uloka added that the market remains largely deregulated, limiting the regulator’s ability to enforce pricing, as its role is mainly advisory based on market realities.
Also weighing in, the Managing Director of Aero Contractors, Capt. Ado Sanusi, stressed the need for a transparent pricing framework. He said clearer visibility on refinery prices, import landing costs, and logistics expenses would help establish fair benchmarks and prevent exploitation of airlines.
Meanwhile, the Aviation Round Table Initiative (ARTI) has called on the Federal Government to urgently intervene, warning that the spike in Jet-A1 prices could cripple domestic carriers.
The group noted that aviation fuel prices rose sharply from about N900 per litre in February to as high as N3,000–N3,300 by mid-April 2026, placing severe financial strain on airlines already battling high costs and currency volatility.
In a letter to President Bola Tinubu and other key officials, ARTI proposed a series of measures to stabilise the sector. These include a temporary Jet-A1 refund mechanism, government-backed fuel supply at negotiated prices for a defined period, and short-term financial support for airlines.
The group also recommended broader reforms such as improved pricing transparency, auditing of aviation charges, and the creation of a National Energy Price Protection Programme to guard against future shocks.
According to the think-tank, these interventions are necessary to restore stability, ensure operational continuity, and prevent long-term damage to Nigeria’s aviation sector.
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