Despite a pricing advisory issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), aviation fuel marketers have continued to sell Jet A1 to airlines at prices as high as N2,230 per litre, significantly above the recommended range.
The regulator had earlier projected that aviation fuel should sell between N1,760 and N1,988 per litre in Lagos, and around N2,037 in Abuja, based on prevailing market conditions. However, industry checks show that actual prices remain well above this band, intensifying pressure on Nigeria’s aviation sector.
Sources within the industry attribute the persistent price surge to strong demand and the role of intermediaries within the supply chain. Multiple middlemen operating between depots and end-users are said to be inflating prices, thereby undermining regulatory guidance.
Findings also indicate that the Dangote Petroleum Refinery currently has aviation fuel in stock, with a gantry price estimated at about N1,800 per litre. However, the product reportedly becomes significantly more expensive by the time it reaches airlines due to markups by distributors.
Stakeholders warn that the widening gap between official benchmarks and market prices reflects structural inefficiencies in distribution and raises concerns about transparency in the downstream sector.
Reacting to the situation, Olatide Jeremiah, CEO of Petroleumprice.ng, called for increased openness in pricing, urging refineries to publish daily gantry prices to curb excessive profiteering. He argued that improved transparency would help eliminate abnormal margins and stabilise the market.
Airline operators have also expressed concern over rising operational costs. Chibuike Uloka, spokesperson for United Nigeria Airlines, noted that fuel expenses have surged sharply, with some operators now spending more than double previous costs depending on aircraft type and routes.
Similarly, Capt. Ado Sanusi, Managing Director of Aero Contractors, emphasised the need for a transparent pricing framework that clearly outlines refinery prices, landing costs, and logistics expenses to prevent exploitation.
Meanwhile, the Aviation Round Table Initiative has called for urgent government intervention, proposing a temporary stabilisation plan, including fuel price support mechanisms and financial relief for airlines.
Industry experts caution that unless supply bottlenecks and pricing distortions are addressed, high aviation fuel costs could continue to drive up airfares and threaten the stability of Nigeria’s aviation industry.
