The Nigerian Midstream and Downstream Petroleum Regulatory Authority has introduced a recommended price range for aviation fuel (Jet-A1) in a bid to curb rising costs and support the aviation sector.
According to the regulator, the suggested nationwide price band is between ₦1,760 and ₦1,988 per litre. However, in key aviation hubs such as Lagos and Abuja, prices are expected to be slightly higher, ranging from ₦1,809 to ₦2,037 per litre.
The pricing framework follows deliberations by a technical committee convened on April 24, 2026, to address the persistent surge in aviation fuel costs—an issue that has raised serious concerns among domestic airlines about the sustainability of their operations.
The authority explained that the new price range is based on international market benchmarks, particularly the Platts average prices recorded between April 17 and 23, 2026. It also cautioned that prices could fluctuate beyond the recommended band due to global uncertainties, including geopolitical tensions such as the United States–Iran tensions and varying operational costs.
Direct Supply to Airlines Proposed
As part of measures to ease pressure on airline operators, the NMDPRA recommended that fuel marketers supply aviation fuel directly to airlines. This approach is expected to eliminate intermediaries, improve efficiency, and potentially reduce overall costs.
In addition, the regulator proposed a 30-day credit facility for airlines, allowing them more flexibility in settling payments for fuel supplies—an initiative industry stakeholders have long advocated to ease cash flow challenges.
Industry Collaboration and Policy Measures
The NMDPRA also called for stronger collaboration among stakeholders in both the aviation and petroleum sectors. It urged the Ministry of Aviation to facilitate discussions between oil marketers and airline operators to address outstanding debts.
Furthermore, the authority disclosed plans to work with the Federal Airports Authority of Nigeria and the Nigerian Civil Aviation Authority to streamline airside fuel distribution by validating and possibly reducing the number of operators based on set criteria.
To further stabilise pricing, the regulator proposed including Aviation Turbine Kerosene in the Federal Government’s naira-for-crude initiative. This move is expected to reduce the impact of foreign exchange volatility and improve affordability for domestic airlines.