NMDPRA pegs jet fuel price at N2,037 per litre for Abuja ....... Fixes price band for Lagos

 NMDPRA pegs jet fuel price at N2,037 per litre for  Abuja

....... Fixes price band for  Lagos

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pegged aviation fuel prices as high as ₦2,037 per litre in Abuja.

The regulator disclosed this in a statement on Monday.

 The regulator also set a Lagos price  band between ₦1,760 and ₦1,988 per litre.

The intervention, according to the statement, is aimed at stabilising supply and pricing amid persistent volatility in Nigeria’s aviation sector.

In addition, the NMDPRA has directed energy marketers to sell directly to airline operators.

The  move, the regulator said, is designed to cut out middlemen and reduce inflated costs within the supply chain.

The regulator expects improved efficiency, transparency and quicker access to fuel across airports.

NMDPRA price benchmark anchors aviation fuel stability

According to the authority, the benchmark reflects Platts average prices recorded between 17 and 23 April 2026. However, it warned that purchases outside this window could attract higher rates. Global volatility, including geopolitical tensions, continues to influence market dynamics.

The NMDPRA stated: “Following the engagements and current market fundamentals, we believe the indicative end-user price should range within the stated bands.” It added that fluctuations remain likely given prevailing international oil market conditions.

Another key recommendation is the inclusion of aviation turbine kerosene under the Federal Government’s naira-for-crude initiative. This policy enables transactions in naira rather than foreign exchange. Consequently, it is expected to ease forex pressure and support long-term price stability.

Meanwhile, the regulator plans to engage refiners to review recent increases in premium charges tied to Platts pricing. It noted that cost variations introduced by refineries have contributed significantly to price escalation. Adjustments in these elements could therefore moderate final pump prices.

In addition, the NMDPRA will collaborate with the Federal Airports Authority of Nigeria and the Nigerian Civil Aviation Authority to validate airside fuel distributors. The objective is to streamline operations by reducing the number of operators to those with adequate infrastructure.

This step is expected to enhance operational efficiency and improve safety compliance at Nigerian airports. However, it may also reshape competition within the aviation fuel distribution segment.

The authority also acknowledged ongoing financial tensions between airlines and fuel marketers. It urged the Ministry of Aviation to convene a consultative meeting to resolve outstanding debts

.... This is considered critical to maintaining uninterrupted fuel supply.

Furthermore, marketers have been encouraged to introduce a 30-day credit window for airline operators. This would provide short-term financial relief and support smoother operational planning for carriers.

The measures followed a high-level meeting convened by the Minister of Aviation and Airspace Management on 22 and 23 April 2026. Key stakeholders included regulators, airline operators and fuel marketers.

Subsequently, a technical committee led by the NMDPRA met on 24 April to refine recommendations.

 These outcomes now form the basis of the regulator’s strategy to address the aviation fuel crisis.

For airlines, fuel remains a dominant cost driver. Therefore, the new pricing structure could influence ticket fares and route economics. However, the success of these measures will depend on compliance and global oil market trends.

Meanwhile, Air transport think tank group and safety advocate : Aviation Safety Round Table Initiative (ASRTI), has prescribed a bouquet of interventions in resolving the escalating cost of aviation fuel, saying the Federal Government needs to urgently establish a National Energy Price Protection Program (NEPPP).

The establishment of the body, the safety group said has become compeling because Nigeria’s aviation sector stands at a critical inflection point with the  Jet A1 crisis,which has occasioned  liquidity strain on airlines.

The ASRTI said  the cascading financial pressures across airports, concessionaires, and ground handlers have converged into a systemic emergency , creating a distortion that threatens the survival of our airlines and, by extension, the entire aviation ecosystem.

In a letter of appeal to President Bola Ahmed Tinubu and members of the National Assembly and the Minister of Aviation and Aerospace Development , signed by the  ASRTI President ,  Air Commodore Ademola Onitiju (rtd) urged the government to  stabilise the system by  putting in place  a corrective, time‑bound Jet A1 refund mechanism.

This , he said, should not be a subsidy ,  but a temporary parity‑restoration measure.

 He said : "Government should contract six months of Jet A1 supply at negotiated parity prices, covering the hardship period of February to April 2026, and extend corrective supply for an additional four months while global markets stabilise. This mechanism must be transparent, audited, and publicly reconciled to ensure that refinery‑gate prices align with depot and gantry prices. Next, a narrowly targeted emergency stabilisation package for airlines is essential."  He said airlines require short‑term, low‑interest bridge loans and working‑capital guarantees to cover immediate cash‑flow shortfalls and essential operational costs.

These funds, he said, must be tied to strict milestones: safety compliance, payroll continuity, and uninterrupted essential services.

 "Each airline should submit a concise liability‑cleanup plan detailing how funds will be used to retire or restructure verified debts to ground handlers, fuel suppliers, and agencies. All support must be conditional on independent verification and governed by a strict sunset clause to prevent the emergence of permanent subsidies.

"Parallel measures must protect ground handlers, concessionaires, and other service providers while airlines are stabilised.

"Options include emergency liquidity advances, short‑term rent freezes or deferrals, and promissory commitments for verified renovation and investment losses, " he noted.

 On the Federal Government  30 percent  mandated haircut on specified debts, the ASRTI President said it has to be consistent with the approach already applied to  aviation agencies.

 He said : "Such a mechanism   is necessary, but it must be used sparingly, only after independent valuation, and only for verified operational receivables. Any such relief must be paired with protections for frontline workers, including wage continuity and severance guarantees, and must include safeguards against moral hazard.

"To ensure transparency and accountability, a neutral reconciliation vehicle should be established to process payments, advances, and concessions.

 Each beneficiary should receive a one‑page reconciliation statement, and an independent auditor should certify outcomes at the end of the relief window.

"No entity receiving support should be allowed to compromise safety, maintenance, training, or regulatory compliance.

"Beyond emergency measures, structural reforms are indispensable. A comprehensive overhaul of the aviation charging ecosystem is overdue.

"A top global advisory firm should be engaged to audit airport charges, passenger levies, navigation fees, parking and ground‑handling tariffs, and other provider charges.

 "This review must benchmark Nigeria against international standards, eliminate duplications, and produce a phased roadmap to reduce the share of taxes and charges embedded in fares.

"These reforms should be accompanied by revenue‑transition plans for affected operators to ensure sustainability. To prevent future crises, a National Energy Price Protection Program (NEPPP) should be established.

 These rules‑based frameworks should include a volatility buffer fund, mandatory price transparency across the supply chain, and a logistics‑cost rationalisation audit."

 He said the  Federal Competition and Consumer Protection Commission should be empowered to investigate refinery‑to‑gantry spreads, airport delivery margins, and any anti‑competitive practices that distort pricing.

The ASRTI President went on : "Looking beyond stabilisation, Nigeria must embrace a medium‑term growth strategy—“Fly Nigeria, Fly”—to expand access, stimulate demand, and unlock the aviation sector’s economic multiplier. This programme should combine tax and charge rationalisation, route‑development incentives, PPP‑driven regional airport upgrades, and investment in cargo and cold‑chain logistics. It should set measurable targets for passenger growth, connectivity expansion, and export development. It should also catalyse private investment in maintenance, repair and overhaul (MRO) facilities, pilot and technical training, and domestic leasing to support sustainable fleet renewal.

"Finally, communication must be clear, timely, and transparent. The public must understand that the corrective fuel mechanism is temporary, that liquidity support is conditional, and that structural reforms will follow once stability is restored.

"An independent ombudsman should oversee the entire process to ensure fairness, credibility, and public trust.   Time is not on our side. The cost of inaction is far greater than the cost of decisive, targeted intervention.

"The aviation sector is not merely a mode of transport; it is a national economic artery. To allow it to fail would be to impose a far greater burden on the Nigerian people and economy.

"The path forward is clear: stabilise the airlines, protect the ecosystem, restore fair pricing, enforce accountability, and build a stronger, more competitive aviation sector for the future." 

In a related development, Ibom Air Ltd has hinted of a possible reduction in its flight capacity following its inability to cope with the astronomical increase in the price of aviation fuel.

The Airline in a statement by its group manager, marketing and communication, Aniekan Essienette, disclosed that it spends N7.6million on fuel per flight.

According to the company, the cost of fueling its aircraft has tripled between January and April representing a 350% increment since the beginning of March.

The statement reads in parts, "The fuel price situation is an unprecedented crisis for Nigeria’s domestic airlines. At Ibom Air, the cost of fueling our aircraft has more than tripled between January and today.

"From an average of N2.1m per flight in January, as at today, the 27th of April, we are paying approximately N7.6m to fuel every flight. This is a more than 350 percent  increase since the beginning of March, a space of just 7 weeks! And our aircraft are some of the most fuel efficient in the domestic market.

"At this point, domestic airlines are baffled at why the price of aviation fuel in Nigeria has ballooned to this level, way above the rest of the world, while the fuel marketers obtain 95% or more of their aviation fuel from Dangote Refinery.

"The situation is exacerbated by the fact that a combination of competitive pressures and patriotism have prevented a commensurate increase in our fares, meaning that we and our fellow domestic airlines have had to absorb the immense operating losses resulting from this situation.

"We, too, will have to take whatever ameliorating actions we can in the days ahead, including reducing our capacity if necessary, to be able to continue to provide services to our customers and our country".

The Airline appealed to fuel marketers to seriously reconsider the pricing of aviation fuel to make the airline business model continue to work in Nigeria.