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Jet Fuel Crisis Deepens as Prices Hit N2,230/Litre Despite Regulatory Advisory
Nigerian airlines face rising costs as aviation fuel prices exceed regulatory limits due to supply chain inefficiencies.
Nigeria’s aviation sector is facing mounting strain as aviation fuel prices continue to exceed regulatory guidance, with marketers selling Jet A1 at N2,230 per litre and above despite an advisory from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The regulator had suggested a price range of N1,760 to N1,988 per litre in Lagos and about N2,037 in Abuja, following stakeholder engagements aimed at stabilising the market.
Nonetheless, airlines are still paying significantly higher prices, driven largely by supply chain inefficiencies and markups by intermediaries.
Although the Dangote Petroleum Refinery is supplying Jet A1 at roughly N1,800 per litre, the involvement of middlemen continues to push prices beyond recommended levels.
The situation highlights persistent gaps in pricing transparency and distribution efficiency within the downstream petroleum sector.
Olatide Jeremiah of Petroleumprice.ng criticised the opacity in pricing, stating: “There is lack of transparency… Dangote Refinery should… publish its daily jet fuel gantry prices… to erode abnormal margins by middlemen.”
Airlines say the impact has been severe. According to Chibuike Uloka of United Nigeria Airlines, operational costs have surged, with some carriers spending even more than Ibom Air’s reported N7.6 million per flight.
“It’s a free market… the marketers are still selling what they are selling. Nobody has been able to call them to order,” he said.
Aero Contractors boss Capt. Ado Sanusi echoed calls for reform, stressing the need for clarity in pricing:
“We should know what price Dangote is selling… we are not saying we should fix prices, but at least nobody will take advantage of airlines.”
Amid the crisis, the Aviation Round Table Initiative (ARTI) has proposed an emergency stabilisation plan, including a temporary Jet A1 refund scheme and government-backed fuel supply arrangements.
The group also recommended financial support for airlines and broader reforms to improve transparency, reduce costs, and prevent future shocks in the sector.
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