Despite a pricing advisory by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, oil marketers have continued to sell aviation fuel above recommended rates, with airlines now paying as high as ₦2,230 per litre, raising fresh concerns across Nigeria’s aviation sector.
The regulator had earlier indicated that Jet-A1 should sell between ₦1,760 and ₦1,988 per litre in Lagos and around ₦2,037 in Abuja, following consultations with stakeholders. However, market realities show that prices remain significantly higher than the suggested band.
Industry findings attribute the persistent hike to strong demand and the activities of intermediaries within the supply chain, who continue to add substantial markups before the product reaches airlines.
Checks also revealed that while the Dangote Petroleum Refinery sells aviation fuel at about ₦1,800 per litre at gantry level, middlemen inflate the price as it moves through the distribution chain, pushing final costs far beyond regulatory expectations.
The development has intensified pressure on airline operators, many of whom say rising fuel costs are severely impacting operations. Industry players warn that unless inefficiencies in distribution are addressed, the burden could translate into higher ticket prices and reduced service capacity.
Operators have also raised concerns over lack of transparency in pricing. Stakeholders are calling for clearer disclosure of refinery prices and landing costs to curb excessive margins and stabilise the market.
Meanwhile, aviation groups have urged the Federal Government to intervene urgently, proposing measures such as temporary fuel price support, financial assistance for airlines, and broader reforms to reduce operational costs and prevent a potential crisis in the sector.