Fuel Shortage in Aviation Sector: Regulator Sets Revised Pricing Range

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, or NMDPRA, proposed on Monday that the cost of Jet-A1, also known as aviation fuel, should be between N1,760 and N1,988 per litre and N1,809 and N2,037 per litre in Lagos and Abuja, respectively.

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This price range was determined after a technical committee, convened by NMDPRA on April 24, 2026, discussed the ongoing surge in aviation fuel costs and the concerns raised by domestic airlines.

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NMDPRA also suggested that energy marketers should sell aviation fuel directly to airline operators, and that marketers should offer a 30-day credit window to airlines for payment of supplies.

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A statement outlining the meeting's outcome noted that the recommended price range is based on Platts average prices from April 17 to 23, 2026, and that prices for products purchased outside this window may be higher due to current market volatility, partly caused by the United States and Iran war, and varying operational costs.

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The statement also recommended that NMDPRA direct marketers to sell directly to airline operators during this period to ensure stability in the market.

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To achieve price stability, NMDPRA was advised to engage with the DPRP to adjust the premium on Platts and the cost variation element that was recently increased by the refinery.

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NMDPRA was also urged to collaborate with FAAN and NCAA to validate airside distributors with the necessary infrastructure, with the goal of reducing the number of airside operators based on agreed-upon criteria.

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The Ministry of Aviation was encouraged to facilitate a meeting between oil marketers and airline operators to resolve outstanding debts.

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Marketers were advised to consider offering a 30-day credit window to airlines for payment of supplies made, and NMDPRA was recommended to suggest the inclusion of ATK under the Naira for crude Initiative.