NMDPRA Sets Benchmark for Aviation Fuel Prices Amid Airline–Marketer Dispute
Nigeria’s aviation sector may be heading towards a period of relative price stability following fresh intervention by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which has outlined indicative price ranges for aviation fuel across key airports.
In a statement issued after a technical committee meeting held on 24 April 2026, the Authority Chief Executive, Saidu Mohammed, disclosed that the recommended end-user price of Jet A1 fuel should range between N1,760 and N1,988 per litre in Lagos, and between N1,809 and N2,037 per litre in Abuja.
The regulatory agency explained that the benchmarks were derived from Platts average pricing data recorded between 17 and 23 April 2026, reflecting prevailing international market conditions.
It, however, cautioned that actual prices could exceed these ranges for products sourced outside the reference window, citing ongoing volatility in the global oil market.
According to the NMDPRA, recent fluctuations in aviation fuel prices have been exacerbated by geopolitical tensions, particularly the ongoing conflict between the United States and Iran. The agency noted that the crisis has contributed to instability in crude oil supply chains, thereby influencing refined product pricing worldwide.
Additionally, varying operational costs among fuel marketers and distributors within Nigeria were identified as contributing factors to price disparities experienced by domestic airlines.
Industry analysts note that aviation fuel accounts for up to 40 per cent of airline operating costs, making price stability a critical factor for the sustainability of Nigeria’s air transport sector.
In recent months, Nigerian carriers have repeatedly raised concerns over erratic fuel pricing and supply bottlenecks, which have led to increased airfares and occasional flight disruptions.
To address the ongoing friction between airlines and fuel marketers, the NMDPRA proposed a series of corrective measures aimed at improving transparency and efficiency in the supply chain.
Foremost among these is a directive that marketers should sell aviation fuel directly to airline operators, a move expected to eliminate intermediaries and reduce mark-ups that inflate final prices.
The agency also recommended engaging the Domestic Price Reference Pricing (DPRP) framework to review and possibly adjust the premium applied to Platts pricing benchmarks. This includes revisiting the cost variation component recently increased by local refineries, which has further strained airline finances.
In addition, the NMDPRA called for closer collaboration with the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA) to streamline airside fuel distribution operations.
The regulator emphasised the need to validate and possibly reduce the number of airside fuel distributors based on clearly defined infrastructure and operational criteria. This, it said, would enhance efficiency, reduce duplication of services, and ultimately contribute to more stable pricing.
The intervention comes at a critical time for Nigeria’s aviation industry, which has been grappling with high operating costs, foreign exchange constraints, and fluctuating passenger demand. Airlines have consistently called for regulatory support to address what they describe as unsustainable fuel pricing regimes.
Stakeholders believe that if effectively implemented, the NMDPRA’s recommendations could ease tensions between airlines and marketers, restore confidence in the supply chain, and help stabilise ticket prices for passengers.
As the global oil market continues to react to geopolitical developments, the success of these measures will largely depend on sustained regulatory oversight and cooperation among industry players.
