BY OLAPEJU OLUBI
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has moved to calm mounting tension in the aviation sector, declaring that the retail price of aviation fuel should not exceed ₦1,988 per litre in Lagos and ₦2,037 per litre in Abuja.
The intervention comes amid rising complaints by domestic airlines over spiralling Jet A1 costs, which operators say are worsening operating losses, forcing route cuts and threatening service disruptions across the country.
In a statement issued after a meeting of its technical committee on April 24, 2026, convened to address disputes between airlines and fuel marketers, the regulator released what it described as fair and indicative market prices for aviation fuel based on prevailing global benchmarks.
According to the agency, end-user prices should range between ₦1,760 and ₦1,988 per litre in Lagos, while Abuja should trade between ₦1,809 and ₦2,037 per litre.
“Following the engagements and current market fundamentals, we believe the indicative end-user price should range between ₦1,760 – ₦1,988 per litre and ₦1,809 – ₦2,037 per litre in Lagos and Abuja respectively,” the authority stated.
It explained that the benchmark was derived from Platts average prices recorded between April 17 and April 23, 2026.
“The indicative prices are based on Platts average prices for the period 17th – 23rd April 2026. Products purchased outside this window may be higher due to high volatility in current prices precipitated by the U.S.–Iran war and varying operational costs by operators,” it added.
The statement signals a major regulatory attempt to rein in what airlines have described as arbitrary pricing and excessive margins in the aviation fuel supply chain.
Beyond pricing guidance, NMDPRA also proposed structural reforms aimed at improving efficiency and reducing costs for carriers.
Among the key recommendations is a directive for marketers to sell aviation fuel directly to airline operators, a move expected to eliminate middlemen costs, improve transparency and guarantee more competitive pricing.
“NMDPRA should direct marketers to sell directly to the airline operators,” the agency said.
The regulator further disclosed plans to review pricing components charged by suppliers, particularly premiums linked to Platts benchmarks and recently adjusted refinery cost elements.
“To ensure price stability, NMDPRA should engage DPRP to adjust the premium on Platts and the cost variation element that was recently increased by the refinery,” it stated.
Industry stakeholders say the premium and other add-on charges have significantly inflated local Jet A1 prices beyond international trends, putting Nigerian airlines at a disadvantage compared with regional competitors.
In another move to sanitise airport fuel operations, the authority said it would collaborate with the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA) to streamline the number of distributors operating on the airside of airports.
“NMDPRA to work with FAAN and NCAA to validate airside distributors with infrastructure, to trim the number of airside operators based on agreed criteria,” the statement said.
Analysts believe reducing the number of under-equipped or duplicative airside distributors could lower logistics bottlenecks, improve safety standards and reduce hidden charges passed on to airlines.
The latest intervention follows weeks of pressure from domestic carriers who warned that unchecked fuel prices were becoming unsustainable.
Jet A1 remains the single largest operating expense for most Nigerian airlines, accounting for more than 40 per cent of total costs.
With passenger demand still sensitive to fare increases, operators have argued that stabilising fuel prices is critical to protecting jobs, sustaining route networks and preventing further stress in the aviation industry.
The NMDPRA’s latest pricing template is expected to serve as a reference point for immediate negotiations between airlines, marketers and airport fuel distributors as government seeks to restore stability to the sector.
Olapeju is a journalist and aviation reporter.
