Despite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) pricing advisory indicating aviation fuel should sell between N1,760 and N1,988 per litre in Lagos and about N2,037 in Abuja, oil marketers and middlemen are selling Jet A1 to airlines at N2,230 per litre and above, deepening concerns across Nigeria's aviation sector. Market checks by Vanguard show actual transactions remain significantly above the regulator's benchmark. The Dangote Petroleum Refinery currently has commercial stock at a gantry price of about N1,800 per litre, but intermediaries marking up prices are driving the increase. Industry stakeholders call for transparent pricing.
Key Points
- Airlines face fuel costs far above regulatory guidance, threatening operational viability.
- Passengers may face higher ticket prices as carriers struggle with elevated expenses.
- Middlemen capture significant margins while Dangote sells at competitive gantry prices.
- Regulatory guidance appears ineffective in a market-driven downstream sector.
- An industry think-tank has proposed an urgent bailout plan for domestic airlines.
Watch whether the NMDPRA takes enforcement action against marketers violating its pricing band and if the government intervenes to stabilise the sector.
Sources: Vanguard News
