The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pegged aviation fuel at a maximum of N2,037 per litre in Abuja and between N1,760 and N1,988 per litre in Lagos to stabilise supply and curb rising costs. The move comes as airline operators have threatened a shutdown, warning that operations could be disrupted if urgent measures are not implemented. The authority has proposed direct sales from marketers to airlines, a 30-day credit window, and inclusion of Jet A1 under the naira-for-crude initiative. Ibom Air has warned it may reduce flight frequencies.
Key Points
- Passengers face potential flight cancellations or reduced frequencies despite price caps.
- Fuel costs per flight have surged 350% since January, from N2.1m to N7.6m.
- Direct marketer-to-airline sales aim to cut middlemen and improve transparency.
- A 30-day credit window could ease airline cash flow and prevent immediate shutdown.
- Inclusion under naira-for-crude may stabilise prices but faces implementation challenges.
Watch whether airlines proceed with the shutdown threat or if the new price caps and credit window resolve the standoff.
Sources: Leadership
