Nigeria’s aviation sector is facing renewed pressure as oil marketers continue selling Jet A1 aviation fuel above the pricing range advised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), raising concerns over rising operational costs for airlines.
Although the NMDPRA had earlier recommended that aviation fuel should trade between N1,760 and N1,988 per litre in Lagos and around N2,037 per litre in Abuja, market data shows that airlines are still paying as high as N2,230 per litre and above.
The advisory followed consultations with key industry stakeholders, including airline operators, fuel marketers, and depot owners, aimed at stabilising pricing in the aviation fuel market. However, actual market transactions have remained significantly higher than the regulatory guidance.
Findings indicate that strong demand for Jet A1, combined with the presence of multiple intermediaries in the supply chain, is contributing to the persistent price increase. These layers of middlemen are reportedly adding margins that push final costs beyond recommended levels.
Reports also show that the Dangote Petroleum Refinery has aviation fuel available at a gantry price of about N1,800 per litre, but additional mark-ups by distributors and marketers are driving retail prices upward before reaching airlines.
The widening gap between refinery prices, regulatory benchmarks, and final market rates has raised concerns about inefficiencies in the distribution system and the limited impact of pricing advisories in a deregulated environment.
Industry analysts warn that if these structural issues are not addressed, airlines may continue to face escalating operational costs, which could eventually affect ticket prices and the overall stability of the aviation sector.
Aviation stakeholders have called for greater transparency in pricing, with some urging refiners and major suppliers to publicly disclose daily ex-depot prices to reduce speculation and excessive mark-ups within the supply chain.
Airline operators have also expressed concern over rising fuel costs, noting that the sharp increase in Jet A1 prices has significantly inflated operational expenses, with some carriers reporting multiple-fold increases in cost per flight over recent months.
Aviation industry leaders are advocating for a transparent and standardised pricing framework that clearly outlines refinery, depot, and transportation costs in order to reduce exploitation within the distribution chain.
Meanwhile, aviation sector experts and policy think tanks have called on the federal government to introduce emergency stabilisation measures for domestic airlines, warning that continued fuel price volatility could threaten the survival of operators.
They also recommended short-term financial support mechanisms, improved pricing oversight, and structural reforms across the aviation value chain to ensure long-term stability and prevent further cost escalation.
