The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pegged aviation fuel prices as high as ₦2,037 per litre in Abuja. The regulator also set a Lagos band between ₦1,760 and ₦1,988 per litre. This intervention is aimed at stabilising supply and pricing amid persistent volatility in Nigeria’s aviation sector.
In addition, the NMDPRA has directed energy marketers to sell directly to airline operators. This move is designed to cut out middlemen and reduce inflated costs within the supply chain. Therefore, the regulator expects improved efficiency, transparency and quicker access to fuel across airports.
NMDPRA price benchmark anchors aviation fuel stability
According to the authority, the benchmark reflects Platts average prices recorded between 17 and 23 April 2026. However, it warned that purchases outside this window could attract higher rates. Global volatility, including geopolitical tensions, continues to influence market dynamics.
The NMDPRA stated: “Following the engagements and current market fundamentals, we believe the indicative end-user price should range within the stated bands.” It added that fluctuations remain likely given prevailing international oil market conditions.
Another key recommendation is the inclusion of aviation turbine kerosene under the Federal Government’s naira-for-crude initiative. This policy enables transactions in naira rather than foreign exchange. Consequently, it is expected to ease forex pressure and support long-term price stability.
Meanwhile, the regulator plans to engage refiners to review recent increases in premium charges tied to Platts pricing. It noted that cost variations introduced by refineries have contributed significantly to price escalation. Adjustments in these elements could therefore moderate final pump prices.
In addition, the NMDPRA will collaborate with the Federal Airports Authority of Nigeria and the Nigerian Civil Aviation Authority to validate airside fuel distributors. The objective is to streamline operations by reducing the number of operators to those with adequate infrastructure.
This step is expected to enhance operational efficiency and improve safety compliance at Nigerian airports. However, it may also reshape competition within the aviation fuel distribution segment.
The authority also acknowledged ongoing financial tensions between airlines and fuel marketers. It urged the Ministry of Aviation to convene a consultative meeting to resolve outstanding debts. This is considered critical to maintaining uninterrupted fuel supply.
Furthermore, marketers have been encouraged to introduce a 30-day credit window for airline operators. This would provide short-term financial relief and support smoother operational planning for carriers.
The measures followed a high-level meeting convened by the Honourable Minister of Aviation and Airspace Management on 22 and 23 April 2026. Key stakeholders included regulators, airline operators and fuel marketers.
Subsequently, a technical committee led by the NMDPRA met on 24 April to refine recommendations. These outcomes now form the basis of the regulator’s strategy to address the aviation fuel crisis.
For airlines, fuel remains a dominant cost driver. Therefore, the new pricing structure could influence ticket fares and route economics. However, the success of these measures will depend on compliance and global oil market trends.
