Nigeria’s government has imposed limits on jet fuel prices and approved credit arrangements for airlines in an effort to prevent widespread flight disruptions linked to sharply rising fuel costs, according to an official document reviewed by Reuters.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) set indicative retail price ranges for aviation fuel between 1,760 naira and 1,988 naira per litre in Lagos, and between 1,809 naira and 2,037 naira in Abuja. These benchmarks are based on pricing data from April 17 to April 23.
Despite the pricing framework, the regulator cautioned that volatility in global energy markets, including tensions involving the United States and Iran, as well as higher supplier costs, could still push prices upward.
Neither the NMDPRA nor the aviation ministry immediately responded to requests for comment.
The policy shift follows emergency discussions triggered by airline warnings that jet fuel prices had surged by more than 270%. Operators said the spike had forced fare increases and raised concerns over potential capacity reductions.
Last week, President Bola Tinubu approved a 30% relief measure on airline debts owed to aviation agencies. He also directed fuel suppliers, airlines, and regulators to agree on a “fair” pricing structure within 72 hours to avoid disruption across the aviation sector.
As part of the agreed measures, airlines will be granted a 30-day credit period for fuel purchases. The aviation ministry has also been tasked with mediating outstanding debt disputes between operators and petroleum marketers, according to the document.
A technical committee established by the NMDPRA recommended that fuel marketers supply airlines directly within the approved price band, a move intended to reduce costs and improve transparency in the supply chain.
The committee also called for engagement with Dangote Petroleum Refinery and Petrochemicals regarding recently increased premiums applied to international pricing benchmarks used for jet fuel.
Additional recommendations include stricter validation of fuel distributors operating in airport zones, which could reduce the number of authorised suppliers, as well as exploring the inclusion of jet fuel under Nigeria’s naira-for-crude programme to limit airlines’ exposure to foreign exchange fluctuations.
(Exchange rate used: $1 = 1,360.5 naira)
Source: ZAWYA