•As industry think-tank proposes airlines stabilisation plan to FG

Despite a pricing advisory by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, oil marketers have continued to sell aviation fuel, also known as Jet A1, to airlines at N2,230 per litre and above, deepening concerns across Nigeria’s aviation sector.

The NMDPRA had earlier indicated that aviation fuel should sell within a band of N1,760 to N1,988 per litre in Lagos and about N2,037 per litre in Abuja, based on prevailing market fundamentals.

The guidance followed a series of stakeholder engagements involving aviation operators, oil marketers, depot owners and other industry players aimed at resolving recent disputes over pricing.

However, market checks by Vanguard showed that actual transactions remain significantly above the regulator’s benchmark, with airlines still paying as high as N2,230 per litre.

Findings indicate that strong demand for Jet A1 and the activities of intermediaries seeking to maximise margins are major factors sustaining the elevated prices.

Industry sources said the supply chain, often involving multiple middlemen between depot and end-users, continues to exert upward pressure on final prices.

Further checks revealed that the Dangote Petroleum Refinery currently has commercial stock of aviation fuel, with a gantry price of about N1,800 per litre.

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However, intermediaries lifting the product and supplying to airlines are marking up prices significantly, pushing them far above the regulator’s recommended range.

The lingering pricing gap underscores ongoing inefficiencies in distribution and raises questions about the effectiveness of regulatory guidance in a largely market-driven downstream sector.

Industry stakeholders warned that unless supply bottlenecks and arbitrage opportunities within the distribution chain are addressed, airlines might continue to face high operating costs, with possible implications for ticket pricing and overall sector stability.

Reacting in an interview with Vanguard, Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, said: “Currently, there is lack of transparency in jet fuel pricing, Dangote Refinery should as a matter of urgency publish its daily jet fuel gantry prices, this would erode abnormal margins by middlemen and help save artificial hike of Jet fuel that is about to cripple businesses in Nigeria’s in Nigeria’s aviation sector.”

Similarly, the spokesperson for United Nigeria Airlines, Chibuike Uloka, lamented that the situation had significantly increased operational costs, saying for an airline as Ibom Air, which requires about N7.6 million per flight operation, the cost burden is even higher, depending on aircraft type and route structure, with some operators spending double of Ibom Air’s figure.He said: “It’s not a controlled market, it’s a free market; so, they, NMDPRA, cannot fix prices. Rather, from their own findings, from their own assessment, based on market value, market force and all that, they are trying to opine that what the cost of fuel should be is that price they mentioned. They are suggesting that this is what it should be based on the cost, landing cost, among others.“But the marketers are still selling what they are selling. Nobody has been able to call them to order. This issue is not about United Nigeria Airlines alone. Everything that has to do with the fuel scarcity and availability has to do with the Airline Operators of Nigeria, AON, not any particular airline.“But if we want to speak on how it affects us, we probably say, just like Ibom Air said, the cost of one fuel for each operation in January was N2.9 million, now it is N7.6 million. For people like us who use Airbus because it has a longer fuel capacity and endurance, it is double that figure. ”These are the areas we will be able to say we are spending more now on operational costs individually.”Managing Director/ Chief Executive Officer of Aero Contractors, Capt Ado Sanusi, called for a transparent pricing system, saying no one should take advantage of airlines because of the challenges and uncertainties in the global market.He said: “While I cannot confirm the price, the price regulatory agency has put a price (from what I read in the papers), which we have been advocating for a long time. We should have a transparent pricing system, meaning we should know what price Dangote is selling the fuel. ”For those importing, we should know the landing price. From there, we will know the transportation cost. We will then have a benchmark for pricing. We are not saying we should fix prices, but at least nobody will take advantage of airlines because of the challenges and uncertainties in the global market.”
Industry think-tank proposes airlines stabilisation plan to FGMeanwhile, industry think-tank, Aviation Round Table Initiative, ASRTI, has called for an urgent bailout of domestic airlines, saying the surge in Jet-A1 prices could cripple operators and result in severe consequences for the aviation sector.The aviation industry think-tank lamented the sharp rise in aviation fuel costs, which climbed from about N900 per litre in February to between N3,000 and N3,300 by mid-April 2026, saying it created an intense financial strain on domestic carriers grappling with high operating costs and currency volatility.President of ASRTI, Air Commodore, Ademola Onitiju, retd, and General Secretary, Olumide Ohunayo, in a letter addressed to President Bola Tinubu, Minister of Aviation and Aerospace Development, Festus Keyamo, Chairman Senate Committee on Aviation and Chairman House Committee on Aviation, outlined urgent measures to stabilise the sector.They proposed a corrective, time-bound Jet-A1 refund mechanism, and urged the federal government to contract six months of fuel supply at negotiated parity prices to cover the hardship period between February and April 2026, and extend the arrangement for an additional four months while global markets stabilised.The stakeholders called for a narrowly targeted emergency stabilisation package for airlines, saying operators required immediate financial support to cushion liquidity pressures and sustain operations, amid fuel price shock.The letter read: “To stabilise the system, the first step is a corrective, time-bound Jet-A1 refund mechanism. This is not a subsidy but a temporary parity-restoration measure. ”Government should contract six months of Jet A1 supply at negotiated parity prices, covering the hardship period of February to April 2026, and extend corrective supply for an additional four months while global markets stabilise. ”This mechanism must be transparent, audited and publicly reconciled to ensure that refinery-gate prices align with depot and gantry prices.

Next, a narrowly targeted emergency stabilisation package for airlines is essential. Airlines require short?term, low-interest bridge loans and working-capital guarantees to cover immediate cash?flow shortfalls and essential operational costs. These funds must be tied to strict milestones: safety compliance, payroll continuity, and uninterrupted essential services. Each airline should submit a concise liability-cleanup plan detailing how funds will be used to retire or restructure verified debts to ground handlers, fuel suppliers and agencies. All support must be conditional on independent verification and governed by a strict sunset clause to prevent the emergence of permanent subsidies.“Parallel measures must protect ground handlers, concessionaires, and other service providers while airlines are stabilised. Options include emergency liquidity advances, short?term rent freezes or deferrals, and promissory commitments for verified renovation and investment losses. A 30 per cent mandated haircut on specified debts—consistent with the approach already applied to agencies—may be necessary, but it must be used sparingly, only after independent valuation, and only for verified operational receivables. Any such relief must be paired with protections for frontline workers, including wage continuity and severance guarantees, and must include safeguards against moral hazard.“To ensure transparency and accountability, a neutral reconciliation vehicle should be established to process payments, advances, and concessions. Each beneficiary should receive a one?page reconciliation statement, and an independent auditor should certify outcomes at the end of the relief window. No entity receiving support should be allowed to compromise safety, maintenance, training, or regulatory compliance.“Beyond emergency measures, structural reforms are indispensable.

A comprehensive overhaul of the aviation charging ecosystem is overdue. A top global advisory firm should be engaged to audit airport charges, passenger levies, navigation fees, parking and ground?handling tariffs, and other provider charges. This review must benchmark Nigeria against international standards, eliminate duplications, and produce a phased roadmap to reduce the share of taxes and charges embedded in fares. These reforms should be accompanied by revenue?transition plans for affected operators to ensure sustainability.“To prevent future crises, a National Energy Price Protection Program, NEPPP, should be established. These rules?based frameworks should include a volatility buffer fund, mandatory price transparency across the supply chain, and a logistics?cost rationalisation audit.

The Federal Competition and Consumer Protection Commission should be empowered to investigate refinery-to-gantry spreads, airport delivery margins, and any anti?competitive practices that distort pricing.”

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