The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has expressed optimism that the recent release of the indicative gantry price for aviation fuel by Dangote Refinery will promote market stability and encourage compliance from fuel marketers.
In an interview with our correspondence in Abuja, Mr. George Ene-Ita, Director of Public Affairs at NMDPRA, highlighted the significant role this price disclosure will play in stabilizing the aviation fuel market. The refinery has set the price of Aviation Turbine Kerosene (ATK), also known as Jet A1 fuel, at N1,820 per litre, a move aimed at ensuring greater transparency in the sector.
This development comes at a time when concerns about the soaring cost of aviation fuel have reached a peak, with Nigerians and airline operators alike voicing their dissatisfaction over the financial strain it places on the aviation industry.
In a bid to address the issue, the NMDPRA had previously implemented a price cap for Jet A1 fuel, directing marketers to sell directly to airlines within the price range of N1,760 to N1,988 per litre in Lagos, and N1,809 to N2,037 per litre in Abuja. Despite these guidelines, some marketers have continued to sell the fuel at prices above N2,230 per litre, which has further exacerbated concerns within Nigeria’s aviation sector.
Ene-Ita explained that, while petroleum product prices have been deregulated, the release of the new indicative price by Dangote Refinery will support NMDPRA’s surveillance operations and help ensure compliance by marketers and operators.
“Although petroleum product prices have been deregulated, the latest gantry price disclosure by Dangote Refinery, which they have committed to publishing daily, will assist in monitoring and ensuring compliance during our routine surveillance operations across the country,” Ene-Ita said.
He further noted that the move by Dangote Refinery was a concession aimed at easing overhead costs for airline operators, thereby preventing disruptions to the aviation sector’s operations. He emphasized that the NMDPRA would play its part to ensure Nigerians benefit from the initiative.
The NMDPRA’s pricing framework is based on Platts average figures recorded between April 17 and 23, reflecting global oil market conditions. While these figures provide a benchmark for fair pricing, actual market prices may fluctuate depending on factors like purchase timing and global market dynamics.
Ene-Ita also pointed to geopolitical tensions, including the ongoing U.S.–Iran crisis, as major contributors to the recent rise in aviation fuel prices, causing increased global volatility.
