Dangote Refinery Announces New Price of Aviation Fuel as Airlines Decry High Costs
- Dangote Refinery set the aviation fuel gantry price at N1,820 per litre, but airlines are still buying at higher prices from marketers
- NMDPRA provided a pricing guideline, but it remains largely unenforced, as marketers fail to comply with the fixed price range
- Stakeholders are calling for greater transparency in jet fuel pricing, as it is significantly increasing airline operational expenses
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Dangote Petroleum Refinery has fixed the gantry price of aviation fuel at N1,820 per litre, a move aimed at improving pricing transparency in Nigeria’s aviation fuel market, Vanguard reported.
The development comes as airline operators continue to express concerns over the high cost of jet fuel and its impact on operations across the sector.
Source: UGC
Airlines still pay above benchmark
Despite guidance from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), marketers are reportedly selling aviation fuel at N2,230 per litre and above.
The regulator had earlier advised that aviation fuel should sell within a range of N1,760 to N1,988 per litre in Lagos and about N2,037 per litre in Abuja, based on prevailing market conditions.
The recommendation followed stakeholder engagements involving airline operators, oil marketers, depot owners, and other industry players to address pricing disputes.
However, market checks indicate that actual prices remain significantly higher than the suggested band, raising concerns among aviation stakeholders.
Calls for transparency in jet fuel pricing
Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah called for greater transparency in the pricing structure.
He urged the Dangote Refinery to publish its daily gantry prices, noting that this would help reduce excessive margins by intermediaries and curb artificial price increases.
According to him, improved transparency could ease pressure on airlines and stabilise the market.
Airlines highlight operational impact
Spokesperson for United Nigeria Airlines, Chibuike Uloka, said the aviation fuel market operates under a free-market system, limiting the regulator’s ability to enforce fixed prices.
He explained that the NMDPRA’s pricing guidance is advisory, based on factors such as landing costs, while marketers ultimately determine selling prices.
Uloka added that the issue affects all members of the Airline Operators of Nigeria (AON), not just a single airline.
He also highlighted the rising operational costs faced by airlines, noting that fuel expenses per operation increased significantly — from about N2.9 million in January to N7.6 million — while operators using larger aircraft incur even higher costs.
Source: Getty Images
Nigerian airlines face delays over aviation fuel crisis
Legit.ng earlier reported that air travellers in Nigeria are experiencing delays and uncertainty as a prolonged shortage of aviation fuel, known as Jet A1, continues to disrupt flight operations across major airports.
Airlines say the scarcity is affecting their ability to maintain schedules, leading to delayed, rescheduled, and in some cases, cancelled flights.
According to operators, the situation has worsened in recent days, leaving many passengers stranded and forcing others to reconsider their travel plans.
Source: Legit.ng
